Firms' Investment and Finance Decisions: Theory and Empirical MethodologyPaul Butzen, Catherine Fuss This book provides coherent theoretical and empirical analysis of firms’ investment and financing decisions. It assesses the role of uncertainty, financial imperfections, corporate governance and taxation. Evidence is obtained using several unique and high quality microeconomic data-sets, which explore features seldom addressed. |
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Firms' Investment and Finance Decisions: Theory and Empirical Methodology Paul Butzen,Catherine Fuss No preview available - 2003 |
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adjustment costs aggregate analysis asymmetric information average Bank of Belgium Belgian Belgium biotechnology capital market capital structure cash cash-flow cent Cincera coefficient commercialisation correlation cost of capital demand uncertainty dynamic economic effect empirical equity estimates Euler equation external finance financial constraints firm-specific firm's Flat Tax Flat Tax rate growth options higher hypothesis impact information asymmetries interest rate investment behaviour investment decisions investment opportunities investment projects irreversibility Journal labour income tax leverage liquid asset holding marginal measure negative net present value Number of observations output panel data parameters plans positive present value problem profitability proposal proxy ratio real options reduced form regression relationship revenue role sales tax sample sector shareholders significant specific stage Table takeovers tax reform theory Tobin's Q user cost value added variables VC funding VC-backed companies venture capital volatility Wald test
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Page 16 - These are politically sensitive issues and it is important to be clear about the implications of prepayment as the debate proceeds. Housing and consumers' durables must be included in the tax base in order to reap the substantial economic benefits of putting household and business capital onto the same footing...
Page 16 - Both are substantial in magnitude, but could be taxed by the 'prepayment method' described by Bradford (1986). In this approach, taxes on the consumption of services would be prepaid by including investment rather than consumption in the tax base. The prepayment of taxes on services of owner-occupied housing would remove an important political obstacle to substitution of a consumption tax for existing income taxes. At the time the substitution takes place, all owneroccupiers would be treated as having...
Page 16 - In addition, new construction of owneroccupied housing would be subject to tax, as would sales of existing renter-occupied housing to owner-occupiers. These are politically sensitive issues and it is important to be clear about the implications of prepayment as the debate proceeds. Housing...
Page 17 - The second issue to be debated is fiscal federalism or the role of state and local governments Since state and local income taxes usually employ the same tax bases as the corresponding federal taxes, it is reasonable to assume that substitution of consumption for income taxes at the federal level would be followed by similar substitutions at the state and local level. For simplicity...
Page 16 - ... durables. Both are substantial in magnitude, but could be taxed by the "prepayment method" described by David Bradford (1986). In this approach, taxes on the consumption of the services would be prepaid by including investment rather than consumption in the definition of the tax base.
Page 14 - The investment tax credit was repealed for property placed in service after December 31, 1985.
Page 17 - ... the principal untaxed form of consumption. Taxes could, however, be prepaid by including educational services in the tax base. Finally, any definition of a consumption tax base will have to distinguish between consumption for personal and business purposes. Ongoing disputes over exclusion of home offices, business-provided automobiles, equipment, and clothing...
Page 16 - The prepayment of taxes on services of owner-occupied housing would remove an important political obstacle to the substitution of a consumption tax for existing income taxes. At the time the substitution takes place, all owner-occupiers would be treated as having prepaid all future taxes on the services of their dwellings. This is equivalent to excluding not only mortgage interest from the tax base, but also returns to equity, which might be taxed upon the sale of a residence with no corresponding...