The Impact of Corporate Taxes and Flexibility on Entrepreneurial Decisions with Moral Hazard and Simultaneous Firm and Personal Level Taxation PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Impact of Corporate Taxes and Flexibility on Entrepreneurial Decisions with Moral Hazard and Simultaneous Firm and Personal Level Taxation PDF full book. Access full book title The Impact of Corporate Taxes and Flexibility on Entrepreneurial Decisions with Moral Hazard and Simultaneous Firm and Personal Level Taxation by Fabian Meißner. Download full books in PDF and EPUB format.
Author: Fabian Meißner
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
Get Book Here
Book Description
In this paper we investigate the incentive effects of corporate taxes in an agency setting with a principal facing an investment opportunity including an abandonment option. We are particularly interested in the interplay of taxation and the real option on the principal's incentives to motivate the agent to work hard. First, we extend the well-known studies on tax effects on decision making under uncertainty to moral hazard settings. In a benchmark case we find that, as confirmed in current literature, the corporate income tax has no incentive effect. If the principal accounts for the real option we show that paradoxical tax effects may occur. Also, with respect to the effect of the real option on the incentive problem we show that the option makes it less attractive for the principal to induce the agent to exert a high effort.
Author: Fabian Meißner
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
Get Book Here
Book Description
In this paper we investigate the incentive effects of corporate taxes in an agency setting with a principal facing an investment opportunity including an abandonment option. We are particularly interested in the interplay of taxation and the real option on the principal's incentives to motivate the agent to work hard. First, we extend the well-known studies on tax effects on decision making under uncertainty to moral hazard settings. In a benchmark case we find that, as confirmed in current literature, the corporate income tax has no incentive effect. If the principal accounts for the real option we show that paradoxical tax effects may occur. Also, with respect to the effect of the real option on the incentive problem we show that the option makes it less attractive for the principal to induce the agent to exert a high effort.
Author: Fabian Meißner
Publisher:
ISBN:
Category :
Languages : de
Pages :
Get Book Here
Book Description
Author: Deborah Schanz
Publisher: Springer
ISBN: 9783662519479
Category :
Languages : en
Pages : 424
Get Book Here
Book Description
Many business managerial decisions are influenced by taxes. This text identifies and quantifies possible tax effects on investment strategies and financing policies of national and multinational companies. It includes case studies, exercises and tables.
Author: Charles E. McLure
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 50
Get Book Here
Book Description
Author: Roger H. Gordon
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 22
Get Book Here
Book Description
Several recent papers argue that corporate income taxes should not be used by small, open economies. With capital mobility, the burden of the tax falls on fixed factors (e.g., labor), and the tax system is more efficient if labor is taxed directly. However, corporate taxes not only exist but rates are roughly comparable with the top personal tax rates. Past models also forecast that multinationals should not invest in countries with low corporate tax rates, since the surtax they owe when profits are repatriated puts them at a competitive disadvantage. Yet such foreign direct investment is substantial. We suggest that the resolution of these puzzles may be found in the role of income shifting, both domestic (between the personal and corporate tax bases) and cross-border (through transfer pricing). Countries need cash-flow corporate taxes as a backstop to labor taxes to discourage individuals from converting their labor income into otherwise untaxed corporate income. We explore how these taxes can best be modified to deal as well with cross-border shifting.
Author: Limor Riza
Publisher: Peter Lang Pub Incorporated
ISBN: 9783631514627
Category : Law
Languages : en
Pages : 235
Get Book Here
Book Description
Originally presented as the author's thesis (doctoral)--Hamburg University, 2003.
Author: Geert-Jan Cornelis Theresia Schijndel
Publisher: Springer
ISBN:
Category : Business & Economics
Languages : en
Pages : 232
Get Book Here
Book Description
This book aims to include the effects of a progressive personal tax into the deterministic dynamic theory of the firm. To this end the author investigates the impact of a progressive personal tax on the optimal dividend, financing and investment policy of a shareholder-controlled, value-maximising firm. More specifically, the principal aim is the justification of the thesis that during each stage of their evolution, firms will be controlled by investors in different tax brackets. With this aim in mind, the author develops a dynamic equilibrium and portfolio theory under certainty, which considers: - the market value of an arbitrary firm such that no excess demand for or supply of shares exists, - the portfolio selection of differently taxed investors, - the succession of differently taxed investors, who possess the shares of any value-maximizing firm, in the course of time, - the optimal resulting policy string and corresponding evolution of a firm in the course of time.
Author: Stefania Albanesi
Publisher:
ISBN:
Category : Capital levy
Languages : en
Pages : 0
Get Book Here
Book Description
This paper studies optimal taxation of entrepreneurial capital with private information and multiple assets. Entrepreneurial activity is subject to a dynamic moral hazard problem and entrepreneurs face idiosyncratic capital risk. We first characterize the optimal allocation subject to the incentive compatibility constraints resulting from the private information. The optimal tax system implements such an allocation as a competitive equilibrium for a given market structure. We consider several market structures that differ in the assets or contracts traded and obtain three novel results. First, differential asset taxation is optimal. Marginal taxes on bonds depend on the correlation of their returns with idiosyncratic capital risk, which determines their hedging value. Entrepreneurial capital always receives a subsidy relative to other assets in the bad states. Second, if entrepreneurs are allowed to sell equity, the optimal tax system embeds a prescription for double taxation of capital income â€" at the firm level and at the investor level. Finally, we show that taxation of assets is essential even with competitive insurance contracts, when entrepreneurial portfolios are also unobserved.
Author: Carl E. Steidtmann
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 380
Get Book Here
Book Description
Author: Charles E. McLure
Publisher: Brookings Institution Press
ISBN: 9780815756194
Category : Business & Economics
Languages : en
Pages : 262
Get Book Here
Book Description
