Asymmetric Taxation Under Incremental and Sequential Investment
28 Pages Posted: 28 Jun 2002
Date Written: May 2002
Abstract
This article discusses the effects of an asymmetric tax scheme on incremental and sequential investment strategies. The tax base is equal to the firm's return, net of an imputation rate. When the firm's return is less than this rate, however, no tax refunds are allowed. This scheme is neutral under both income and capital uncertainty.
Keywords: Corporate Taxation, Real Options
JEL Classification: H32
Suggested Citation: Suggested Citation
Panteghini, Paolo M., Asymmetric Taxation Under Incremental and Sequential Investment (May 2002). Available at SSRN: https://ssrn.com/abstract=316625 or http://dx.doi.org/10.2139/ssrn.316625
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.