Valor de los Ahorros en Impuestos por Deuda en Colombia: Un Estudio Empírico (Value of Debt Tax Shields in Colombia: An Empirical Study)
26 Pages Posted: 2 Aug 2011 Last revised: 4 Nov 2011
Date Written: July 28, 2011
The English version of this paper can be found at http://ssrn.com/abstract=1919305
This paper estimates the value of tax savings, using the method of discounted cash flows for 23 major industrial firms in the Bolsa de Valores de Colombia (Colombian Stock Market) between 2001 and 2010, showing that this value represents on average between 5.74% and 56.73% out of total firm value depending on discount rate for tax savings. Using Data Panel regressions, it also finds that the average leverage of firms is low relative to other countries. Given this fact, we explored the behavior of the total value of the firm, VT and found no evidence that debt creates value.
Note: Downloadable document is in Spanish.
Keywords: tax shields, discount rates firm value, leverage
JEL Classification: G12, G32, M21, M41
Suggested Citation: Suggested Citation