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

See all articles by Rafael Salas-Pérez

Rafael Salas-Pérez

University of Birmingham - Birmingham Business School; Universidad Tecnológica de Bolívar

Juan Gutiérrez Ruiz

Universidad de Valencia

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Date Written: July 28, 2011

Abstract

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

Salas-Pérez, Rafael and Gutiérrez Ruiz, Juan and Velez-Pareja, Ignacio, Valor de los Ahorros en Impuestos por Deuda en Colombia: Un Estudio Empírico (Value of Debt Tax Shields in Colombia: An Empirical Study) (July 28, 2011). Available at SSRN: https://ssrn.com/abstract=1899685 or http://dx.doi.org/10.2139/ssrn.1899685

Rafael Salas-Pérez

University of Birmingham - Birmingham Business School ( email )

Edgbaston Park Road
Birmingham, B15 2TY
United Kingdom
+57 3003023331 (Phone)

HOME PAGE: http://https://www.linkedin.com/in/rysalas-pro

Universidad Tecnológica de Bolívar ( email )

Manga Calle del Bouquet
Campus de Ternera, Parque Industrial y Tecnológico
Cartagena, Bolívar
Colombia
+57 3003023331 (Phone)

HOME PAGE: http://https://www.linkedin.com/in/rysalas-pro

Juan Gutiérrez Ruiz

Universidad de Valencia ( email )

Valencia
Spain

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

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