Tax, stimuli of investment and firm value

Yishay D. Maoz

doi:10.1111/j.1467-999X.2010.04099.x

Tax, stimuli of investment and firm value

Yishay D. Maoz

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Pennings (2000, European Economic Review, 44, pp. 383-91) has shown that the government can speed up investment by subsidizing the potential investing firm's entry cost while taxing the future proceeds from the investment, so as to render the net expected value of its subsidy program zero. This note argues that while speeding up investment, this subsidy-tax program also lowers the value of the firm and therefore will be rejected by it.

Original language	English
Pages (from-to)	171-174
Number of pages	4
Journal	Metroeconomica
Volume	62
Issue number	1
DOIs	https://doi.org/10.1111/j.1467-999X.2010.04099.x
State	Published - Feb 2011

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Tax, stimuli of investment and firm value

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