Leverage, uncertainty and investment decisions

DOI10.1016/J.ECONLET.2020.109052MaRDI QIDQ2180729zbMATH OpenOpenAlexFDO

Authors Turalay Kenc, Ciaran Driver

Publication date 14 May 2020

Published in Economics Letters (Search for Journal in Brave)

Full work available at URL https://eprints.soas.ac.uk/32507/1/Driver_Leverage%2C%20uncertainty%20and%20investment%20decisions_AAM.pdf

zbMATH Keywords

irreversible investmentleveragetax incentivesuncertainty

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Corporate finance (dividends, real options, etc.) (91G50)

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(7)

• Accelerated depreciation, default risk and investment decisions
• Interest deductibility under default risk and the unfavorable tax treatment of investment costs: a simple explanation
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• Tax, stimuli of investment and firm value
• Leverage effect breakdowns and flight from risky assets
• Signal on the Margin: Behavior of Levered Investors and Future Economic Conditions*
• Robust stimulus of private investment: Tax rate cut or investment subsidy?

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