Progressive taxation and corporate liquidation: Analysis and policy implications

被引:13
作者
Agliardi, Elettra [2 ]
Agliardi, Rossella [1 ]
机构
[1] Univ Bologna, Dept Matemates, I-40126 Bologna, Italy
[2] Univ Bologna, Dept Econ, I-40126 Bologna, Italy
关键词
Corporate debt; Default risk; Progressive tax; Real options; CAPITAL STRUCTURE; DEBT; DETERMINANTS;
D O I
10.1016/j.jpolmod.2008.04.011
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper contributes to the debate on alternative corporate tax schemes, employing a rigorous real option methodology which has never been used to study both liquidation policy and taxation. Different tax systems are considered, according to whether the tax regime is progressive or flat and losses are deductible or not. The critical liquidation threshold is derived as a function of interest expenses, the firm's driving parameters and the tax rates and taxation brackets. It is shown that only the adoption of a flat tax plan does not interfere with the firm's liquidation policy, while any progressive tax schedule can slow down or speed up the closure policy. (C) 2008 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
引用
收藏
页码:144 / 154
页数:11
相关论文
共 22 条
[1]   Progressive taxation and corporate liquidation policy [J].
Aghardi, Elettra ;
Aghardi, Rossella .
ECONOMIC MODELLING, 2008, 25 (03) :532-541
[2]  
AGLIARDI E, 2000, AUSTR EC PAPERS, V40, P44
[3]  
Auerbach A.J., 2002, HDB PUBLIC EC, V3, P1251
[4]   Investment-promoting policies in the presence of international interactions [J].
Bettendorf, L .
JOURNAL OF POLICY MODELING, 1998, 20 (06) :715-740
[5]   OPTIMAL CAPITAL STRUCTURE UNDER CORPORATE AND PERSONAL TAXATION [J].
DEANGELO, H ;
MASULIS, RW .
JOURNAL OF FINANCIAL ECONOMICS, 1980, 8 (01) :3-29
[6]   INVESTMENT UNDER UNCERTAINTY - DIXIT,AK, PINDYCK,RS [J].
SCHWARTZ, ES .
JOURNAL OF FINANCE, 1994, 49 (05) :1924-1928
[7]  
ECKBO BE, 2004, HDB CORPORATE FINANC
[8]   DYNAMIC CAPITAL STRUCTURE CHOICE - THEORY AND TESTS [J].
FISCHER, EO ;
HEINKEL, R ;
ZECHNER, J .
JOURNAL OF FINANCE, 1989, 44 (01) :19-40
[9]   An EBIT-based model of dynamic capital structure [J].
Goldstein, R ;
Ju, NJ ;
Leland, H .
JOURNAL OF BUSINESS, 2001, 74 (04) :483-512
[10]   Debt and the marginal tax rate [J].
Graham, JR .
JOURNAL OF FINANCIAL ECONOMICS, 1996, 41 (01) :41-73