The Effects of Taxation on Corporate Investment and Financial Policy
type: CreativeWork
description: The effects of taxation on a firm's investment decisions have long been debated. This study investigates several approaches to the analysis of this subject. One area of focus is the analysis of investment policy in the presence of a legal constraint on financial policy. It has been argued previously that one such constraint necessarily complicates a firm's investment policy decisions. This study shows that the complication arises only from the way in which the constraint is written. In fact, investment policy will be not affected by taxation when this legal constraint is carefully specified. Also analyzed is a legal constraint on share repurchase and the effect of taxing capital gains at realization on investment policy. In addition, the effects of taxation on a firm's financial policy are studied.
abstract: The effects of taxation on a firm's investment decisions have long been debated. This study investigates several approaches to the analysis of this subject. One area of focus is the analysis of investment policy in the presence of a legal constraint on financial policy. It has been argued previously that one such constraint necessarily complicates a firm's investment policy decisions. This study shows that the complication arises only from the way in which the constraint is written. In fact, investment policy will be not affected by taxation when this legal constraint is carefully specified. Also analyzed is a legal constraint on share repurchase and the effect of taxing capital gains at realization on investment policy. In addition, the effects of taxation on a firm's financial policy are studied.
author: Gilmore, Doug John
keywords: Economics, Theory
date published: 2014-12-16T04:04:56Z
date modified: 2026-07-22T22:26:03Z
provider: University of Illinois - Urbana-Champaign
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Illinois at Urbana-Champaign

PropertyValue
property ID: Handle
value: http://hdl.handle.net/2142/70743