Valuation of companies and projects under differential personal taxation |
| |
| Institution: | 1. University of Applied Sciences, Augsburg, and Project Group Business & Information Systems Engineering of the Fraunhofer FIT, Universitätsstr, 12, 86159 Augsburg, Germany;2. FIM Research Center, University of Augsburg and Project Group Business & Information Systems Engineering of the Fraunhofer FIT, Universitätsstr, 12, 86159 Augsburg, Germany;1. Department of Finance, London School of Economics (LSE), Houghton Street, London WC2A 2AE, United Kingdom;2. CEPR, United Kingdom;3. University of Leicester School of Business, Leicester, LE1 7RH, United Kingdom;1. Department of Business Administration, University of Brawijaya, Veteran Rd, Malang, East Java Province, Indonesia;2. Department of Banking and Finance, Chinese Culture University, No. 55, Hwa-Kang Road, Yang-Ming-Shan, Taipei 11114, Taiwan, ROC;3. Department of Business Administration, National Central University, No. 300, Jhongda Rd., Jhongli, Taoyuan 32001, Taiwan, ROC |
| |
| Abstract: | This paper develops formulae for the valuation of companies and projects where there is both differential personal taxation of dividends and interest arising from dividend imputation, and differential taxation of interest and capital gains. The former has been addressed in the literature. This paper represents an extension to recognize both phenomena. It is also shown that valuation errors from ignoring these phenomena are all significant, with the errors from ignoring the interest/capital gains tax differential being at least as great as those from ignoring imputation. Thus, a valuation formula that allows for both phenomena is indicated. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
