The Effect of Increased Regulation on Capital Costs and Manual Labor Requirements of Nuclear Power Plants

The purpose of this study is to expand previously published work in examining the attitudes of financial managers towards the investment tax credit. This article specifically investigates and analyzes the perceptions that financial managers have with respect to the impact of the ITC in the input allocation decisions of the firm. This research indicates that financial managers do not believe that the ITC is an important inducement to investment behavior. More importantly, the ITC does not often result in employing capital that requires hiring additional employees. However, this research indicates that there might be an important exception to this. There appears to be a marked relationship with respect to those who stated that the ITC resulted in purchasing new technology and respondents who staled that the ITC resulted in increasing employment. In limited cases, therefore, the ITC appears to lead to an expansion o1 the work lorce through capital formation.