IDEAS home Printed from https://ideas.repec.org/a/spr/sjobre/v61y2009i3d10.1007_bf03372822.html
   My bibliography  Save this article

Weitere Erkenntnisse zum Steuervorteil von Fremdkapital nach der Unternehmensteuerreform 2008

Author

Listed:
  • Stephan Eberl

    (Universität Hohenheim, Institut für Betriebswirtschaftslehre (510C))

Abstract

With the introduction of the German tax reform “Unternehmensteuerreform 2008” several major modifications concerning the corporate taxation as well as the private taxation took place. The reform thus directly affects enterprise valuation. We analyze the value of the tax shield of debt under the new tax law assuming autonomous financing. We focus on the relevance of risk preferences for the enterprise value. Building upon arbitrage-free capital markets, we show that individual risk preferences influence valuation under the new regulation. Full distribution of corporate earnings maximizes the tax shield. In addition, the introduction of an interest barrier rule leads to a risky tax shield even when the corporate debt level is determinate and interest rates are constant. Presuming proportionality between EBIT and EBITDA yields applicable valuation formulas. Moreover, the investors’ holding periods for corporate securities become crucial for enterprise value.

Suggested Citation

  • Stephan Eberl, 2009. "Weitere Erkenntnisse zum Steuervorteil von Fremdkapital nach der Unternehmensteuerreform 2008," Schmalenbach Journal of Business Research, Springer, vol. 61(3), pages 251-282, May.
    • Handle: RePEc:spr:sjobre:v:61:y:2009:i:3:d:10.1007_bf03372822
    DOI: 10.1007/BF03372822
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/BF03372822
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/BF03372822?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stiglitz, Joseph E, 1969. "A Re-Examination of the Modigliani-Miller Theorem," American Economic Review, American Economic Association, vol. 59(5), pages 784-793, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hartmann-Wendels, Thomas, 2012. "Regulatorische Folgen der Finanzkrisen: Auswirkungen auf die Leasing-Branche," Leasing - Wissenschaft & Praxis, Universität zu Köln, Forschungsinstitut für Leasing, vol. 10(1), pages 3-88.
    2. John S. Strong & John R. Meyer, 1990. "Sustaining Investment, Discretionary Investment, and Valuation: A Residual Funds Study of the Paper Industry," NBER Chapters, in: Asymmetric Information, Corporate Finance, and Investment, pages 127-148, National Bureau of Economic Research, Inc.
    3. Fumio Hayashi, 1983. "Real and Financial Decisions of a Firm with Bankruptcy and Default: An Integration," NBER Working Papers 1097, National Bureau of Economic Research, Inc.
    4. Michael Smart, 1996. "On limited liability and the development of capital markets: An historical analysis," Working Papers msmart-96-02, University of Toronto, Department of Economics.
    5. Detemple, J. & Gottardi, P. & Polemarchakis, H. M., 1995. "The relevance of financial policy," European Economic Review, Elsevier, vol. 39(6), pages 1133-1154, June.
    6. Edgardo Bucciarelli & Nicola Mattoscio, 2021. "Reconsidering Herbert A. Simon’s Major Themes in Economics: Towards an Experimentally Grounded Capital Structure Theory Drawing from His Methodological Conjectures," Computational Economics, Springer;Society for Computational Economics, vol. 57(3), pages 799-823, March.
    7. John Kamanzi & G.S. Namusonge & Ndabaga Eugene, 2018. "Influence of Capital Structure to the Growth of Women Micro Businesses in Bugesera District," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 167-186, January.
    8. David P. Baron, 1973. "Default Risk, Homemade Leverage and the Modigliani-Miller Theorem," Discussion Papers 31, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. Babl, Christian & Fausel, Andreas & Kuhlman, Leonard & Schiereck, Dirk, 2014. "Werteffekte auf Anleiheemissionen: Eine Note für deutsche Emittenten," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(1), pages 8-22.
    10. J. Atsu Amegashie, 2021. "Advantageous Smallness in Contests," CESifo Working Paper Series 9419, CESifo.
    11. DeAngelo, Harry, 2021. "Corporate financial policy: What really matters?," Journal of Corporate Finance, Elsevier, vol. 68(C).
    12. Chen, Jing, 2021. "On the theoretical foundation of corporate finance," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 256-262.
    13. Peter Reichling & Anastasiia Zbandut, 2017. "Costs of capital under credit risk," FEMM Working Papers 170003, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    14. Jacques Drèze & Enrico Minelli & Mario Tirelli, 2008. "Production and financial policies under asymmetric information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 35(2), pages 217-231, May.
    15. Jacek Barburski & Artur Hołda, 2023. "Determinants of the Corporate Financing Structure in the Energy and Mining Sectors; A Comparative Analysis Based on the Example of Selected EU Countries for 2012–2020," Energies, MDPI, vol. 16(12), pages 1-29, June.
    16. Dahai Yu, 1998. "Two equivalence theorems for government finance," International Finance Discussion Papers 622, Board of Governors of the Federal Reserve System (U.S.).
    17. David A. Butz, 1991. "Free Cash Flow Theory Without the Free Cash Emphasis," UCLA Economics Working Papers 614, UCLA Department of Economics.
    18. Stiglitz Joseph E., 2010. "Contagion, Liberalization, and the Optimal Structure of Globalization," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-47, December.
    19. Philippe Adair & Mohamed Adaskou & David McMillan, 2015. "Trade-off-theory vs. pecking order theory and the determinants of corporate leverage: Evidence from a panel data analysis upon French SMEs (2002–2010)," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1006477-100, December.
    20. Jazmín González Aguirre & Alberto Del Villar, 2021. "Administrative Costs and Tariff Rates in the Presence of Customs Evasion: Evidence from Ecuador," Economies, MDPI, vol. 9(1), pages 1-16, February.

    More about this item

    Keywords

    G12; G32; G35;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sjobre:v:61:y:2009:i:3:d:10.1007_bf03372822. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.