IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-27929-4_20.html
   My bibliography  Save this book chapter

Whether it Is Possible to Increase Taxing and Conserve a Good Investment Climate in the Country?

In: The Brusov–Filatova–Orekhova Theory of Capital Structure

Author

Listed:
  • Peter Brusov

    (Financial University under the Government of Russian Federation)

  • Tatiana Filatova

    (Financial University under the Government of Russian Federation)

  • Natali Orekhova

    (Financial University under the Government of Russian Federation)

Abstract

Within investment models, developed by Brusov, Filatova, Orekhova earlier (Brusov et al., Appl Financ Econ 21 (11):815–824, 2011a, Res J Econ Bus ICT 2:16–21, 2011b, Res J Econ Bus ICT 2:11–15, 2011c; Appl Financ Econ 22 (13):1043–1052, 2012a, J Rev Glob Econ 1:106–111, 2012b; J Rev Glob Econ 2:94–116, 2013a, J Rev Glob Econ 2:183–193, 2013b; Cogent Econ Finance 2:1–13, 2014a, J Rev Glob Econ 3:175–185, 2014b; Filatova et al., Bullet FU 48:68–77, 2008) the influence of tax on profit rate on effectiveness of long-term investment projects at different debt levels is investigated. It is shown, that increase of tax on profit rate from one side leads to decrease in project NPV, but from other side it leads to decrease in sensitivity of NPV with respect to leverage level. At high leverage level L the influence of tax on profit rate increase on the effectiveness of investment projects becomes significantly less. We come to conclusion, that taxing could be differentiated depending on debt level of investment projects of the company: for projects with high debt level L it is possible to apply a higher tax on profit rate.

Suggested Citation

  • Peter Brusov & Tatiana Filatova & Natali Orekhova, 2023. "Whether it Is Possible to Increase Taxing and Conserve a Good Investment Climate in the Country?," Springer Books, in: The Brusov–Filatova–Orekhova Theory of Capital Structure, chapter 0, pages 401-417, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-27929-4_20
    DOI: 10.1007/978-3-031-27929-4_20
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:sprchp:978-3-031-27929-4_20. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.