Corporate Taxation in a Dynamic World

1. Front Matter

   Pages i-xi

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2. Basic issues

   1. Front Matter

      Pages 1-1

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   2. The real option approach

      Pages 3-14

   3. The entrepreneurial decision

      Pages 15-40

   4. The choice of the organizational form

      Pages 41-55

   5. The tax treatment of debt financing

      Pages 57-89

   6. Foreign Direct Investment and tax avoidance

      Pages 91-106

3. Policy issues

   1. Front Matter

      Pages 107-107

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   2. Corporate tax base options

      Pages 109-133

   3. Broad or narrow tax bases?

      Pages 135-150

   4. Risk-adjusted or risk-free imputation rate?

      Pages 151-160

   5. Full loss offset or no-loss offset?

      Pages 161-175

   6. R-based or S-based taxation?

      Pages 177-198

   7. Conclusions and topics for future research

      Pages 199-203

4. Back Matter

   Pages 205-232

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This book analyzes the economic principles of modern corporate taxation. With respect to the existing products it represents a novelty in at least two respects. First of all, it analyzes not only the effects of taxation on firms' marginal choices, but also focuses on the impact of taxation on discrete choices, such as plant location, R&D investment, and new marketing programs. The second novelty is represented by the application of option pricing techniques to corporate taxation. To give an idea of the importance of options it is sufficient to say that managers are aware that new business programs are an opportunity and not an obligation. This means that they behave as if they owned option-rights. Due to the partial irreversibility of their choices, they know that the exercise of such options reduces their business flexibility.

• Corporate Taxation
• Entrepreneurship
• Financial Strategies
• Investment
• Real Option
• taxation

• Department of Economics, University of Brescia, Brescia, Italy

  Paolo M. Panteghini

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