Theoretical and Applied Economics
No. 3 / 2011 (556)
Capital Budgeting: a Tax Shields’ “Mirage”?
Bucharest Academy of Economic Studies
Lucian ŢÂŢU
Bucharest Academy of Economic Studies
Abstract. The mainstream in Finance studies recognizes the impact of tax shields on capital budgeting. This study offers some evidences regarding a bias in direct investment projects valuation in the case of taking into account of the allowance of recovery of the losses recorded in the past financial exercises from future profits as long as the classical indicators (e.g., Net Present Value) are used. Also, this tax regime seems to favour the adoption of less-performer projects by lessperformer companies, as long as these projects should be otherwise rejected by a performer company.
Contents
Antithetic Foundations of Economics
Capital Budgeting: a Tax Shields’ “Mirage”?
Convergence of the Policies for Promoting Total Quality Management in the Public Administrations of Balkan States – European Union Member States
Industrial District as a Corporation
Aspects of the Normalization of Managerial Accounting in Romania on a Microeconomic Level
An Analysis of the Correlation between Size and Performance of Private Pension Funds
Management of the Environmental Risk – an Economic-Social Priority
Implications of European Directives in the Assessment of Insurance Companies