Can corporate taxation be explained by limited liability?

Miglo, A ORCID: https://orcid.org/0000-0002-9237-5293 2011, 'Can corporate taxation be explained by limited liability?' , in: Business and finance : performance and management , Business economics in a rapidly-changing world , Nova Science, pp. 185-190.

Full text not available from this repository.

Abstract

We consider a model where wealth-constrained entrepreneurs have private information about the qualities of available investment projects. We show that some ”high risk-high return” projects will receive external financing even if they are not socially profitable. Some ”low risk-low return” projects will not be funded even if they are socially profitable. Government interventions can improve equilibrium. Optimal government policy may include corporate taxation, subsidies or other instruments. A universal tax on all entrepreneurs with limited liability is not optimal.

Item Type:	Book Section
Editors:	Morland, RB and Gagglione, AJ
Schools:	Schools > Salford Business School
Journal or Publication Title:	Business and Finance: Performance and Management
Publisher:	Nova Science
Series Name:	Business economics in a rapidly-changing world
ISBN:	9781611229363 (print); 9781621001546 (ebook)
Related URLs:	Publisher
Depositing User:	Dr Anton Miglo
Date Deposited:	25 May 2021 13:02
Last Modified:	04 Nov 2021 14:32
URI:	https://usir.salford.ac.uk/id/eprint/60381

Actions (login required)

Edit record (repository staff only)