[{"title":"Investment distortions and the value of the government's tax claim","department":[{"_id":"275"}],"publication_status":"published","date_updated":"2022-01-06T07:01:38Z","doi":"10.1080/09603107.2013.786161","language":[{"iso":"eng"}],"extern":"1","article_type":"original","abstract":[{"text":"This study integrates the government in the context of company valuation. Our framework allows to analyze and to quantify the risk-sharing effects and conflicts of interest between the government and the shareholders when firms follow different financial policies. We provide novel evidence that firms with fixed future levels of debt might invest more than socially desirable. Economically, this happens if the gain in tax-shields is big enough to outweigh the loss in the unlevered firm value. Our findings have implications for the practice of investment subsidy programs provided by the government to avoid fostering investments beyond the socially optimal level. ","lang":"eng"}],"user_id":"46447","publisher":"Taylor \\& Francis","author":[{"last_name":"Kreutzmann","full_name":"Kreutzmann, Daniel","first_name":"Daniel"},{"first_name":"Sönke","full_name":"Sievers, Sönke","last_name":"Sievers","id":"46447"},{"last_name":"Mueller","full_name":"Mueller, Christian","first_name":"Christian"}],"publication":"Applied Financial Economics (VHB-JOURQUAL 3 Ranking C)","keyword":["corporate tax claim","company valuation","optimal investment","cost of capital"],"jel":["G31","G32","H21","H25"],"volume":23,"status":"public","date_created":"2018-10-31T07:50:58Z","intvolume":" 23","_id":"5108","issue":"11","main_file_link":[{"url":"https://www.tandfonline.com/doi/full/10.1080/09603107.2013.786161#.VE5YmBZwmAd"}],"citation":{"short":"D. Kreutzmann, S. Sievers, C. Mueller, Applied Financial Economics (VHB-JOURQUAL 3 Ranking C) 23 (2013) 977–989.","ieee":"D. Kreutzmann, S. Sievers, and C. Mueller, “Investment distortions and the value of the government’s tax claim,” Applied Financial Economics (VHB-JOURQUAL 3 Ranking C), vol. 23, no. 11, pp. 977–989, 2013.","apa":"Kreutzmann, D., Sievers, S., & Mueller, C. (2013). Investment distortions and the value of the government’s tax claim. Applied Financial Economics (VHB-JOURQUAL 3 Ranking C), 23(11), 977–989. https://doi.org/10.1080/09603107.2013.786161","ama":"Kreutzmann D, Sievers S, Mueller C. Investment distortions and the value of the government’s tax claim. Applied Financial Economics (VHB-JOURQUAL 3 Ranking C). 2013;23(11):977-989. doi:10.1080/09603107.2013.786161","chicago":"Kreutzmann, Daniel, Sönke Sievers, and Christian Mueller. “Investment Distortions and the Value of the Government’s Tax Claim.” Applied Financial Economics (VHB-JOURQUAL 3 Ranking C) 23, no. 11 (2013): 977–89. https://doi.org/10.1080/09603107.2013.786161.","bibtex":"@article{Kreutzmann_Sievers_Mueller_2013, title={Investment distortions and the value of the government’s tax claim}, volume={23}, DOI={10.1080/09603107.2013.786161}, number={11}, journal={Applied Financial Economics (VHB-JOURQUAL 3 Ranking C)}, publisher={Taylor \\& Francis}, author={Kreutzmann, Daniel and Sievers, Sönke and Mueller, Christian}, year={2013}, pages={977–989} }","mla":"Kreutzmann, Daniel, et al. “Investment Distortions and the Value of the Government’s Tax Claim.” Applied Financial Economics (VHB-JOURQUAL 3 Ranking C), vol. 23, no. 11, Taylor \\& Francis, 2013, pp. 977–89, doi:10.1080/09603107.2013.786161."},"year":"2013","type":"journal_article","page":"977-989"},{"main_file_link":[{"url":"https://link.springer.com/article/10.1007/s11573-013-0684-2"}],"page":"947-984","citation":{"chicago":"Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.” Journal of Business Economics (VHB-JOURQUAL 3 Ranking B) 83, no. 9 (2013): 947–84. https://doi.org/10.1007/s11573-013-0684-2.","apa":"Klobucnik, J., & Sievers, S. (2013). Valuing high technology growth firms. Journal of Business Economics (VHB-JOURQUAL 3 Ranking B), 83(9), 947–984. https://doi.org/10.1007/s11573-013-0684-2","ama":"Klobucnik J, Sievers S. Valuing high technology growth firms. Journal of Business Economics (VHB-JOURQUAL 3 Ranking B). 2013;83(9):947-984. doi:https://doi.org/10.1007/s11573-013-0684-2","mla":"Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.” Journal of Business Economics (VHB-JOURQUAL 3 Ranking B), vol. 83, no. 9, Springer, 2013, pp. 947–84, doi:https://doi.org/10.1007/s11573-013-0684-2.","bibtex":"@article{Klobucnik_Sievers_2013, title={Valuing high technology growth firms}, volume={83}, DOI={https://doi.org/10.1007/s11573-013-0684-2}, number={9}, journal={Journal of Business Economics (VHB-JOURQUAL 3 Ranking B)}, publisher={Springer}, author={Klobucnik, Jan and Sievers, Sönke}, year={2013}, pages={947–984} }","short":"J. Klobucnik, S. Sievers, Journal of Business Economics (VHB-JOURQUAL 3 Ranking B) 83 (2013) 947–984.","ieee":"J. Klobucnik and S. Sievers, “Valuing high technology growth firms,” Journal of Business Economics (VHB-JOURQUAL 3 Ranking B), vol. 83, no. 9, pp. 947–984, 2013."},"type":"journal_article","year":"2013","_id":"5192","intvolume":" 83","issue":"9","publication":"Journal of Business Economics (VHB-JOURQUAL 3 Ranking B)","keyword":["Schwartz-Moon model","Market mispricing","Empirical test","Company valuation","Trading strategy"],"publisher":"Springer","author":[{"full_name":"Klobucnik, Jan","first_name":"Jan","last_name":"Klobucnik"},{"first_name":"Sönke","full_name":"Sievers, Sönke","last_name":"Sievers","id":"46447"}],"quality_controlled":"1","volume":83,"jel":["G11","G12","G17","G33"],"date_created":"2018-10-31T11:31:56Z","status":"public","extern":"1","abstract":[{"text":"For the valuation of fast growing innovative firms Schwartz and Moon (Financ Anal J 56:62–75, 2000), (Financ Rev 36:7–26, 2001) develop a fundamental valuation model where key parameters follow stochastic processes. While prior research shows promising potential for this model, it has never been tested on a large scale dataset. Thus, guided by economic theory, this paper is the first to design a large-scale applicable implementation on around 30,000 technology firm quarter observations from 1992 to 2009 for the US to assess this model. Evaluating the feasibility and performance of the Schwartz-Moon model reveals that it is comparably accurate to the traditional sales multiple with key advantages in valuing small and non-listed firms. Most importantly, however, the model is able to indicate severe market over- or undervaluation from a fundamental perspective. We demonstrate that a trading strategy based on our implementation has significant investment value. Consequently, the model seems suitable for detecting misvaluations as the dot-com bubble.","lang":"eng"}],"article_type":"original","user_id":"46447","language":[{"iso":"eng"}],"date_updated":"2022-01-06T07:01:43Z","doi":"https://doi.org/10.1007/s11573-013-0684-2","department":[{"_id":"275"}],"publication_status":"published","title":"Valuing high technology growth firms"}]