---
_id: '5108'
abstract:
- lang: eng
  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. '
article_type: original
author:
- first_name: Daniel
  full_name: Kreutzmann, Daniel
  last_name: Kreutzmann
- first_name: Sönke
  full_name: Sievers, Sönke
  id: '46447'
  last_name: Sievers
- first_name: Christian
  full_name: Mueller, Christian
  last_name: Mueller
citation:
  ama: Kreutzmann D, Sievers S, Mueller C. Investment distortions and the value of
    the government’s tax claim. <i>Applied Financial Economics (VHB-JOURQUAL 4 Ranking
    C)</i>. 2013;23(11):977-989. doi:<a href="https://doi.org/10.1080/09603107.2013.786161">10.1080/09603107.2013.786161</a>
  apa: Kreutzmann, D., Sievers, S., &#38; Mueller, C. (2013). Investment distortions
    and the value of the government’s tax claim. <i>Applied Financial Economics (VHB-JOURQUAL
    4 Ranking C)</i>, <i>23</i>(11), 977–989. <a href="https://doi.org/10.1080/09603107.2013.786161">https://doi.org/10.1080/09603107.2013.786161</a>
  bibtex: '@article{Kreutzmann_Sievers_Mueller_2013, title={Investment distortions
    and the value of the government’s tax claim}, volume={23}, DOI={<a href="https://doi.org/10.1080/09603107.2013.786161">10.1080/09603107.2013.786161</a>},
    number={11}, journal={Applied Financial Economics (VHB-JOURQUAL 4 Ranking C)},
    publisher={Taylor \&#38; Francis}, author={Kreutzmann, Daniel and Sievers, Sönke
    and Mueller, Christian}, year={2013}, pages={977–989} }'
  chicago: 'Kreutzmann, Daniel, Sönke Sievers, and Christian Mueller. “Investment
    Distortions and the Value of the Government’s Tax Claim.” <i>Applied Financial
    Economics (VHB-JOURQUAL 4 Ranking C)</i> 23, no. 11 (2013): 977–89. <a href="https://doi.org/10.1080/09603107.2013.786161">https://doi.org/10.1080/09603107.2013.786161</a>.'
  ieee: 'D. Kreutzmann, S. Sievers, and C. Mueller, “Investment distortions and the
    value of the government’s tax claim,” <i>Applied Financial Economics (VHB-JOURQUAL
    4 Ranking C)</i>, vol. 23, no. 11, pp. 977–989, 2013, doi: <a href="https://doi.org/10.1080/09603107.2013.786161">10.1080/09603107.2013.786161</a>.'
  mla: Kreutzmann, Daniel, et al. “Investment Distortions and the Value of the Government’s
    Tax Claim.” <i>Applied Financial Economics (VHB-JOURQUAL 4 Ranking C)</i>, vol.
    23, no. 11, Taylor \&#38; Francis, 2013, pp. 977–89, doi:<a href="https://doi.org/10.1080/09603107.2013.786161">10.1080/09603107.2013.786161</a>.
  short: D. Kreutzmann, S. Sievers, C. Mueller, Applied Financial Economics (VHB-JOURQUAL
    4 Ranking C) 23 (2013) 977–989.
date_created: 2018-10-31T07:50:58Z
date_updated: 2026-04-09T08:04:59Z
department:
- _id: '275'
doi: 10.1080/09603107.2013.786161
extern: '1'
intvolume: '        23'
issue: '11'
jel:
- G31
- G32
- H21
- H25
keyword:
- corporate tax claim
- company valuation
- optimal investment
- cost of capital
language:
- iso: eng
main_file_link:
- url: https://www.tandfonline.com/doi/full/10.1080/09603107.2013.786161#.VE5YmBZwmAd
page: 977-989
publication: Applied Financial Economics (VHB-JOURQUAL 4 Ranking C)
publication_status: published
publisher: Taylor \& Francis
status: public
title: Investment distortions and the value of the government's tax claim
type: journal_article
user_id: '115848'
volume: 23
year: '2013'
...