Empire-Building, Underinvestment and Capital Gain Taxation
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Authors
Miglo, Anton
Issue Date
2010
Type
Article
Language
Keywords
Capital gains tax , Moral hazard , Underinvestment , Empire-building
Alternative Title
Abstract
Description
This note provides an explanation for why tax rates on captial gains are usually lower than ordinary income tax rates based on manager's agency problem related to "empire-building" and the underinvestment problem.
Citation
Miglo, A. (2010). Empire-Building, Underinvestment and Capital Gain Taxation. Journal of Current Issues in Finance, Business and Economics, 2(4), 1-10.
Publisher
Nova Science Publisher