Can corporate taxation be explained by limited liability?

Miglo, A. (2011) Can corporate taxation be explained by limited liability? In: Morland, R. B. and Gagglione, A. J. (eds.) Business and Finance: Performance and Management. Nova Science Publishers: New York, pp. 185-190. ISBN 9781611229363

Full text not currently available from Enlighten.


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 Sections
Glasgow Author(s) Enlighten ID:Miglo, Dr Anton
Authors: Miglo, A.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Publisher:Nova Science Publishers
Related URLs:

University Staff: Request a correction | Enlighten Editors: Update this record