Journal of Accounting and Economics Vol. 10 No. 2 1988
Non-linearities and nominal contracting effects
Abstract
This paper shows that the effect of nominal contracting on stock returns may be more important than previously believed. When information on the maturity structure of depreciation tax shields is incorporated into tests of the nominal contracting hypothesis, nominal contracting effects that are not otherwise detectable become so. Additionally, the proportion of stock return variation explained by nominal contracting effects and the aggregate effect on stock returns of depreciation tax shield revaluations are found to be greater than previously believed.
- DOI
- 10.1016/0165-4101(88)90015-8
- Volume
- 10
- Issue
- 2
- Pages
- 89-110
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref