Corporate debt bias in NSE listed companies in Kenya - evaluation of an ACE reform on investmentments levels
Date
2015-11
Authors
Kinyanjui, Mwangi Collins
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This study looks at the corporate debt bias resulting from debt deductibility of interest. It aims at establishing whether an Allowance for Corporate Equity (ACE) tax reform within capital intensive firms listed on the NSE specifically the effect ACE would have on investments. Estimates used show that investments would grow up to five percent if the ACE was applied from the year 2004 for the selected firms. This growth supports the premise that the tax reform would eliminate investment distortions and encourage higher levels of investment.
Description
Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Business Science in Financial Economics at Strathmore University
Keywords
Corporate debt bias, NSE, Companies, Kenya, ACE, Reform, Investments