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Notional interest deduction and cost of equity reduction: An empirical application of the CAPM

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Petitjean, Mikael [FUCAM] Taleb, Said

The goal of this paper is to determine whether the deduction for notional interests has led to a fall in the cost of equity. The empirical study is based on the Colmant and Hübner (2005) modified version of the Capital Asset Pricing Model (CAPM). We show that this fiscal measure has indeed led, on average, to a statistically significant decrease in the cost of equity for our sample of 30 public companies quoted on Euronext (Brussels).

Document type Article de périodique (Journal article)
Access type Accès libre
Publication date 2009
Language Français
Journal information "Revue bancaire et financière" - Vol. 2-3, p. 178-185 (2009)
Publisher Larcier
issn 1376-7720
Publication status Publié
Affiliations Louvain School of Management - Accounting & Finance
FUCaM - Sciences de gestion
Keywords Intérêts notionnels
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Bibliographic reference Petitjean, Mikael ; Taleb, Said. Notional interest deduction and cost of equity reduction: An empirical application of the CAPM. In: Revue bancaire et financière, Vol. 2-3, p. 178-185 (2009)
Permanent URL http://hdl.handle.net/2078/28928