Universität zu Köln

Ackermann, Hagen, Fochmann, Martin and Wolf, Nadja (2016). The Effect of Straight-Line and Accelerated Depreciation Rules on Risky Investment Decisions-An Experimental Study. Int. J. Financ. Stud., 4 (4). BASEL: MDPI. ISSN 2227-7072

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Abstract

The aim of this study is to analyze how depreciation rules influence the decision behavior of investors. For this purpose, we conduct a laboratory experiment in which participants decide on the composition of an asset portfolio in different choice situations. Using an experimental setting with different payment periods, we show that accelerated compared to straight-line depreciation can increase the willingness to invest as hypothesized by theory. However, this expected behavior is only observed in a more complex environment (with a subsidy) and not in a less complex environment (without a subsidy).

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Ackermann, Hagen UNSPECIFIED UNSPECIFIED UNSPECIFIED Fochmann, Martin UNSPECIFIED UNSPECIFIED UNSPECIFIED Wolf, Nadja UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-253871
DOI:	10.3390/ijfs4040019
Journal or Publication Title:	Int. J. Financ. Stud.
Volume:	4
Number:	4
Date:	2016
Publisher:	MDPI
Place of Publication:	BASEL
ISSN:	2227-7072
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language OPTIMAL TAX DEPRECIATION; DISCOUNT RATES; INCENTIVES; SALIENCE; TAXATION; HYPOTHESIS; EXPERIENCE; PERCEPTION Multiple languages Business, Finance Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/25387