The Effects of the Interest Ceiling Rule on Different Industries, Sizes and Legal Forms of Enterprises (Die Auswirkungen Der Zinsschranke Auf Unterschiedliche Branchen, Unternehmensgrößen Und Rechtsformen)

Abstract

The objective of this article is to analyse the effects of the German interest ceiling rule by implementing a simulation model considering uncertainty. Aggregated empiric statistical data of companies in various branches, enterprise sizes and legal forms are entered into a Monte-Carlo simulation model to estimate the development of their individual company values. The model illustrates the significant influences of the interest ceiling rule. However the effects are not only negative, as a possible paradox positive effect was identified due to the combined impacts of a tax loss carry-forward and the interest ceiling rule.