1. Introduction

The issue of tax shields is an increasingly important object of interest for both business managers and academics. Worldwide in recent years, the volume of leveraged buyouts and management buyouts (MBOs) has increased. In this case, debt is an important component of value [1].

Tax expenses generate tax savings (tax shields), which significantly affect business decisionmaking, especially investment decision-making and capital structure issues. The most important sources of tax savings are interest and depreciation. Therefore, tax shields are divided into two main categories: interest and non-interest tax shields.

More than 50 years of research on tax shield has brought a number of theories to quantify them. The main area of research is the interest tax shield, which has a direct influence on the company's decision about the capital structure, acceptance or non-acceptance of investment projects.

Chapter focuses on the identification and analysis of selected methods for measuring the value of tax shield with an emphasis on the interest tax shield. In Section 2, we define the tax shield and review the main tax shield valuation models. These models are subdivided in accordance with the chosen corporate debt policy. Section 3 is focused on tax shield models when book

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value of debt is assumed. In Section 4, we summarize the findings from the previous sections and examine which models are applicable in emerging markets. We also analyze which factors affect the value of tax shield and how the identified gaps can be addressed. In Section 5 we sum up the previous information.
