5. Conclusion

The chapter deals with the analysis and classification of selected approaches to the quantification of tax shields. Theories are based on the premise of the perfect capital market and a clearly defined corporate debt policy. However, both assumptions cannot be met in the realistic conditions of emerging markets; many businesses in emerging markets are not listed and debt policy is determined based on the book value of debt and not on the basis of a fixed market value of debt or market leverage.

The theories mentioned in this chapter have many gaps that prevent the correct use under conditions of emerging markets. Gradually, new theories are emerging, reflecting real economic conditions, but it makes it difficult to determine which model is correct. In their book, Copeland et al. investigated various models of tax shield, and their opinion on the choice of the appropriate method is: We leave it to the reader's judgment to decide which approach best fits his or her situation [2].
