Shevlin, T, Shivakumar, L and Urcan, O (2019) Macroeconomic effects of corporate tax policy. Journal of Accounting and Economics, 68 (1). ISSN 0165-4101
Abstract
Prior studies on the relation between corporate taxes and future macroeconomic growth present contradictory evidence. We argue this mixed evidence is at least partly due to the use of statutory corporate tax rates which ignore the complexity of tax exemptions, tax deductions, tax enforcement and firms’ tax planning. We propose an alternative tax rate measure that aggregates cash effective tax rates of listed firms, which reflect not only statutory tax rates, but also other features of the tax code, enforcement, and firm's tax planning. We find a strong robust negative relation between country-level effective tax rates and future macroeconomic growth.
More Details
Item Type: | Article |
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Subject Areas: | Accounting |
Additional Information: |
© 2019. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0 |
Date Deposited: | 03 Apr 2019 19:52 |
Date of first compliant deposit: | 03 Apr 2019 |
Subjects: |
Investment appraisal Macroeconomics Corporation taxes |
Last Modified: | 07 Oct 2024 00:44 |
URI: | https://lbsresearch.london.edu/id/eprint/1115 |