Macroeconomic effects of corporate tax policy

• 成果类型: Article
• 署名作者: Shevlin, Terry; Shivakumar, Lakshmanan; Urcan, Oktay
• 署名单位: University of California System; University of California Irvine; University of London; London Business School; University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2019.03.004
• 发表日期: 2019
• 关键词: aggregate earnings surprises; financial constraints; fiscal-policy; stock-market; GROWTH; INFORMATION; returns

摘要

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 firms' tax planning. We find a strong robust negative relation between country-level effective tax rates and future macroeconomic growth. (C) 2019 Elsevier B.V. All rights reserved.