Using tax return data to simulate corporate marginal tax rates

• 成果类型: Article
• 署名作者: Graham, John R.; Mills, Lillian F.
• 署名单位: Duke University; National Bureau of Economic Research; University of Texas System; University of Texas Austin
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2007.10.001
• 发表日期: 2008
• 关键词: off-balance-sheet; taxable income; Cash flows; earnings; debt; FIRMS

摘要

We document that simulated corporate marginal tax rates based on financial statement data [Shevlin. T., 1990. Estimating corporate marginal tax rates with asymmetric tax treatment of gains and losses. The Journal of the American Taxation Association 11, 51-67; Graham, J., 1996a. Debt and the marginal tax rate. Journal of Financial Economics 41, 41-73] are highly correlated with simulated rates based on corporate tax return data. We provide algorithms that can be used to estimate the book or tax simulated rates when they are not available. We find that simulated book marginal tax rate does a better job of explaining financial statement debt ratios than does the analogous tax return variable and discuss how the book-simulated rate is likely to be an appropriate measure in settings with global, long-term considerations. (C) 2007 Elsevier B.V. All rights reserved.