scholarly journals The Analytical Review of Foreign Studies on the Impact of Taxation on Corporate Investment

2021 ◽  
Vol 12 (4) ◽  
Author(s):  
Olga Belomyttseva
Keyword(s):  
Tax Policy ◽  
Positive Impact ◽  
Corporate Investment ◽  
Capital Gains ◽  
Tax Rates ◽  
Natural Experiments ◽  
Analytical Review ◽  
Micro Level ◽  
The Cost ◽  
The Impact

The article provides an overview of foreign studies, mainly American ones, on the impact of tax policy on corporate investment. The research revealed the positive impact of maneuvering tax rates and tax incentives on investments in the corporate sector. At the macro level, special attention is paid to the Laffer curve and its modern applications. The possible use of the King - Fullerton model, as well as the active use of regression analysis in its various variations, are analyzed at the micro level. Besides, the taxation of income from investors' capital, including taxes on dividends, capital gains, and income from bonds are the ussies under analysis. The article also pointed out the complexity of tax systems in most countries, the importance of tax competition between different countries, the impact of tax policy on the structure as well as the cost of capital of companies. The authors identify the areas for further research at the macro and micro levels, emphasizing the lack of such research for developing countries and the need for the study of «natural experiments».

scholarly journals Did the Introduction of Carbon Tax in Australia Affect Housing Affordability?

2013 ◽  
Vol 869-870 ◽  
pp. 840-843
Author(s):  
Xin Janet Ge
Keyword(s):  
Risk Factors ◽  
Supply Chain ◽  
Energy Consumption ◽  
Tax Policy ◽  
Carbon Tax ◽  
Housing Affordability ◽  
Greenhouse Emissions ◽  
Pricing Scheme ◽  
The Cost ◽  
The Impact

The Australian carbon pricing scheme (carbon tax) was introduced and became effective on 01 July 2012. The introduction of the carbon tax immediately increases the cost of electricity to a number of industries such as manufacturing and construction. Households were also affected as a result of these costs been passed through the supply chain of the affected industries. The carbon tax policy was introduced to addresses greenhouse emissions and energy consumption in Australia. However, the carbon tax policy may have introduced a number of economic risk factors to the Australian housing market, in particular the impact of housing affordability.

scholarly journals CONCEPTUAL BASIS OF TAX POLICY FORMATION IN THE GLOBALIZATION CONDITIONS

2020 ◽  
Vol 6 (2) ◽  
pp. 81-92 ◽  
Author(s):  
Svetlana Khalatur ◽  
Olena Trokhymets ◽  
Oleksandr Karamushka
Keyword(s):  
Tax Policy ◽  
Direct Investment ◽  
Capital Gains ◽  
Tax Revenue ◽  
The European Union ◽  
Tax System ◽  
Tax Rate ◽  
Capital Gains Taxes ◽  
The Impact ◽  
The Eu

The purpose of the article is to analyze the tax systems of the countries of the European Union and Ukraine, the impact of individual indicators of the tax system on the economies development, study the possibility of applying the accumulated experience. The subject-matter of the study is the methodological and conceptual foundations of the tax policy-making process of the EU and Ukraine. Methodology. Based on the analyzed scientific literature on tax policy formulation of countries, the methodological principles of this study provide for the joint application of a set of well-known general scientific and special methods of research in economics. In particular, the dialectical method, the method of scientific abstraction, the method of systematic analysis, economic and mathematical modeling were used. Results. The article analyzes the individual indicators of the tax system functioning of 28 countries of the European Union and Ukraine; and the impact of these indicators on the economy development. In particular, the following indicators were studied: customs and other import duties, firms expected to give gifts in meetings with tax officials; firms that do not report all sales for tax purposes; firms visited or required meetings with tax officials; labor tax and contributions; net taxes on products; other taxes; other taxes payable by businesses; profit tax; tax payments; tax revenue; taxes on exports; taxes on goods and services; taxes on income, profits and capital gains; taxes on income, profits and capital gains; taxes on international trade; time to prepare and pay taxes; total tax rate. The dependence of foreign direct investment on profit tax, tax revenue; taxes on income, profits and capital gains; time to prepare and pay taxes and total tax rate have been studied. The study shows that, on average, tax revenue affects foreign direct investment, net inflows with the same strength as time to prepare and pay taxes, but almost twice as much as taxes on income, profits and capital gains. Practical implications. The article contains a set of tools and rules for reviewing approaches, guidelines and criteria for the effectiveness of Ukraine's tax policy in line with the global development concept. Value / originality. The conceptual criteria for the formation and implementation of the tax policy of the state are determined, it is carried out the comparative analysis of the tax policy of Ukraine and the EU countries within the framework of the European economic integration, which occurs simultaneously with the globalization of the world economy.

scholarly journals How leverage can improve performance

2020 ◽  
Vol 83 ◽  
pp. 01031
Author(s):  
Miroslav Kmeťko ◽  
Eduard Hyránek
Keyword(s):  
Risk Premium ◽  
Expected Returns ◽  
Tax Rates ◽  
Expected Return ◽  
Tax Rate ◽  
Equity Ratio ◽  
Risk Free Rate ◽  
The Cost ◽  
Managed Portfolios ◽  
The Impact

One of the best-known Capital Asset Pricing Model (CAP/M) provides us with a methodology for measuring the relationship between the risk premium and the impact of leverage on expected returns. However, this model is not used only to value the cost of capital but also to evaluate the performance of managed portfolios. We will test how the expected return changes in percent by changing the debt-equity ratio and the tax rate based on following assumptions: market return 7%, risk-free rate of return 1% and beta 1.2. These assumptions will be constant and we will change the debt-equity ratio and tax rate. Based on these results, it is clear that the change in profitability varies, in relation to the change of the DE ratio by one tenth. As for changes I n tax rates, changes in expected profitability are not entirely in direct proportion to these changes.

scholarly journals Designing waste management systems to meet circular economy goals: The Italian case

2021 ◽  
Author(s):  
Giacomo Di Foggia ◽  
Massimo Beccarello
Keyword(s):  
Waste Management ◽  
Circular Economy ◽  
Solid Waste Management ◽  
Positive Impact ◽  
Waste To Energy ◽  
Municipal Solid Waste Management ◽  
Italian Case ◽  
Novel Approach ◽  
The Cost ◽  
The Impact

Waste management capacity plays a prominent role in complying with circular economy goals, such as reducing municipal waste disposal by landfilling to 10%. We first analyze the imbalance in municipal solid waste management across Italy by estimating the quantities of waste to be treated using technologies different from those currently in use. Subsequently, we estimate the impact that a system compliant with circular economy goals would have on the cost of waste management. Our empirical analyses are based on an econometric method. The results suggest that Italy could reduce the use of landfill by 11.5%, resulting in a 13% reduction in mechanical-biological treatment. The waste-to-energy capacity would rise by 4.6% compared to the current situation, while the organic fraction treatment capacity would increase by 8.3%. Besides the positive impact on the environment, the potential annual savings on the cost of waste management could reach 0.07%, or 0.27% when the phase corresponding to treatment and disposal is considered. We provide insights into the design of more efficient national waste management plans using a novel approach based on best performers.

scholarly journals THE EFFECT OF MANAGERIAL OVERCONFIDENCE ON CORPORATE INVESTMENT

2020 ◽  
Vol 10 (1) ◽  
pp. 49
Author(s):  
Mochamad Ali Fudin Al Islami ◽  
Muhammad Madyan
Keyword(s):  
Maximum Likelihood ◽  
Positive Impact ◽  
Stock Exchange ◽  
Likelihood Estimation ◽  
Corporate Investment ◽  
Least Square ◽  
Analysis Method ◽  
Ordinary Least Square ◽  
Managerial Overconfidence ◽  
The Impact

The research aims to analyze the impact of managerial overconfidence on corporate investment (investment scale, overinvestment and underinvestment) using companies listed in Indonesia’s Stock Exchange in 2012-2018 as a sample. The analysis method used Ordinary Least Square and robustness test used Maximum Likelihood  Estimation. The result shows that managerial overconfidence has a significantly positive impact on the corporate investment scale. It means that managerial overconfidence makes overinvestment problem more severe (more inefficient) and underinvestment problem less severe (more efficient).

Income diversification and cost-efficiency of Vietnamese banks

2020 ◽  
Vol 16 (5) ◽  
pp. 623-643
Author(s):  
Phong Hoang Nguyen ◽  
Duyen Thi Bich Pham
Keyword(s):  
Cost Efficiency ◽  
Positive Impact ◽  
Banking System ◽  
Structural Diversity ◽  
Estimation Methods ◽  
Income Diversification ◽  
Content Type ◽  
Dea Analysis ◽  
The Cost ◽  
The Impact

PurposeThe study examines the impact of income diversification on cost efficiency of Vietnamese commercial banks over the period 2005–2017.Design/methodology/approachIncome diversification indicators are designed based on measures of diversifying loan portfolio. Besides the traditional model, we use the Fractional Regression to estimate the model with dependent variables defined on the unit interval.FindingsThrough the two-stage DEA analysis, we find that the income diversification has a positive impact on the cost efficiency of banks. In addition, this impact is stronger for unlisted banks and in the phase of banking system ongoing restructuring.Originality/valueThe use of a variety of income diversification measures and estimation methods for models with bounded dependent variable has provided a reliable empirical evidence of the advantages of implementing a strategy on structural diversity of both interest and non-interest income in the emerging banking markets such as Vietnam.

Fiscal reform: a computable general equilibrium (CGE) analysis for the Kingdom of Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elizabeth Louisa Roos ◽  
Philip David Adams
Keyword(s):  
Saudi Arabia ◽  
Computable General Equilibrium ◽  
Tax Policy ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Policy Simulation ◽  
Potential Harm ◽  
Content Type ◽  
The Cost ◽  
The Impact

Purpose This paper aims to provide a quantitative assessment of the broad economic effects of tax policy reform in the Kingdom of Saudi Arabia (KSA). Design/methodology/approach Using a dynamic computable general equilibrium (CGE) model of the KSA, three simulations are run. The first simulation is the baseline simulation, which generates growth paths of the Saudi economy in the absence of tax reform. In developing the baseline simulation, this study incorporates forecasts from the International Monetary Fund. The remaining simulations are policy simulations. A policy simulation deviates from the baseline simulation in response to a policy change. In the first policy simulation, this study introduces a value-added tax (VAT) that generates SAR 35bn. This study assumes budget neutrality with the additional tax revenue transferred to households via a lump sum payment. In the second policy simulation, this study introduces a corporate income tax that generates SAR 35bn. This study then calculates and compares the distortion these taxes introduce into the economy. Findings This study finds that although the introduction of new taxes increases government tax revenue, markets are distorted lowering efficiency and production. An introduction of VAT increases the cost of consumption relative to the cost of production. As a consequence, the real cost of labour increases lowering employment in the short run. Employment moves to the baseline, as wages adjust capital and real gross domestic product (GDP) is below base throughout the simulation period. The second simulation is an increase in the corporate tax rate with lowers the post-tax rates of return investors receive. This simulation shows that the negative impact on investment, capital and GDP is larger with the introduction of a corporate tax than with the VAT. Research limitations/implications Literature focusing on tax policy reform in the Gulf Cooperation Council and, specifically, Saudi Arabia is limited. This paper contributes to the literature by focusing on the following: understanding the impact and mechanisms through which changes in taxation impact the economy more generally; understanding the potential harm caused to allocative efficiency and production due to taxes; and ways in which fiscal reform might complement other reforms such as efforts to diversify the economy, labour market and energy price reforms. This improves the information base available to policymakers charged with designing an optimal tax system that meets all future requirements of a country such as the KSA. Originality/value The authors developed and applied a CGE model for the KSA to analyse the impact of VAT and corporate tax on the Saudi economy. To the best of the authors’ knowledge, there are no recent CGE models for Saudi Arabia that have been used for tax policy or quantifying the potential harm to the economy when new taxes are introduced.

Information risk, cost of equity and stock returns: evidence from Iranian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Abdollahi ◽  
Mehdi Safari Gerayli ◽  
Yasser Rezaei Pitenoei ◽  
Davood Hassanpour ◽  
Fatemeh Riahi
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Stock Exchange ◽  
Cost Of Equity ◽  
Content Type ◽  
Information Risk ◽  
The Cost ◽  
The Impact

Purpose A long history of literature has considered the role of information risk in determining the cost of equity. The question that has remained unanswered is whether information risk plays any systematic role in determining the cost of equity. One of the fundamental decisions that every business needs to make is to assess where to invest its funds and to re-evaluate, at regular intervals, the quality of its existing investments. The cost of capital is the most important yardstick to evaluate such decisions. Greater information is associated with the lower cost of capital via mitigating transaction costs and/or reducing estimation risk and stock returns. This study aims to investigate the impact of information risk on the cost of equity and corporate stock returns. Design/methodology/approach The research sample consists of 960 firm-year observations for companies listed on the Tehran Stock Exchange from 2009 to 2018. The research hypotheses were tested using multivariate regression models based on panel data. Findings The results reveal that information risk has a significant positive impact on the firm’s cost of equity. However, the impact of information risk on stock returns is not statistically significant. Originality/value To the best of the knowledge, the current study is almost the first of its kind in the Iranian literature which investigates the subject matter; therefore, the findings of the study not only extend the extant theoretical literature concerning the information risk in developing countries including the emerging capital market of Iran but also help investors, capital market regulators and accounting standard setters to make timely decisions.

The Socioeconomic Return to Primary Schooling in Victorian England

2006 ◽  
Vol 66 (4) ◽  
pp. 1026-1053 ◽  
Author(s):  
JASON LONG
Keyword(s):  
School Attendance ◽  
Occupational Class ◽  
Victorian England ◽  
Market Outcomes ◽  
Primary Schooling ◽  
Micro Level ◽  
The Cost ◽  
The Impact ◽  
Positive Effect ◽  
Level Analysis

In this article I provide a micro-level analysis of primary schooling in Victorian England. Using a new dataset of school-age males linked between the 1851 and 1881 population censuses, I examine the determinants of childhood school attendance and the impact of attendance on adult labor market outcomes. I find that schooling had a positive effect on adult occupational class and that the associated wage gains were likely to have outweighed the cost of schooling. However, this effect was small relative to father's class, and the effect of education on earnings appears to have been small relative to modern results.

scholarly journals The Incentive Effects of Marginal Tax Rates: Evidence from the Interwar Era

2014 ◽  
Vol 6 (3) ◽  
pp. 242-281 ◽  
Author(s):  
Christina D. Romer ◽  
David H. Romer
Keyword(s):  
Time Series ◽  
Income Tax ◽  
Positive Impact ◽  
Tax Rates ◽  
Marginal Rate ◽  
Taxable Income ◽  
Incentive Effects ◽  
Marginal Tax Rates ◽  
The Impact ◽  
Section Analysis

This paper uses the interwar United States as a laboratory for investigating the incentive effects of marginal income tax rates. We examine the impact of the large changes in rates in this period on taxable income using time-series/cross-section analysis of data by small slices of the income distribution. We find that the effect operated in the expected direction but was economically small, and that it is precisely estimated and highly robust. We also find suggestive time-series evidence of a positive impact of marginal rate cuts on business formation, but no evidence of an important effect on other indicators of investment. (JEL D31, H24, H31, M13, N42)

Sign in / Sign up

Export Citation Format

Share Document