Replication data for: The Effect of Corporate Taxation on Investment and Financial Policy: Evidence from the DPAD
Principal Investigator(s): View help for Principal Investigator(s) Eric Ohrn
Version: View help for Version V1
Name | File Type | Size | Last Modified |
---|---|---|---|
data | 10/26/2021 10:28:AM | ||
LICENSE.txt | text/plain | 14.6 KB | 10/13/2019 01:18:AM |
Project Citation:
Ohrn, Eric. Replication data for: The Effect of Corporate Taxation on Investment and Financial Policy: Evidence from the DPAD. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114661V1
Project Description
Summary:
View help for Summary
This study estimates the investment, financing, and payout responses to variation in a firm's effective corporate income tax rate in the United States. I exploit quasi-experimental variation created by the Domestic Production Activities Deduction, a corporate tax expenditure created in 2005. A 1 percentage point reduction in tax rates increases investment by 4.7 percent of installed capital, increases payouts by 0.3 percent of sales, and decreases debt by 5.3 percent of total assets. These estimates suggest that lower corporate tax rates and faster accelerated depreciation each stimulate a similar increase in investment, per dollar in lost revenue.
Scope of Project
Subject Terms:
View help for Subject Terms
investment;
capital structure;
Domestic Production Activities Deduction;
corporate taxation
JEL Classification:
View help for JEL Classification
D22 Firm Behavior: Empirical Analysis
D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
H25 Business Taxes and Subsidies including sales and value-added (VAT)
H32 Fiscal Policies and Behavior of Economic Agents: Firm
D22 Firm Behavior: Empirical Analysis
D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
H25 Business Taxes and Subsidies including sales and value-added (VAT)
H32 Fiscal Policies and Behavior of Economic Agents: Firm
Geographic Coverage:
View help for Geographic Coverage
United States
Time Period(s):
View help for Time Period(s)
2014 – 2018
Data Type(s):
View help for Data Type(s)
observational data
Methodology
Data Source:
View help for Data Source
IRS Statistics of Income, Standard and Poor's Compustat North American Annual Fundamentals
Unit(s) of Observation:
View help for Unit(s) of Observation
Publicly Traded Companies,
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.