International Journal of Accounting, Auditing and Taxation

International Journal of Accounting, Auditing and Taxation ISSN 2143-5572 Vol.  1 (1) pp. 017-019, October, 2014.  © International Scholars Journals

Full Length Research Paper

Corporate assessment, speculation and efficiency: A firm level estimation

*Richard Ford, Woodrow Cater and E. A Jackson

Department of Accounting, School of Business Administration, Arizona State University, Arizona.

E-mail: [email protected]

Accepted 22 September, 2014

Abstract 

This paper analyses how corporate taxes can affect investment and productivity. To address this question the paper uses data from a set of 42 developing countries taken from the World Bank Business Environment Surveys and examines whether firms with different sizes are affected differently by taxation. We extend the analysis that has been carried out relating tax rates to investment into the analysis of the impact of taxation on total factor productivity. Investment and productivity are shown to respond negatively to an increase in the corporate tax rate. These effects are stronger in bigger firms.

Key words: Taxation, investment, total factor productivity.