This paper examines the effect of tax incentives in the form of bonus depreciation on the quality of investment. Using … establishments, we show that bonus depreciation significantly lowers the quality of investment. The average quality of investments …, measured by the responsiveness of future sales to current investment, reduces by 22.6-34.6%. This adverse effect of tax …

This paper examines the effect of tax incentives in the form of bonus depreciation on the quality of investment. Using … establishments, we show that bonus depreciation significantly lowers the quality of investment. The average quality of investments …, measured by the responsiveness of future sales to current investment, reduces by 22.6–34.6%. This adverse effect of tax …

Amid growing globalization, many countries have offered significant tax incentives to attract corporate investment …. Prior research studies the role such tax incentives play in firms' location and investment choices. However, we have limited … reductions in aggregate investment of U.S. firms flowing to targeted state aid countries, relative to other countries in the …

data and triple-difference estimators, we find that this dividend tax cut affects allocation of corporate investment. Cash …-constrained firms increase investment after the dividend tax cut relative to cash-rich firms. Reallocation is stronger among closely … and by higher dividends in cash-rich firms after the tax cut. The heterogeneous investment responses imply that the …

between countries generates positive investment spillover, intra-firm production linkages predict negative spillover. Using … subsidiary-level data and exogenous corporate tax hikes, we find that local business units cut investment by 0.4% for a 1 …