We contribute to the empirical literature on the relationship between corporate taxes and investment. We exploit the … capital spending of Belgian corporations, we focus on the indirect effect of taxes on investment via their impact on free cash …-flow. We use the systematic variation of the cash-flow sensitivity of investment between small and medium versus large firms to …

income taxation on investment in case of binding and non-binding financial constraints. By employing two different sample … average tax rate to measure liquidity outflow through taxation that corporate taxation affects investment through changing … error-correction models. -- Investment cash flow sensitivity ; financial constraints , taxation ; effective average tax rate …

This Working Paper assesses the impact on investment of a reduction in corporate taxes and the impact on employment … (1967), we estimate an investment function, which depends on the user cost of capital, one of whose determinants is the … short and long-term effects on investment in machinery and equipment. While the user cost of capital declines 0.9 percent …