This paper examines the intertemporal effect of corporate income taxation on the investment behavior of a firm that … the corporate profit tax rate initially reduces investment, but the effect is reversed over time as the firm adjusts its …

We demonstrate that firms' investment and job creation are influenced by shareholder taxes on capital gains and … dividend. More importantly, the relation between shareholder taxes and firms' investment and job creation varies with financial … constraint that firms face. Less financially constrained firms show larger increases in capital investment than more financially …