The effects and economic consequences of cutting R&D tax incentives

• 作者: Huan-Yi Li Ming-Chin Chen
• 来源期刊: 中国会计学刊:英文版
• 学科: 经济
• 关键词: R&D CREDIT rate R&D INVESTMENT FIRM VALUE
• 年，卷（期）: 2018,（4）
• 页码范围: 367-384
• 页数: 18页
• 分类号: F812.42

摘要

Research has documented the stimulating effect of R&D tax credits on R&D expenditure when enacting an R&D tax credit or raising the credit rate. However, the potential adverse effects and consequences of reducing R&D tax incentives remain unexamined. Using a cut in R&D tax incentives in Taiwan,we document the adverse effect of reducing the R&D credit rate on corporate R&D expenditure. The reduced R&D credit rate has a negative impact on the relation between corporate R&D expenditure and firm value. Our results highlight the adverse effects and economic consequences of reducing R&D tax incentives in an emerging economy.