Changes in corporate effective tax rates over the past 25 years

Scott Dyreng; Michelle Hanlon; Edward L. Maydew; Jacob R. Thornock

doi:10.1016/j.jfineco.2017.04.001

← Search

Journal of Financial Economics Vol. 124 No. 3 2017

Changes in corporate effective tax rates over the past 25 years

Scott Dyreng¹; Michelle Hanlon²; Edward L. Maydew³; Jacob R. Thornock⁴

¹ Duke University · ² Massachusetts Institute of Technology · ³ Flagler College · ⁴ Brigham Young University

Abstract

We investigate systematic changes in corporate effective tax rates over the past 25 years and find that effective tax rates have decreased significantly. Contrary to conventional wisdom, the decline in effective tax rates is not concentrated in multinational firms; effective tax rates have declined at approximately the same rate for both multinational and domestic firms. Moreover, within multinational firms, both foreign and domestic effective rates have decreased. Finally, changes in firm characteristics and declining foreign statutory tax rates explain little of the overall decrease in effective rates.

DOI: 10.1016/j.jfineco.2017.04.001
Volume: 124
Issue: 3
Pages: 441-463
Language: en
Sources: crossref bibtex:phds-export.bib openalex

Changes in corporate effective tax rates over the past 25 years

Abstract

Cite