Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241785 
Year of Publication: 
2018
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 11 [Issue:] 4 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2018 [Pages:] 367-384
Publisher: 
Elsevier, Amsterdam
Abstract: 
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.
Subjects: 
R&D credit rate
R&D investment
Firm value
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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