The Analytical Review of Foreign Studies on the Impact of Taxation on Corporate Investment

Abstract

The article provides an overview of foreign studies, mainly American ones, on the impact of tax policy on corporate investment. The research revealed the positive impact of maneuvering tax rates and tax incentives on investments in the corporate sector. At the macro level, special attention is paid to the Laffer curve and its modern applications. The possible use of the King - Fullerton model, as well as the active use of regression analysis in its various variations, are analyzed at the micro level. Besides, the taxation of income from investors' capital, including taxes on dividends, capital gains, and income from bonds are the ussies under analysis. The article also pointed out the complexity of tax systems in most countries, the importance of tax competition between different countries, the impact of tax policy on the structure as well as the cost of capital of companies. The authors identify the areas for further research at the macro and micro levels, emphasizing the lack of such research for developing countries and the need for the study of «natural experiments».