Changes in corporate effective tax rates over the past 25 years

Published

Journal Article

© 2017 Elsevier B.V. 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.

Full Text

Duke Authors

Cited Authors

  • Dyreng, SD; Hanlon, M; Maydew, EL; Thornock, JR

Published Date

  • June 1, 2017

Published In

Volume / Issue

  • 124 / 3

Start / End Page

  • 441 - 463

International Standard Serial Number (ISSN)

  • 0304-405X

Digital Object Identifier (DOI)

  • 10.1016/j.jfineco.2017.04.001

Citation Source

  • Scopus