The Impact of Corporate income Tax and Firm Size on Fixed Investment
محورهای موضوعی : International Journal of Finance, Accounting and Economics StudiesOmer Saeed 1 , Sidra Shafiq 2 , Khurram Shahzad 3
1 - Institute of Business & Management, University of engineering and technology, Pakistan
2 - Institute of Business & Management, University of engineering and technology, Pakistan
3 - Institute of Business & Management, University of engineering and technology, Pakistan
کلید واژه: Tangible assets, fixed investment, market capitalization, income taxes,
چکیده مقاله :
This paper is an attempt to analyze the impact of income taxes and market capitalization on fixed investment (investment in tangible assets) by manufacturing companies listed on KSE. This paper basically examines that how corporate income taxes affect fixed investment by reducing cash flow available for a firm to invest and how the firm size in the lights of market capitalization affects fixed investment by manufacturing companies. As market capitalization leads to development and due to this development investment opportunities increase. Estimation is based on pooled regression by employing fixed effect model. The results of the study show that there is positive impact of market capitalization and fixed investment while there is negative impact of income taxes and fixed investment by manufacturing companies.
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