Title

A study on R&D expenditure decisions in developing economies: Tax incentives and earnings

Date of Publication

2016

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Defense Panel Member

Cynthia P. Cudia
Arnel Onesimo O. Uy

Abstract/Summary

The significant economic externalities of private companies performing R&D justify the provision of special tax incentives, even in developing economies. We provide evidence on the impact of tax incentives and financial constraints on corporate R&D expenditure decisions. Exploiting cross-country differences in Malaysia, Indonesia and the Philippines, we appraise the impact and cost-effectiveness of the R&D tax incentives implemented. We find, for 275 Malaysian firm- years, 68 Indonesian firm-years and 68 Philippine firm-years, that R&D tax incentives of Malaysia have a positive impact on the level of R&D spending and are cost-effective as its credit system induces, on average, $2.005 of additional R&D spending per dollar of taxes forgone. Consistent with the R&D investment model, providing tax incentives in the form of tax credit will decrease financial constraints that may limit the total investments made, and allow more R&D projects to be undertaken. This evidence has important implications for governments to adopt a similar tax policy providing constant incentives that can encourage private R&D investments

Abstract Format

html

Language

English

Format

Print

Accession Number

TU18991

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

68, [17] leaves : illustrations (some color) ; 28 cm. + 1 computer disc ; 4 3/4 in.

Keywords

Research and development tax credit; Tax incentives

This document is currently not available here.

Share

COinS