Using tax return data to simulate corporate marginal tax rates

John R. Graham Lillian F. Mills   Abstract We document that simulated corporate marginal tax rates based on financial statement data (Shevlin 1990 and Graham 1996a) are highly correlated with simulated rates based on corporate tax return data. We provide algorithms that can be used to estimate the book or tax simulated rates when they are not available. We find that the simulated book marginal tax rate does a better…
D. Richard Mead Jr. Family Professor of Finance, Fuqua School of Business, Duke University, USA
From University of Texas at Austin - McCombs School of Business, USA
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