Economic Reforms and Market Outcomes over Time

Taxation is a significant cost borne by firms, which affects firms’ decision-making behavior regarding the available choices on the magnitude and structure of output, disposal of net profit, direction of capital investment, among many other things. Thus, reducing the corporate tax burden has become a powerful motivational force in corporate conduct. Indeed, corporate tax management has emerged as an important financial strategy desired by shareholders to improve firm value. Expert accountants are hired by corporations for this purpose.