Tax Behavior and Investment Behavior of Corporate Managers

This book analyses the influence of tax behavior on investment behavior of corporate managers in Benin. The paper applies the generalized method of moments (GMM) to dynamic panel data. The sample used covers 21 firms, i.e. 11 banks for the period from 2011 to 2020 and 10 DFSs for the period from 2016 to 2021. It is found that investment behavior is most positively affected by the tax saving due to the deduction of depreciation allowances on economic assets (EIDDAAE), then by corporate income tax (CIT) and finally by debt (DEBT); and negatively by equity (EQUITY) and past investment (INVESTMENT(1)). This book makes a valuable contribution to the existing literature by identifying the main determinants of investment behavior, notably the positive effect of tax savings due to the deduction of depreciation on economic assets.

Autorentext

Stanislas T. Médard D. C. Agossadou Researcher at the Faculty of Economics and Management (FASEG), University of Abomey-Calavi (UAC), Benin.