Corporate Tax Reforms and Firm-Level Decisions: Long-Term Impacts on Investment, Employment, and Economic Growth

This study looks at how corporate tax reforms are connected to the investment decisions made by firms, while also considering other important financial factors like profitability, firm size, leverage, and liquidity. It is generally believed that when corporate tax rates are reduced, firms are likely to invest more because they have more funds available. However, in reality, investment decisions are not always that straightforward and may depend on several other factors. To understand this better, the study uses financial data collected from secondary sources for a selected group of companies over a period of time. Based on this data, variables such as return on assets (ROA), firm size, leverage, liquidity, and investment have been analysed using simple statistical tools like descriptive statistics, correlation, and regression. The results show that corporate tax reforms do not have a strong or direct impact on investment decisions. Among all the variables, firm size appears to have a more noticeable influence, while profitability, leverage, and liquidity do not show a clear individual effect. Overall, the study suggests that firms consider multiple factors before making investment decisions, and the impact of tax reforms alone may not be as strong as often expected.