for the purpose of studying together.

Foundations and TrendsR
in
Finance
Vol. 1, No. 7 (2006) 573–691

c 2006 J.R. Graham
DOI: 10.1561/0500000010

Abstract
This paper reviews domestic and multinational corporate tax research.
For each topic, the theoretical arguments explaining how taxes can
affect corporate decision-making and firm value are reviewed, followed
by a summary of the related empirical evidence and a discussion of
unresolved issues. Tax research generally supports the hypothesis that
high-tax rate firms pursue policies that provide tax benefits. Many
issues remain unresolved, however, including understanding whether
tax effects are of first-order importance, why firms do not pursue tax
benefits more aggressively, and whether corporate actions are affected
by investor-level taxes.