A Study on the Association of Undistributed Profit Tax and Equipment Investment and R&D Expenditure

• Main Authors: SHIAU, YU-CHIAU, 蕭語喬
• Other Authors: YANG,YE-CHENG
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/zsz9nf

碩士 === 東吳大學 === 會計學系 === 106 === The purpose of this study is to investigate the relationship between the retained earnings of listed companies in Taiwan and the research and development expenditures and equipment investment. It is found that retained earnings under the system of undistributed profit tax have a negative correlation with equipment investment and research and development expenditures. It means that when the government implements undistributed retained earnings, it still has influence on the retention of self-owned funds, equipment investment, and R&D expenditure. More specifically, the implementation of the system of undistributed profit tax is not only detrimental to the accumulation of the company’s own capital, but may also increases incentives for borrowing, and hence reduces the efficiency of equipment investment and R&D expenditure.