Author :
Abstract
Studies of tax policy and investment have been substantial in business finance and macroeconomic research. Countries make extensive use of tax policy to promote investments. Income & profit taxes and social security contributions are main direct taxes which are expected to be influential on investments also in context of newly established firms. This paper aims to analyze the effect of direct taxes on newly established firms in Turkey between the years 1985-2015 using Granger Causality Test and linear simple regression. Results indicate that, increases both in income & profit taxes and in social security contributions have significant negative effect on newly established firms in Turkey for 1985-2015 period.
Keywords
Abstract
Studies of tax policy and investment have been substantial in business finance and macroeconomic research. Countries make extensive use of tax policy to promote investments. Income & profit taxes and social security contributions are main direct taxes which are expected to be influential on investments also in context of newly established firms. This paper aims to analyze the effect of direct taxes on newly established firms in Turkey between the years 1985-2015 using Granger Causality Test and linear simple regression. Results indicate that, increases both in income & profit taxes and in social security contributions have significant negative effect on newly established firms in Turkey for 1985-2015 period.
