This paper investigates whether an increase in the R&D tax credit rate stimulates firms' incremental R&D spending. We find that the increase in the credit rate has a positive effect on the R&D spending of high-tech firms with taxable status, but does not have the same positive effect on non-high...

This study examines the role of managers’ political campaign contributions in relation to their firms’ tax benefits. The study differs from extant public choice literature that has not examined the role of self-interested agents within the firm. Using a major tax law change, we find that...