earticle

영어

This study develops a model to estimate the corporate marginal tax rates(MTR) of firms with net operating loss(NOL) carryforwards. Similar to the MTR measure developed in Shevlin(1990), the MTR measure used in this study reflects the present value of ￦１ of tax payable on additional income based on an estimate of the length of time that firms will be able to avoid paying taxes using NOL carryforwards. Several scenarios are presented to illustrate this definition and to analyze the impact of both the rules allowing a 5-year carryforward of NOL and future taxable incomes on MTR. An empirical procedure to estimate the MTR is performed on the sample firms selected from the KIS-FAS database. The results presented in this paper indicate that the MTR measure used in this study is a reasonable proxy for MTR.