01546cas a2200241 a 4500 AALejournalIMF002215 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875720 1018-5941 BD-DhAAL BD-DhAAL Palomba, Geremia. Firm Investment, Corporate Finance, and Taxation / Geremia Palomba. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (45 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the intertemporal effect of corporate income taxation on the investment behavior of a firm that faces imperfect capital markets. It shows that when capital markets are imperfect, the optimizing firm goes through different phases of growth. In this dynamic setting, the effect of a corporate tax on profits varies over time. An increase in the corporate profit tax rate initially reduces investment, but the effect is reversed over time as the firm adjusts its financing policy to the new tax rate. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2002/237 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/237/001.2002.issue-237-en.xml IMF e-Library