Taxation and Research Methodology Assignment

The provided document is a collection of resources and articles related to taxation and research methodology. It includes publications from reputable sources such as Brookings Institution, Tax Notes, and BCG, discussing topics like corporate tax reform, succession taxes on family firms, and the impact of US tax reform on corporate strategy. The assignment also touches upon research philosophy and methodology, providing a tutorial on ethical considerations in research. This document is suitable for students looking to understand taxation and research methods in academic or professional contexts.

Impact of the US Tax
Reform on Corporate
Valuations

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................2
Background.............................................................................................................................2
Overview................................................................................................................................2
Aim and Objectives................................................................................................................3
Research Questions................................................................................................................3
Rationale.................................................................................................................................4
Significance of Research Study..............................................................................................4
Research structure..................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................17
Research approach................................................................................................................17
Research philosophies..........................................................................................................17
Research design....................................................................................................................18
Sampling...............................................................................................................................18
Data collection......................................................................................................................19
Data analysis.........................................................................................................................19
Ethical consideration............................................................................................................20
Reliability and validity.........................................................................................................20
Research Limitation..............................................................................................................21
CHAPTER 4: DATA COLLECTION AND DATA ANALYSIS................................................22
DATA ANALYSIS..............................................................................................................22
CHAPTER 5: RECOMMENDATION AND CONCLUSION.....................................................32
RECOMMENDATION........................................................................................................32
CONCLUSION....................................................................................................................33
REFERENCES..............................................................................................................................34

EXECUTIVE SUMMARY
Examining various factors which affects the company valuation on which taxation plays the main
role in affecting the valuation of firm. Considering US tax rates, there have been several plans
and policies which are incorporated with making suitable reduction in the tax rates. Investors on
the other side, waiting for outcomes derived after these reforms in financial disclosure of firm. In
present study, there will be discussion based on US tax rate reforms affects the brand value of
industries. Researchers have been aimed at making suitable survey and study over the market and
on various industries for generating reliable information. It includes various arguments over the
US governmental plans and procedures. This research study will be based on quantitative
approaches on which researchers will conduct a survey in market or over industries as per
analysing issues and bring the analysed outcomes. Moreover, Interprevitism design of study has
been select by a researcher in relation with making the appropriate analysis over collected data
and representing the suitable justification over outcomes. In relation with data collection and
analysis requirements there have been selection of 20 professionals of various organisations such
as KPMG, Duff & Phelps and Ernst & Young. Moreover, they have been asked various open and
close ended questions on which they have presented their appropriate views and ideas which will
be helpful to researchers in terms of monitoring the issues in the business. Therefore, this
research study will be helpful as per analysing the wants and needs of corporate industries as per
managing the operations as well as suggesting them to make productive changes in organisations.
Overall, the experience of researchers after making study is that they have learned a framework
of taxation authorities in US and the current planning of government in terms of improving small
scale businesses.
1

CHAPTER 1: INTRODUCTION
TOPIC: “To identify impacts of US tax reforms on corporate valuation”
Background
Reduction and appreciation of tax rates affects the revenue generation as well as valuation
of entities. Considering US tax rates, there have been several plans and policies which are
incorporated with making suitable reduction in the tax rates. Investors on the other side, waiting
for outcomes derived after these reforms in financial disclosure of firm. Positively, it will be said
that government has planned to reduce these charges which will be helpful to industries as per
making satisfactory gains through operations. Many companies do not make payments to taxes
which in context with the reason that they do not left with any profit for their operational
activities after making payments to corporate taxes. Thus, on which it brings the negative impacts
on reduction in their corporate valuation. Share prices and brand image come in danger as there
have been huge reduction in numbers of investors as well as capital structure of firm.
In present study, there will be discussion based on US tax rate reforms affects the brand
value of industries. There will be various stages and elements that will bring an adequate analysis
over research issues and suggest suitable ways and techniques which will be assistive and helpful
to the professionals of various companies. They will be suggested to make appropriate taxable
payments and analyse reforms of the government in positive manner.
However, this research study will also highlight impacts of such reforms in their financial
disclosures. It will have impact in cash flows, discount rates as well as terminal value of a firm.
Therefore, in accordance with such variations, there will be suitable suggestions which were
being awarded to professionals with increasing efficiency of business as well as techniques to
retain investors on long-term basis. Thus, to examine the facts there will be influences of 20
professionals of KPMG, Duff & Phelps and Ernst & Young. They will be asked several questions
regarding US tax reforms and the changes they have observed in company valuation.
Overview
Researchers have been aimed at making suitable survey and study over the market and on
various industries for generating reliable information. It includes various arguments over the US
governmental plans and procedures. To develop a suitable analysis over market with considering
fund and operational requirements needs of industries. The impact of governmental plans and
2

policies affects revenue generation as well as operational activities in premises. Therefore, costs
levied over labour and material purchased by business in terms of making successive revenue
generation which in turn will have positive and negative impacts in the final outcomes.
It has been approached by US government in context with making suitable changes in the
taxation and present adequate charges over income generated by corporations. On the other side,
in consideration with manufacturing industries or other organisation, there will be requirement of
Research and Development expenses which bounds them to make huge expenditure over
producing innovative and unique products and services in market (The Impact of US Tax Reform
on Corporate Strategy, 2018). Their main aim is to generate higher consumers which results in
favourable operating gains which eventually helps in generating adequate investors on firm.
Reduction in taxes will help in restructuring their portfolio which will be attractive to
shareholders in fetching information regarding profitability and ability of a firm in making
suitable returns over the period.
Aim and Objectives
Aim: “To ascertain current US tax reforms and it affects corporate valuation”
Objectives:
 To identify the Current US tax Reforms and governmental policies
 To ascertain impacts of corporate tax rates in operating income of firm
 To identify current issues faced by industries in making taxable payments
 To suggest suitable methods in improving tax consideration as well as managing financial
requirements.
Research Questions
 What are the Current US tax Reforms and governmental policies?
 What are the impacts of corporate tax rates in operating income of firm?
 What are the current issues faced by industries in making taxable payments?
 What are the suitable methods in improving tax consideration as well as managing
financial requirements?
3

Rationale
Objective of researcher is for making suitable identification of all issues which are usually
faced by corporations while analysing requirements and making satisfactory changes in
operations. Companies are bound to make taxable payments over income generated by them
which reduces their profitability that affects in further operation of business such as dividend
payments, operating expenses etc.
What: Corporate taxes mainly affect profitability of industries which in turn reduces the
financial viabilities. Firms are making higher corporate tax payments which results in poor net
income after tax that will be used in making payments to equity holders. Therefore, these affects
in bringing lower returns to investors on their invested capital in industries (Gupta, Akhter and
Chaklader, 2017). Main expenses of business are based on performing research and development
that needs a higher utilisation of funds. It is in terms of developing and designing the products
according to consumer desired level.
Why: Higher tax rates will eventually affect the revenue generation as well as further
operational activities of an industry. Therefore, reforms in taxation are quite necessary as per
having suitable operational gains and management of operations. Expenses of manufacturing,
retailing and service industries are comparatively higher and requires huge capital investments for
operations (Special Report: Corporate Tax Reform, 2017). Thus, taxable payments may affect
revenue generation and which will be less beneficial to investors in terms of having satisfactory
returns on their invested capital in entity. In addition, such variation affects capital structure of
entity and reduces brand image and valuation in market.
How: Research study will be helpful to analyse the impacts of US tax reform and recent
governmental changes in the policies and procedures to charge corporate taxes. There will be
suitable variations in brand valuation of entities (Singh, 2017). Suggestive information will be
facilitating among professionals of various industries as per analysing such reforms and making
effective ascertainment of taxable payment made by organisation.
Significance of Research Study
Research study will elaborate all required needs and wants of business as per analysing
market, taxation policies of government as well as analysing its impacts on the internal
management of firm. Operational activities and efficiency of a business will be enhanced as per
4

developing suitable strategies and better management of Industrial practices in premises (Rouse,
2018). Capital allocation and decision making by professionals of an entity will have an impact
on reforms. Research analysis will be adequate in determination of various issues which affect the
business operations as well as corporate valuation.
Study will be ascertaining information relevant to current governmental plans and
regulations that will be favourable and unfavourable to business as per making suitable
operational changes. Identification of such changes in the rules and regulations will have post
positive as well as negative impacts in terms of raising the capital structure of an entity. These
effects in valuation and market price of company (RAJESHBHAI and MAHILA, 2018). US tax
rates reforms have been aimed at making economic changes in firm's financial stability and
capital collections. On the other side, impact of such changes will influence borrowing capacity,
valuation of assets as well as operating daily tasks of business.
Research structure
Thesis will be based on studying research issues on various elements. Each section in
research study will be helpful and adequate as per analysing results and making effective
operational gains to firm (Bagheri and et.al., 2017). Thus, to identify issues and make suitable
recommendations to professionals of entities the study is comprised with below listed framework
such as:
Chapter 1: Introduction
This chapter is a brief introductory analysis over governmental plans and policies which
help in reducing taxation rates levied over income generated by corporate industries. This section
of study has aim, objectives, rationale behind the research issues. It also defines the framework of
study. Therefore, the importance of this section is that it brings a framework among researchers
with performing suitable study and survey over the facts.
Chapter 2: Literature Reviews
This section of research study will be effective and eventually helpful as per
demonstrating views, ideas and thoughts of various authors. It will be helpful to researchers in
terms of retaining plethora of information regarding US taxation policies and current reforms
made by government (Schmera and et.al., 2017). Section is based on various merits and demerits
of issues which will help corporate agencies in analysing requirements and making suitable
5

changes as per improving business operations. Discussion will be based on various taxation
reforms and issues faced by industries in terms of valuation and disclosure of financials at the end
of period.
Chapter 3: Research Methodology
This research chapter consist of various methods, techniques and tactics to perform the
market analysis and make a suitable suggestion over the derived outcomes. This research study
will be based on quantitative approaches on which researchers will conduct a survey in market or
over industries as per analysing issues and bring the analysed outcomes (Shaw and et.al., 2017).
Thus, such results will be adequate in enhancing knowledge and skills of researchers for
outcomes. Methodology play a main role in making satisfactory framework which will help
researchers in making perfect coordination in conducting study.
Chapter 4: Data Collection and Data Analysis
In this section, there will be collection of plethora of information with the usefulness of
conducting surveys over market or on industries. The research will be based on identifying recent
US tax reforms as well as taxable payments made by them. There will be use of various
techniques of data collection such as primary and secondary (Pyatak and et.al., 2017). Sources
which have been studied and analysed by researchers which will be measured and analysed that
brings suitable suggestions. This section of study will be useful as concrete solution will be
derived from adequate sources.
Chapter 5: Recommendation and Conclusion
This chapter is based on the outcomes derived from data collection and analysis made by
researchers. It will bring suitable solutions and recommendations to professionals of various
industries in terms of making adequate changes in the operational practices (Gupta, Akhter and
Chaklader, 2017). There will be suggestions based on financial disclosure as well as analysis of
organisation which will be supportive to businesses in capital generation.
6

CHAPTER 2: LITERATURE REVIEW
Chapter is based on various analysing debates based on research issues. There will be
ascertainment of various operational activities as well as management of operations. This section
of research study will be effective and eventually helpful as per demonstrating views, ideas and
thoughts of various authors. It will be helpful to researchers in terms of retaining plethora of
information regarding US taxation policies and current reforms made by government. Section is
based on various merits and demerits of issues which will help corporate agencies in analysing
requirements and making suitable changes as per improving business operations. Discussion will
be based on various taxation reforms and issues faced by industries in terms of valuation and
disclosure of financials at the end of period (Singh, 2017). Thus, it comprises with various
thematic analysis based on various observations and acknowledgement of issues.
According to Stiglitz and Rosengard, (2015), US have strong Currency control all over
world which impacts over revenue generation as well as operational practices of industries in the
long run. It has been announced by the US government that they will reduce tax rates to 21% to
industries in terms of collecting revenue. Reduction in corporate tax rates will have positive
impact in making suitable disclosure of financial data set of an organisation. Therefore, 20%
reduction in tax rates will bring satisfactory gains to organisation. The main expenditures of
entity are based on making R&D which helps in designing the suitable products and services that
meets the satisfactory level of consumer. Hanlon, Lester and Verdi, (2015) stated that motive of
government is for developing the tactics and policies which is for reducing the tax rates to help
government and economy. Thus, due to these regard corporation will make payments to taxes and
which will be useful in generating government revenue. Moreover, it will affect in rising
economic level of local areas to improve domestic production.
According to Ahern, Daminelli and Fracassi, (2015), Reduction in tax rates will create
burden over corporate income. Therefore, impacts of such changes will affect the treatment of
corporate income that matches with treatment facilitated by trading partners. In relation with
partnership business, there will be requirement of adequate control over financial transactions
such as distribution of income as well as consideration of various allowances awarded by
organisation. Moreover, considering various reforms made by government which is aimed at
improving economic conditions of firm in a period. Determination of the financial needs of an
7

organisation is based on earning revenues and they distribute it among various sectors such as
making returns to investors, paying interest generation on loan as well as in production of
operational practices. Therefore, reduction will have positive impacts in increasing revenue
generation of entity.
Tsoutsoura, (2015) stated that most organisations do not make payments of taxes as they
proposed issues is that higher tax rates affect their revenue generation as well as profitability
which in turn eventually reduces their investors. Therefore, lower revenue disclosed by an
organisation will affect lower investors will be attracted towards business for investment purpose.
Thus, in relation with this, there will be less collection of capital funds that affects capital
structure and financial environment of entity in due period.
Theme 1: To identify the Current US tax Reforms and governmental policies.
As per views of Stiglitz and Rosengard, (2015), taxable reforms will affect revenue
generation as well as capital ascertainment of industries working in environment. However, US
are best known for the highest statutory corporate tax rates in the world. Therefore, there are
various industries which have been charged with the highest taxes that in turn affects their trade
practices in the market. Thus, identification of such reforms will be beneficial as all corporate
industries will make payments of taxes collected over revenue of entity.
Considering causes and reasons professionals of various industries brings among
government that they do not make taxable payments because it affects their revenue and
operational activities. They said that payments to taxes will affect their generated revenue which
results in improper disclosures of the financial statements. Therefore, such disclosures will affect
retaining the attention of investors in organisation. They found organisation in less profitable and
is not able to make the suitable payments or returns. Moreover, reduction in number of investors
in the firm will affect its valuation in market. Hanlon, Lester and Verdi, (2015) said that, US is
consistently reducing the corporate tax rates after WWII. It was 32% in 1952 in consideration
with all the federal tax revenue which ascertain the 6% GDP of that period. Thus, it can be said
that the corporate tax will be third largest sources of governmental revenue generation. Thus,
plans and policies made in these regards are considerably treated as adequate revenue source for
government. It is based on various tax regimes which is stated around the world that interact to
distort allocation of international investments. Thus, reduction in microeconomic level of
8

countries which reflect negative image of nation in world that will affect Foreign Direct
Investment (FDIs) in national boundaries. Thus, an international investors’ do not feel safe and
secure to make investments in the operations.
Ahern, Daminelli and Fracassi, (2015) stated that collection of revenue through cooperate
taxation will bring adequate stability in the economy. Thus, that will reciprocally affect balancing
GDP in the international market. It will be adequate and helpful techniques in reducing impacts
of global financial crisis over the nation. Moreover, reduction in corporate taxes will have
effective control over removing chances of repeating financial crisis as well as inflation in
market. Improved GDP rate will have appropriate control over domestic efficiency of nation.
Thus, that will be good for balancing employment level in economy.
Moreover, as per current legislative changes in the taxation policies of the US government
has had approached towards reducing corporate taxes. Therefore, it has been ascertained here that
the government planned to reduce tax at the rate of 21% corporations. Thus, that will be
profitable to businesses as per managing their share value in security market. Tsoutsoura, (2015)
said in relation with the summit of congress where the bill has been passed over federal marginal
tax rates to reduce it by the government at 21% from 35%. Therefore, there has been ascertaining
various legislation states limits which will be used by cooperate interest expenses as a fully
deductible tax shield. Thus, on which the interest deduction will be shielded by 30% over
earnings before interest, tax and dividends. Moreover, this approaches that such reformed and the
taxes will be levied over the earning till next 3 years. Thus, after that period there will be
legislation of taxes for 30% only over Earnings before interest and tax that is after 2022.
According to Stiglitz and Rosengard, (2015), Reforms created by the US government will
be helpful to the industries in terms of retaining the adequate amount of operating margin as well
as reduce the moderate debt to equity ratios. Therefore, which in turn will be helpful to the
industries in terms of gaining adequate gains which enhances their operating activities as well as
they will have sufficient amount funds for operations. Hanlon, Lester and Verdi, (2015) stated
that impacts of such variation in the valuation of the firm will be relevant with business activities
that has had impacts over reduction in interest rate which have deductibility on valuation. Impact
of such changes are based on making reduction in the free cash flows which were being
calculated and measured as per making taxable payments in long run.
9

Moreover, it has been aimed by the government that reduction in taxable rated will have
positive rise in income that will be supportive as per balancing market value of firm in long run.
It will be attractive to investors as demonstrating profitability of industry in making payments of
dividends. Moreover, government approaches towards increasing the domestic production as well
as balancing trade practices in national boundaries which will be effective and helpful as per
rising economic level. Considering the valuation of firm, the reduction in taxable rates will have
impacts in rising the share prices and capital stability of the business for longer period.
Theme 2: To ascertain impacts of corporate tax rates in operating income of firm
Damodaran, (2015) determined that Operating income of a corporation is generated
through operational practices such as sale of products and services manufactured by them.
Income derived after making payment to all operating expenses such as salaries to employees,
variable and overhead expenses etc. remaining income will be utilised by firm in making
payments to the freeholder, paying off all their debts as well as balancing the operational
activities. However, the payments made by professionals on the operating income generated by
them are usually interest payable over the loan borrowed by them and the taxes. Thus, payments
of all debts of firm in each period will be adequate and helpful as per meeting suitable gains.
Impact of taxation in relation with addressing issues which were being faced by
organisations as per higher rate of tax legislated over income generated by them. Hanninen,
(2018) stated that taxation will be useful to society and government as per collecting the suitable
amount of funds for the further operational practices. There will be increment in infrastructural
facilities as well as per capital income of a location. Thus, the rise in economic condition will be
having appropriate control over operational advantages. Many nations have higher corporate
taxes such as Australia and UK have around 30-35% of taxation levied over income generated by
industries. This has negative impact in reducing income generated by entities.
As per views of Meier and et.al., (2016), there are various costs and expenses needed to
be barred by business professionals for managing operational aspects. Therefore, meeting such
operating requirements is prime task of business. Paying off all the debts such as salaries,
commissions, bonus, incentives, dividends, interest on loans etc. Thus, meeting such debts is
actually of higher costs and expenses.
10

In relation with same accounting professionals and business personnel do not make
payments for taxes. Thus, it has been argued by them paying off taxation will have negative
impact in terms of reducing operating income of firm. Corporate industries do not make
payments of taxes as they postponed it for the next period. Doidge and Dyck, (2015) said that in
accordance with such reasons and arguments they are comparatively right and best at their point
that higher taxable payment will have impacts in reducing reserves and profits generated by them
in due period. US tax system has made various monetary and financial plans which have impact
on economic and financial conditions of nations, along with control over trade practices, taxation
system as well as bound the commercial industries to make payments for taxes on which reducing
rate will be a perfect policy.
According to Van Hasselt and et.al., (2015), US tax system has planned various policies
and regulations which in turn will be effective as per balancing internal income level. Policy is
based on avoiding foreign sources of income for its residents which charges twice taxes which
will be payable to the foreign government. Therefore, it can be said that the higher amount of
money has been payable to foreign government. In relation with this there are the highest
amounts which will be utilised over foreign agencies instead of domestic industries. To reduce
the rates in the domestic level of operational industries which will be beneficial to the residents in
terms of having appropriate economic scale and better competitive trading in market.
Smith, (2016) stated that motive of US government is based on making suitable control
over taxation and monetary system. Considering the two factors which are alternative taxes as
well as balancing the trades in the nation. The number of imports and exports made in each year
will have an impact over the GDP rate of the nation. In these regards, it can be said that there will
be use of appropriate techniques and methods which will be effective in terms of reducing debts
of country. Charging taxes over generated income by the residential and the corporate society will
bring the effective revenue generation for country. In this, federal revenue has the most
favourable sources of gathering appropriate amount of revenue is corporate income taxes (The
Tax Treatment of Foreign Income, 2002). Reduction in the tax rates may affect the funds of
federal revenue but it will be better than all the industries will become able to make the suitable
taxable payments over gains generated by them. Similarly, labour costs incurred in various
operations are needed to be reduces which will be helpful as per rising the profitability as well as
managing the operations. Labours expenses incurred in rising the value of products and services
11

offered by them. Therefore, there will be an adequate amount of funds will be available to entities
in various investing activities. Thus, there will be a satisfactory amount of funds will be available
to entities in terms of making investment in various activities. Thus, it will be a slow process but
due to this there will not be any burden over corporate agencies as well as on the government.
Theme 3: To identify current issues faced by industries in making taxable payments
Popkin and Hawkes, (2016) stated that US tax system is based on various analysis and
several operational captivities with adequate control over monetary system as well as recovering
from impacts of global financial crisis. On a favourable record, it can be said that to have an
adequate taxation planning and satisfactory execution over revenue which is needed for finance
governmental expenses. Tax system of US has mainly focused on improving five sectors such as
Enhancing long- term revenue, reforming corporate tax, improving environment taxes as well as
bringing equability among low and middle-income earners.
To overcome the impact of financial crisis as well as removing its chances of repeating
will be based on making appropriate control over operations. The huge impact of the crisis was
based on Household loans and borrowings. During crisis banks and various financial institution
has offered the loans on lower rates among the society. It is due to meet competition in
environment. Due to such impacts, there has been a rise in monetary transactions in environment
which affects operational transaction such as banks left with no revenue and cash balances. Meier
and et.al., (2016) stated that to have appropriate revenue for long term basis, the current laws has
been projected by the government which are based on the context with rising the economy to
77%. The expectations of government are that they will be rise it till 129% by 2049. Thus, here it
can be said that revenue of nation will rise significantly but expenses or spending will rise even
faster. It is due to increment in the net interest, health programs and social securities. Moreover,
to meet the expected amount of revenue and overcome with the costs and expenses incurred in
the transactions there is needed to have suitable control over policy alternatives.
Doidge and Dyck, (2015) said that main expense of government is based on improving
wealth, health and educational system in country. Thus, due to these regards they approached
towards having the most appropriate amount of revenue which will cover all the expenses and
manages the economic standard of nation. This will be effective as if the government will have
sound currency rate in the international market. The strength of currency rates of a nation will
12

eventually be benefited in improving the monetary system as well as raising the level of
economy. High level of debts will be overcome and considered by government as per managing
economic standards. Van Hasselt and et.al., (2015) demonstrated to reduce the fiscal flexibility
and bring the ability to respond to future recessions the plans and policies will be very effective
as expected by legislative system. Controlling country's debts in respect with improving gross
domestic production there is needed to have risen in the profitability as well as revenue control.
In relation with the construction and manufacturing units where requirement of funds is
on higher extent. Therefore, it will be said that there will be need of appropriate amount of funds
for operations. Making taxable payments over the generated revenue will be a non-profitable act.
Thus, there will be no profit left after making payments to the taxes. Smith, (2016) stated that
changing policies and regulations will affect internal business plan. Moreover, there will be
fruitful consideration of all relevant facts and requirements in operational practices. Project
management will be adequate and helpful as per meeting firms' required operations in the right
time.
According to Jacob and Michaely, (2017), there have been various issues which were
being faced by organisation such as spending time on auditing of accounts as well as analysing
the financial requirements in each projected plans and departmental units of entity.
Demonstration of taxation history in USA it can be said that the governmental plans and policies
were usually based on managing economic condition as well as balancing trade practices in the
nation. It approaches towards raising the level of GDP and creating public safety measurements.
Development of society which includes social security, improving defence, create health and
safety measures as well as promoting educational techniques. Progressive tax system will be
adequate charges made against the level of income generated by an individual or an organisation
(Major tax issues in 2017, 2016). Therefore, the rise in income will eventually create a rise in the
level of taxes payable by them. Macaluso, and et.al., (2018) stated that, in relation with the same
there will be suitable revenue collection for government while the problematic issue arises where
manufacturing and construction business has huge gains which will be utilised in bulk payments
for operations. Thus, as per measuring the taxes in again their generated revenue than they will
going to pay higher taxes and which left no further funds for business activities.
13

Theme 4: To suggest suitable methods in improving tax consideration as well as managing
financial requirements.
Murphy, (2017) ascertains that, managing the operational practices in premises which in
turn will be useful and adequate as per analysing the costs requirements and capital stability in
firm. Tax executive have been enrolled in making suitable taxation planning which will turn with
the motive of making suitable increment economic condition of all sector of organisation.
Company as a small scale, medium or large will have appropriate operational practices.
Therefore, these will be adequately charged against taxes. There is need to have development of
taxable slabs which will be suitable for charging taxes against their generated revenue.
Considering the reduction in taxation rates which have been planned by the US tax system on
which it can be said that it will be a fruitful approach which will be helpful in generating suitable
revenue for better gains. Supporting the ideas of government, it can be said that they have
charged higher taxes to industries which will be used by them in development projects. Thus, if
the amount is not in use that it will be transferred and refund to organisations and individuals.
Karunagaran, Mathew, and Lehner, (2017) stated that, to improve the taxation system in US there
will be requirement of appropriate taxation control and economic stability of firm. Further, in
relation with suggesting the adequate changes in the operational practices there are various
operations which are needed to be considered by the taxation authorities.
According to Sharma, (2017), Increasing the numbers of allowances as well as taxation
exemptions will be very helpful to industries as per generating the adequate amount of revenue
for operational activities. Analysing corporate social reporting of organisation on which they have
disclosed the adequate changes in the operational activities as well as trade practices which in
turn will be very effective and helpful as per analysing the changes made in operations. The
disclosure made by organisation of its financial statement which will be very effective and
assistive as per analysing the financial health and capital stability of the firm. Presentation of data
base consist of various transaction made by firm during the period on which they make various
taxable payments the taxed are deferred tax, income tax or corporate tax. Plan of taxation
authority to reduce the corporate tax which will be the best economical approachable that will be
effective as per measuring the profitability of firm in due period. Damodaran, (2015) analysed
here that, reduction taxes will be helpful to organisation in terms of making better disclosures.
Thus, such disclosures will be suitable as per enhancing capital structure as well as profitability
14

of firm. It comprises with the rise in number of investors associated with entity as they will have
accurate results regarding profits generated by company. It will be attractive to them as they will
analyse level of dividend have been paid by firm in period.
As per the views of Meier and et.al., (2016), Improving the taxation system in country
will be based on making adequate changes in the operational framework of taxation authorities.
Requirements are based in making satisfactory improvements in tax collection process. Thus, it
will be a helpful and assistive techniques which in turn will be useful and appropriate as per
making suitable changes in the operations. It consists with reducing the long-term capital gains of
firm which in turn will be adequate techniques which consists of reducing the securities which
were being listed in long term capital. Thus, it will be helpful to the firm in having satisfactory
exemptions from the listed securities which were mainly invested by investors in capital markets.
It will be suggested to the professionals in entity is that they must make suitable change such as
implicating the use of ultra-high net worth individuals which will be benefited with tax free
capital gains more than its retail investors. Stiglitz and Rosengard, (2015) stated that, it can be
said that the business will have effective control over operational activities such as converting
uncounted income in legal income. It also enables the small businesses to get enrolled with
capital markets.
In accordance with the views of Ahern, Daminelli and Fracassi, (2015), improving tax
collection will be appropriate as per protecting capital gains of investors against the taxable
payments. Similarly, linking the transactions to filed taxes will be helpful to the auditors and
accounting professionals in analysing the income and expenses made by firm in a period.
Moreover, the impacts of adequate panning and operational control over business activities will
be helpful to industry as per managing the efficiencies of firm as well as improving the brand
image in the market. Jacob and Michaely, (2017) said that, organisations are consists of various
risks on which losing the brand image in market will be a main factor which is needed to be
studied and analysed by business professionals. In relation with the operational activities on
which managerial professionals are making appropriate plans and policies that will be effective as
per analysing the financial state of firm. Moreover, to improve the tax collection of country there
is need to have satisfactory increment in policies and decision making. It involved estimating tax
gap which in turn will be funnelling information as per better tax enforcement. To improve
satisfactory tax collection which insists that there is need to have suitable auditing techniques
15

which will be appropriate for charging the taxes over gathered revenue. In relation with this, it
can be said that other than corporate tax and income tax there are several other taxes which are
needed to be reduced by government such as value added tax (VAT), Goods and service tax
(GST) etc. therefore, reduction in such additional tax rates will be very effective and helpful to
the government in terms of collecting the right amount of taxes from industries. A well-managed
taxation system will be very effective to a country in balancing the expenditures as well as
revenue collection.
16

CHAPTER 3: RESEARCH METHODOLOGY
This chapter is consisting of framework of study which will be helpful as per building the
suitable analysis over the study. Therefore, selecting a suitable methodology which bring
appropriate procedure and techniques that will be useful and identified by professionals as per
making proper information. It involves various sections and elements which are needed to be
studies and analysed by the professionals as per demonstrating and measuring the issues.
Selection of appropriate techniques to perform surveys and making reliable analysis over
collected information will be assistive in bringing suitable solution to issues. To perform a
successive research analysis over the issues relevant with US tax system and corporate valuation
which required to have satisfactory study over the facts.
Research approach
Approach of study will be based on collecting quantitative information from the market
which will bring the suitable analysis over the determination of facts. It facilitates the adequate
information and techniques to analyse the individual and group behaviour towards an issue. It
comprises with determining the social and human problems of the society (Rouse, 2018). It
comprises with emerging questions, procedures, data collection and analysis of such gathered
information. Reason behind selecting such information is that it will be helpful and adequate as
per making suitable analysis over research issues.
Comprising a suitable solution from the data derived techniques in resolving them. There
will be development of general theme which consist of all the questions asked to individual or
group and analysis made over reviews collected from such a survey. It will be a helpful tool in
terms of developing the suitable theory for the operational activities. Analysing the facts, it will
be helpful in determining the complexity of a situation which will be importance for individual in
relation with inductive style (Research Approach, 2017). Researchers will have suitable control
over analysis and make favourable determination of appropriate research solutions. It involves
measurement based on statistical and mathematical analysis on the collected data.
Research philosophies
Quantitative approaches of research will be based on making effective analysing over the
collected data. In the present study there will be evisceration of effective information which are
relevant with US tax reforms and its impacts over corporate valuation. In relation with such
17

issues researches is committed to analyse adequate issues which are usually faced by
professionals in operating activities. Positivism philosophy have been selected by the researchers
which is a well-structured research techniques. It brings the ability to analyse the large numbers
of samples (Research Philosophy, 2018). Collected information will be measured and analysed as
per reaching to adequate solutions.
Research will have appropriate collection of data that will be helpful in bringing the
suitable solutions to the issues. Therefore, to analyse issues arises due to governmental plans and
US tax reforms there will be survey over various sectors and departments which in turn will be
adequate and helpful as per meeting the concrete solution (RAJESHBHAI and MAHILA, 2018).
Surveys will be assistive as per analysing the real issues stated in environment which will funnel
the information of researchers as per analysing the appropriate outcomes.
Research design
Gathering information through internal and external sources will be analysed and which is
required to represent a logical meaning. Thus, it can be said that there is needed to have suitable
analysis over the facts and making the most adequate ascertainment of research issues.
Interpretivism design of study has been select by a researcher in relation with making the
appropriate analysis over collected data and representing the suitable justification over outcomes.
It will be based on vagarious steps which are needed to be implicated by the researcher such as
classify the intended results which are needed to be observed (Bagheri and et.al., 2017). Thus,
after this there will be need of developing suitable research questions and answers or outcomes
are needed to be analysed and as per having proper study over the facts.
There is needed to make appropriate demonstration over decisions made by a researcher
which will be beneficial in the future as per having suitable operational practices. On the other
side, the motive behind ascertaining a research design is for developing the satisfactory research
framework and making proper analysis over the outcomes.
Sampling
Sampling plays a main role in making suitable survey over individual or group. Statistical
analysis over the issues and measurements of various analysis will be very adequate in relation
with studying the particular location and areas (Schmera and et.al., 2017). To analyse research
issues which are usually faced by corporate agencies in terms of making taxable payments to the
government which will be effective and have proper determination of the facts.
18

In relation with gathering information through market as per covering the large numbers
of Individual there has been selection of simple random techniques. This is the most suitable
method on which researchers will randomly select group or individual to make proper study and
analysis over their opinion relevant with research issues. They have randomly selected the
various corporate industries which are facing issues with their market value. This study will be
helpful in terms of analysing their actual issues and making the most suitable observation over the
facts.
Data collection
This is the most favourable and adequate techniques which is required to make the
suitable survey in environment. It helps in collecting relevant and adequate data which will be
effective as per meeting the targeted aims in the right time. It includes two techniques such as
primary and secondary techniques (Shaw and et.al., 2017). However, in relation with fetching
appropriate information and generating the good information there will be need of making
suitable analysis in the environment.
Primary data collection techniques are influenced with preparing questionnaires,
interviews as well as observation made over focused group. This method will be adequate in
terms of analysing the individual issues and the opinion relevant with current issues. Similarly, in
relation with the secondary data collection techniques there will be analysis based on analysing
and observing the books, journals, articles, blogs and annual reports of various industries. Thus,
motive of researchers is for analysing all the relevant information adequately as per meeting the
financial goals and making suitable analysis over the outcomes. In relation with such operational
practices there have been selection professionals of various organisations such as KPMG, Duff &
Phelps and Ernst & Young.
Data analysis
Collected information will have reliable analysis and the determination of the facts that it
must be used in making descriptive analysis over the operations. Data analysis comprised with
thematic observations and analysis which will be beneficial as per managing the operations. Here
all the collected information will be analysed as per outcomes given by professionals in context
with questions asked to them as per monitoring various issues and making suitable observation on
facts. Questions asked to 20 professionals of various industries like KPMG, Duff & Phelps and
19

Ernst & Young will be analysed and observed as per having suitable control over business
operations (Pyatak and et.al., 2017). Therefore, it will be supportive analysis as it will bring
information relevant with US Tax reforms and its impacts over valuation of firm.
This technique will be helpful in bringing the satisfactory recommendation to the
professionals of business in terms of monitoring the operations as well as determining the goals
of firm in making operating changes in business. It will improve knowledge of researchers in
terms of analysing impacts of US tax reforms over the corporate valuation as well as changes
incurred in capital market (RAJESHBHAI and MAHILA, 2018). It will also be helpful in context
with ascertaining the needs of firm in making suitable changes in operational practices as well as
demonstrating the business needs.
Ethical consideration
Ascertaining all the ethical norms and considerations which will be fruitful as per
bringing the legal impacts over study. In the present research project there are various surveys
and observations were made over different sources which are required to be referenced properly
(Bagheri and et.al., 2017). Moreover, all the data and information has been collected through
authentic and reliable sources. Thus, such analysis will be helpful in uplifting the operational
activities as well as managing the performance of business.
The differences between right and wrong will be examined as per acknowledging the
suitable analysis over the operational activities as well as making appropriate research analysis
over issues. Thus, it consists of assessing various sources which are considered to be authentic as
per properly referencing them in the last page of report (Ethical Considerations, 2018). Reference
list will be helpful as per making proper analysis and estimation over the market and
governmental policies. The report is consisting of various changes in US tax and the reforms have
impacts in the company valuation on which it can be said that there are various obstacles and
operational activities which are needed to be managed and monitored by the professionals as per
making suitable analysis over the market.
Reliability and validity
Legal and authenticity is quite important in terms of making analysis over reliable
operations of firm. In the present research there has been analysis made over various authentic
sources which will be effective as per making suitable analysis over the market. However, it will
20

be helpful to the firm in terms of making suitable analysis over economic environment as well as
various obstacles faced by organisation in relation with making taxable payments in each period.
Thus, such requirements have affected the company value in the capital market. The study will be
based on analysing the various authentic sources and the researchers have made various efforts in
attaining the fruitful information (Schmera and et.al., 2017). Thus, suggestions will be based on
analysed outcomes which will be satisfactory as per making operating changes business activities.
Research Limitation
In order to analyse various limitations over operations which is required to have
appropriate determination of outcomes. Thus, in such process there was much time needed by
researchers. Here the time allocated and allowed to the researchers is not appropriate as well as
the resources they have observed is also not appropriate in terms of meeting the operational goals
in the right time (Shaw and et.al., 2017). Sample selected by researchers to have appropriate
observations which derived here that the professionals does not present their clear reviews over
the questions which have been asked to them. Similarly, in relation with surveying the
operational efforts made by government in terms of bringing the suitable reforms over the
orations which have impacts over capital stability as well as market values of the firm.
21

CHAPTER 4: DATA COLLECTION AND DATA ANALYSIS
Information gathered through various sources will be analysed as per various operational
activities. However, in relation with making informative observation over the gathered
information with consideration of descriptive analysis as well as implicating various statistical
tools in to practices. Thus, to analyse the impacts of US tax reforms over the corporate valuation
there have been observations made over randomly selected professionals of KPMG, Duff &
Phelps and Ernst & Young. Thus, they have been asked for giving the appropriate opinion in
analysing the facts regarding operational activities (Pyatak and et.al., 2017). Moreover, they have
been asked various open and close ended questions on which they have presented their
appropriate views and ideas which will be helpful to researchers in terms of monitoring the issues
in the business.
DATA ANALYSIS
By considering the observation which have been made on professionals of entities
KPMG, Duff & Phelps and Ernst & Young have represented their ideas as per making suitable
operational analysis. Therefore, to analyse the outcomes which will be helpful to the researchers
in terms of making appropriate recommendation there is need to have proper data analysis.
Collected information are needed to be examined as per implicating various statistical tools to
measure the outcomes (Rouse, 2018). The professionals have been asked to bring their reviews
over the questions which have been asked to them it will be analysed and measured as per having
concrete solution to issues.
Implicating the quantitative measurement which summarizes data set in statistical
outcomes. Therefore, the derived outcomes will be very helpful and appropriate as per meeting
satisfactory outcomes from the analysed data set. It consists of various measurements such as
mean, mode, Median, Kurtosis and Skewness. Therefore, there will be analysis based on
determining standard deviation of firm. Moreover, this test will be adequate and helpful as per
analysing the outcomes and in making concrete judgements to the derived results. It will be
suggestive to the government in terms of making changes in the operational activities as well as
managing the business operations.
22

Effects on Mergers and Acquisition:
Concerning the impacts of various operations such as merger and acquisition of the
entities will be and appropriate concept as per having the appropriate financial strength and
growth in the operational opportunities. There will be rise in the revenue and the operational
gains of the firm which will be helpful as per having the accurate analysis over the market. By
considering the opinions of various individual based on interviews and various research issues,
which have been asked to have determination of current issues have been faced by these
professionals in making qualitative observation over the facts. In relation with ascertaining the
descriptive analysis made over collection of data set which represents the opinion of
professionals. Thus, as per ascertaining the first question asked to the professional’s opinions
regarding US tax reforms on which maximum of reviews have been gathered on option as it will
improve market value of organisation. Thus, in accordance with such observation it can be said
that professionals believe that there will be rise in the market value of their firm as per
government make changes in taxation.
Concerning the rise in merger and acquisition is due to increment in corporate tax rates by
US government. Therefore, to manage the costs and the capital structure of the entity there will
be need of having an appropriate revenue generation by the firm. Moreover, as per observing
operational functioning of various organisation which have recently being merger and operating
the joint venture as per meeting the financial requirements. Similarly, it has been believed by
them that US tax reforms will be helpful to organisations in terms of enhancing their capital
funding. Thus, it will improve their operational funds and similarly rises investors to the firm.
Moreover, such reforms will be helpful to entities in terms of improving funds. Similarly, it can
be said that they will make low payments to the taxes and which reflect a satisfactory amount of
profit have been retained by them in operations. therefore, the reforms have been considered by
various industries in relation with merger and acquisition is that if government make increment in
the taxation rates than there will be need of generating appropriate revenue as well as have the
control over costs which will bring positive changes in the revenue gains of business. To manage
the business operations there will be need of having suitable gains even after making payments to
the corporate taxes. Recently government have made various operational plans which is
proposing the idea of making reduction in the taxation rates. Thus, there will; be reduction in the
23

tax rates of the organisation on which government will have appropriate amount of fund as well
as with the corporations.
It has been analysed and assumed that the firm which are making operational control over
its expenses and operating costs incurred in business activities on which they reduce the salaries
payable to their employees. Thus, due to such impacts there will be reduction in the employment
rate of the country. Considering the impacts of Merger and Acquisition to manage the salaries
payable to employed in the merged organisation ion which businesses have to make payments of
large amount of money. In consideration with the fourth question which have been asked to
professionals that influences incurred in corporate valuations are mainly due to change had in
taxation of business. This observatory analysis will be helpful in building the suitable changes in
the operations and making effective analysis over market. Thus, the fluctuations in corporate tax
will affect corporate valuation in capital market. Concerning the rise in the capital revenue which
will effectively result in improving the market share and value of the organisation.
Effects on the Cash Flow Projection
Considering the taxation reforms and the changes have been face by businesses in relation
with managing the cash flows as well as monitoring the needs of organisation. It helps in
analysing the timing of income and deductions, cost capitalisation as well as determination of the
ability to utilize the changes in making adequate detre4minataion of the operations. There may be
various operations which has have affected the financial balances of the organisation such as it
enforces to capitalized expenditures which may results in favourable repairs and maintenance. On
the other side, there are various options have been measured with nearby Literature. Maximum
professionals have preferred marketing activities which will be considered in terms of making
adequate decision for improving the business activities. Overall, it can be said that reforms made
in taxation will have positive or negative results in corporate finances. As per considering the
current plans and polices of the government in relation with making reduction in the corporate tax
which will be profitable to society. Various small and large-scale enterprises will have sufficient
growth and make their influences in the capital market. There will be rise in the funding and
operational gains of organisations.
Moreover, there are various taxation plans which have been made by government as per
improving the economic stability in nations. Managing the balance of payments, trades etc. will
24

have effective operational control and management. It helps in increasing the value of current tax
depreciation associates with currently obtained constructed fixed assets. However, there have
been appropriate improvements in the class and segregation of operations which are needed to
have balances cash flows. It enables the business in having appropriate short-term solvency in
meeting the debts on the right time. Thus, the taxable reforms is that government is planning to
reduce rates on which there will be less charges which will have been payable by the
professionals as per meeting the gains and management of operations. On the other side, in
accordance with literature and observatory analysis over US tax reforms on which it has been
derived that there are various operations which will be helpful and adequate as per ascertaining
the impacts of US tax reforms in industrial valuation, operations as well as profitability.
Therefore, which represents here that there has been changes and influences incurred due
variation in the taxation rates as well as planning of government in terms of improving economic
conditions. Thus, the higher charges will affect the firm in retaining revenue as well as lower
charges affects in rising their revenue. Simultaneously, there has been various operational
changes and impacts in the activities which in turn will have negative and positive impacts. This
variation will also affect the market share value in due period. Less profitability will affect
reducing trust of investors in organisation as they feel unsecured in making investments.
Enabling the businesses in relation with making the effective forecasts as well as
management of operations which will be quite effective for better financial administration. It has
been determined here that it creates obstacles in MTR and ETR forecasts which in turn affects in
new federal tax rates as 21%. However, the previous tax rates were 35% which have been
expected to be reduce to 21%. Due this impact there will be suitable taxable control over
operations which are needed to have balanced operational practices and the management of
activities. Reduction in taxation will be helpful to entity as they will have appropriate amount of
operating income that will be useful in the operational practices and business management.
Similarly, the new methods have been invented by the government such as One-off tax charge on
foreign cash. Thus, it will be assistive in accumulating the foreign earnings by all US corporate
industries. In relation with this there are the income which have been generated by the business
professionals in context with making effective tax reforms. Additionally, there are various
reforms in the tax rates implicated over cash flows of the businesses on which 15.5% will be
levied for the foreign earnings held in cash and cash equivalents, 8% for gains through other
25

assets. Therefore, such reforms will have positive and negative impacts in the rise of operational
gains for the business. The one-off tax will be payable for the period of eight years which in turn
have the positive and negative impacts as managing the cash flows as well as determination of the
ability of industry in meeting the required level of operational efforts.
Effects on the Pass-Through Entities
Considering the literature review there have been various closed-held entities which were
demonstrated to be pass-through entities either as corporation distributed cash dividend to the
investors. Therefore, it will be determined and differentiated as S corporation, limited liability
corporation or and Partnership firm. Therefore, such identification of the variations is necessary
because the C corporation have their earning taxed on the corporate level and it is again taxed by
the shareholders on the dividend level. Thus, the dual taxation affects level of earnings made by
an organisation in the operational practices. Relating the operations of industry there have been
various expenses that will required suitable amount of funds to be utilised in each activities and
operations of the firm. Thus, the management of each operations will be necessary by the
accounting professionals and they are also responsible for making appropriate changes activities
like suggesting alternative. The impact of US tax reforms business activities is that there will be
appropriate operational changes and variation which will have appropriate gains to the business.
Considering the reform which affects the long-term operations of businesses as whole
planning and policies of organisation will be based on making fruitful decision as well as
analysing its impacts. Additionally, as per considering the tax reforms will be helpful in
improving welfare services in society. Thus, it will be suitable approach of government in making
appropriate welfare activities in the business which will be effective as per rising the profits of
industries. Reduction in taxable rates will be very helpful as per making appropriate changes in
operational activities. Considering the impacts of US tax reforms in building a satisfactory in
economic scale on which it can be said there are various other taxes which are also reformed and
redeveloped by the government such as VAT, Sales tax and labour tax. Thus, impacts of such
taxation is that it reduces the profits of funds. However, on which value added taxes has to be
considered by the government as well as reformed by them. It will be influential and helpful in
developing the adequate operations. There will be a satisfactory rise in market value as well as
firms will have appropriate number of investors as per the effective financial disclosure will be
presented by the businesses.
26

Contrasting on changes after US tax reforms took place in the operational activities. On
which it has been belies that it will improve salaries and wages payable to employees. In
accordance with such outcomes it can be said that there will be increment in the funding
operations of business. Determining the adequate outcomes and the studies there has been
reduction in the corporate tax rates which in turn will affect in rising the revenue gains of firm.
Moreover, here, it can be said that there will be rise in the operating gains. Thus, the reduction
will be fruitful to the business entities in terms of having the optimum outcomes which in turn
will be useful and adequate.
Valuation of a firm depending upon the changes and variations incurred in taxation. Thus,
corporate taxation has been charged against the income generated by firm. Outcomes and the
preferences of the options from individual determined here that there have been changes incurred
in the operating activities as well as valuation of firm. However, it can be said that there will be
changes in the valuation of the firm as per variation made by government in tax rates. Apart from
corporate taxes or taxable adjustments considers by the professionals there have been various
transactional activities incurred in business Thus, it has been believed that the better market will
be effective in terms of creating identity in market as well be having better sales. It will also
improve growth and profitability of firm and that will reflect in better market value of firm.
Considering the above studies, literature and various articles by the US Government on
which it can be said that the reforms will enable the C corporation in making taxable payments on
the rate of 21% which was previously 35%. Thus, such improvements will bring the suitable
gains to the industries and simultaneously helps the government in collecting the adequate
reserves for the future operations. Similarly, for S corporations which are continued to be
effectively taxed at individual rates till 2025. Thus, this approaches towards putting both the
categories of industries on the same or equivalent level for putting fiscal prior to 1st January 2026.
Further, the act enables the shareholder or individual in relation with deducting the 20% of
qualified business income (QBI) in reaching through their taxable income. On the other said, it
can be said that the income which have been generated through services-based industries on
segmentation of law, health and accounting where individual or business personnel were not
being eligible for these kinds of deduction. Considering the operations on which it can be said
27

that there has been deduction in the income tax rates which will be helpful to pass through entities
as per making suitable operational changes and operations.
Ascertaining the identification of the appropriate discounting cash flow valuation method
which is function of expected future net cash flows and PV factors. Therefore, somehow it will
also have the relevance with identifying the adequate costs of capital on discounted rate.
Therefore, impacts of the tax cuts and jobs acts which will be assistive in terms of increasing the
net cash flow for business. It will also impact in rising the numerator in DCF model which leads
to higher value. Similarly, it has been addressed here that the run-up in inventory value is
determined by the expectations that the net cash flow with have rise which in turn allows higher
return over profits given to shareholders.
Effects on the Cost of Capital
Considering the literature on which it has been analysed that the merger and acquisition
will be profitable in bringing appropriate costs of capital and well-structured capital in business.
Ascertaining the Duff and Phelps costs of capital navigator which is interactive and web-based
tool that can assist an organisation a better cost of capital (Ke). The tax Cuts and Jobs Act, have
currently being enforces and effective form 22nd December 2017 on which implication of various
business and assets valuations to a new cost of capital as well as key components for valuation
analysis. Act’s impacts on value is really a cause of two powerful competing forces such as rise
in the value by expected rise in net cash flows as well as reduction in value as per higher potential
cost of capital. On the other side, there are various factors which will be effective to the
professionals of various industries to analyse made manage their capital structure according to
changes in the taxation, law and administration.
Demonstrating the various factors which will have impacts due to taxation reforms in the
environment such as risk-free rate, market risk factors and beta value. Similarly, considering the
equity risk premium which is an expressed demand from the investors to compensate their
investigation relevant with the diversification of portfolio. The portfolio of large common stock
rather than investing in risk free securities has been acknowledged and administered by the
business professionals and investors. In relation with making estimation and analysis over tax
reforms affects the equity collection of firm on which people believe that it will be rise. Thus, it
can be said that there will be rise in the number of investors which will have impacts in rising the
equity collection of firm. On the other side, it insists that there will not be any increment in the
28

equity collection of firms. it has been analysed on the basis of reviews from professionals that
will the tax reform helps in improving the long-term operations of entity. Thus, in relation with
such operations it can be said that there have been rise in the long-term operations. Similarly,
there has been rise in the long-term efficiency of firm which in turn will be useful and adequate
as per meeting the operations.
By contrasting on the various operations which were being implicated by the Federal
Reserves it can be said that the implementation financial press will have a reducing in the motive
of massive holdings on mortgage backed securities and US treasury debts. Thus, the reforms will
have impacts on various factors which helps in bringing the effective cost of capital over the
projected plan of the industries. However, these are the holdings which being designed by the
financial professionals as per having the lower interest reason the long period as well as reducing
the cost of equity. Thus, on the current aspects it can be said that Federal society has analysed
that economy has the strength for controlling the interest rates to returns on normal levels which
will have impacts on progressively rise of an increase in the cost of equity. Determining the facts
that there will be appropriate control over the interest rates which will positively results in the
effective costs of equity of the business.
Administrating the beta risks which consists of both the risks such as business and
financing risks. The business capital has been financed by the debt capital which approaches
towards rise in the beat risks. Thus, here the risks are partially mitigated by taxable reduction in
interest expenses as well as reduction in true cost of interest expenses. There have been
implication of various techniques and activities which in turn will be useful for making effective
weighted average costs of capital to the business in a function for costs of both equity and debt.
Therefore, preventing the financial operations and activities of the business with considering
appropriate consideration and management of operations.
Effects on Multinational Corporations
Addressing the impacts of US tax reforms on the business operating on the international
level which identifies that there will be changes in the operations as well as determination of
various facts. However, there have been various benefits to the multinational corporations in the
world such as balanced intangible property like goodwill, patents, copyrights etc. thus, these are
the properties which are exempted in the taxation and they will not have to make any payments to
taxes. Benefits to the business professionals in the entity in relation with managing and
29

monitoring the operations of entity as well as determination of various facts and figures that will
be assistive and adequate as over meeting the required level of operations. On the other side, the
international of foreign organisation have to make payments of taxes levied on their intellectual
property (Valuation Insights, 2018). Thus, there will be various serious issues and obstacles
which in turn will have impacts on the operational practices as well as management of various
issues. Therefore, it will be denoted as the taxable benefits to the organisation as per making
appropriate changes and operational control over gains and losses. Reduction in corporate taxes
will be encouraging the business professionals as per making effective operational activities and
control over each operation.
Small scale enterprises will have suitable gains and operating activities as per making
improvements in the operations. Overall, it can be said that such transactional activities will be
depended over variation in the taxation such as rise and fall in the tax rates will have impacts in
rising the revenue as well as economic standard. In accordance with the various other taxes which
have been imposed by government over organisations on which it can be said that there has been
consideration made over various other taxes too such as Sales tax, value added tax and Labour
tax. Thus, it has been believed that value added tax are to be considered by government which are
needed to be reforms. Similarly, labour costs incurred in various operations are needed to be
reduces which will be helpful as per rising the profitability as well as managing the operations.
Labours expenses incurred in rising the value of products and services offered by them. Increase
in the capital gains will simultaneously have impacts in improving budgeting and operating
funding of business. Therefore, there will be an adequate amount of funds will be available to
entities in various investing activities. Thus, there will be a satisfactory amount of funds will be
available to entities in terms of making investment in various activities. Moreover, there will be
suitable and satisfactory fund will be available for the operating activities in the business as per
appropriate collection on equity.
Moreover, as per ascertaining the requirements and internal operations held in the US
economy where the government has planned to reduce the corporate taxes which will be helpful
in encouraging the trade practices as well as management of various operations. Previously the
top corporate federal income tax rates were 35% which on an average tends to have reduction as
18.6%. It have the reciprocate influences to the multinational corporation that they are seeking for
the location in the nations as per having effective operating control and managements of various
30

operations. it has been assumed here that the government is making reduction of the corporate tax
at 21% here the reviews has been analysed through various articles and studies which brings the
acknowledgement that the investors are waiting for the effective reviews and outcomes through
such operations. they believe that they will wait for the activities held in industries as well as
revenue generated by the organisation which will be helpful to them in terms of having effective
revenue generation and payments of dividends.
31

CHAPTER 5: RECOMMENDATION AND CONCLUSION
RECOMMENDATION
It has been analysed through above listed survey is that professionals are needed to use
alternatives in terms of reducing the costs incurred in operating the business activities.
Government of various nations make plans and operational activities. US Government has made
various plans and operational activities which will have positive impacts in rising the reserves
and economic structure of the organisations. There are various other taxes which have been levied
by government which are needed to be controlled and reformed by government. It includes VAT,
Sales tax and labour taxes. Therefore, improving such taxation will bring positive outcomes
which in will be useful and appropriate as per making suitable changes in taxation activities.
Reducing the taxable charges will be effective in terms of improving annual disclosure of
industries. They will become able to communicate effective financial disclosures as per business
health and the outcomes derived in the operational activities. Considering the social and
economic factors on which it can be said that there will be improvements in the economical
consideration of country. People and industries will have effective sources of funds that will be
useful and helpful as per meeting the operational goals in the right time.
Disclosure of financial data set become adequate as per the lower taxes will reflect higher
probability in accounts. Thus, investors will show their interest in making investments in the
companies as per having appropriate outcomes. Thus, as per such outcomes it can be said that
there will be a satisfactory rise in market value as well as firms will have appropriate number of
investors as well as there will be changes in the valuation of the firm as per variation made by
government in tax rates. Thus, in relation with various outcomes derived from above observation
on which it can be said that there have been rise in the revenue and the operational activities of
the firm which will be useful as per making changes in operational activities of firm. Moreover, it
will be recommended to the professionals and government that they must make changes in
corporate taxation as well as they must consider the changes to be made in various other taxes.
Improving efficiencies of small scale firms will result in better market control and economic
growth. Similarly, rise in profitability will directly impacts over improving the capital value.
32

CONCLUSION
On the basis of above report it has been analysed here that US tax reforms will affect the
corporate value. Government have estimated and planned to reduce the tax rates which will be
effective as per meeting the financial goals in the right time. Thus, the succession of this plan will
be depending over yearly performance made by entity in relation with improving the business
operations. This research project consists of various operations and surveys which were made
over organisation and the professionals working in it. Thus, there determination of adequate
information will be helpful in rising the capital gains of firm. Moreover, it will be influence and
helpful as per highlighting the operational needs of such a firm and government in due course.
Small scale enterprises will have suitable gains and operating activities as per making
improvements in the operations. Similarly, labour costs incurred in various operations are needed
to be reduces which will be helpful as per rising the profitability as well as managing the
operations. Labours expenses incurred in rising the value of products and services offered by
them. Therefore, there will be an adequate amount of funds will be available to entities in various
investing activities. Thus, there will be a satisfactory amount of funds will be available to entities
in terms of making investment in various activities. Thus, the reduction will be fruitful to the
business entities in terms of having the optimum outcomes which in turn will be useful and
adequate.
33

REFERENCES
Books and Journals
Ahern, K. R., Daminelli, D. and Fracassi, C., 2015. Lost in translation? The effect of cultural
values on mergers around the world. Journal of Financial Economics. 117(1). pp.165-189.
Bagheri, A. R. and et.al., 2017. Comparative study on ultrasonic assisted adsorption of dyes from
single system onto Fe3O4 magnetite nanoparticles loaded on activated carbon:
Experimental design methodology. Ultrasonics sonochemistry. 34. pp.294-304.
Damodaran, A., 2015. Actionable Innovative Financial and Economic Instruments for
Biodiversity Conservation in India. Biodiversity Conservation-Challenges for the Future,
p.157.
Doidge, C. and Dyck, A., 2015. Taxes and corporate policies: Evidence from a quasi natural
experiment. The Journal of Finance. 70(1). pp.45-89.
Gupta, C. P., Akhter, J. and Chaklader, B., 2017. The Impact of IFRS Adoption on Key Financial
Ratios-An Analysis of Wipro. Imperial Journal of Interdisciplinary Research. 3(4).
Hanlon, M., Lester, R. and Verdi, R., 2015. The effect of repatriation tax costs on US
multinational investment. Journal of Financial Economics. 116(1). pp.179-196.
Hanninen, A., 2018. Transfer pricing of business restructurings from the perspective of Russian,
Finnish and US tax law.
Jacob, M. and Michaely, R., 2017. Taxation and dividend policy: The muting effect of agency
issues and shareholder conflicts. The Review of Financial Studies. 30(9). pp.3176-3222.
Karunagaran, S., Mathew, S. K. and Lehner, F., 2017. Differential cloud adoption: A
comparative case study of large enterprises and SMEs in Germany. Information Systems
Frontiers, pp.1-15.
Macaluso, N. and et.al., 2018. The impact of carbon taxation and revenue recycling on US
industries. Climate Change Economics. 9(01). p.1840005.
Meier, P. S. and et.al., 2016. Estimated effects of different alcohol taxation and price policies on
health inequalities: a mathematical modelling study. PLoS medicine. 13(2). p.e1001963.
34

Murphy, F., 2017. How Does the US Taxation of Foreign Earnings Affect Internal Capital
Markets: Evidence from TIPRA 2005.
Popkin, B. M. and Hawkes, C., 2016. Sweetening of the global diet, particularly beverages:
patterns, trends, and policy responses. The Lancet Diabetes & Endocrinology. 4(2).
pp.174-186.
Pyatak, E. A. and et.al., 2017. Resilient, Empowered, Active Living with Diabetes (REAL
Diabetes) study: Methodology and baseline characteristics of a randomized controlled
trial evaluating an occupation-based diabetes management intervention for young adults.
Contemporary clinical trials. 54. pp.8-17.
RAJESHBHAI, M. P. and MAHILA, S. V. S., 2018. Corporate Social Responsibility Reporting
Practices in India: A Study of Selected IT Companies. Dr Sunidhi Miglani, p.19.
Rouse, W. B., 2018. EMERGENCE IN COMPLEX ENTERPRISES. Emergent Behavior in
Complex Systems Engineering: A Modeling and Simulation Approach, pp.99-127.
Schmera, D. and et.al., 2017. Functional diversity: a review of methodology and current
knowledge in freshwater macroinvertebrate research. Hydrobiologia. 787(1). pp.27-44.
Sharma, A., 2017. New Zealand-India relations: A step forward. New Zealand International
Review. 42(1). p.10.
Shaw, B. E. and et.al., 2017. National Institutes of Health hematopoietic cell transplantation late
effects initiative: the research methodology and study design working group report.
Biology of Blood and Marrow Transplantation. 23(1). pp.10-23.
Singh, B., 2017. Whether NSE Pharma Index Companies Hold High Liquidity?. International
Journal. 5(6).
Smith, J. D., 2016. US political corruption and firm financial policies. Journal of Financial
Economics. 121(2). pp.350-367.
Stiglitz, J. E. and Rosengard, J. K., 2015. Economics of the Public Sector: Fourth International
Student Edition. WW Norton & Company.
Tsoutsoura, M., 2015. The effect of succession taxes on family firm investment: Evidence from a
natural experiment. The Journal of Finance. 70(2). pp.649-688.
35

Van Hasselt, M. and et.al., 2015. The relation between tobacco taxes and youth and young adult
smoking: What happened following the 2009 US federal tax increase on cigarettes?.
Addictive behaviors. 45. pp.104-109.
Online
Ethical Considerations. 2018. [Online]. Available through
:<https://cirt.gcu.edu/research/developmentresources/tutorials/ethics>.
Major tax issues in 2017. 2016. [Online]. Available
through :<https://www.brookings.edu/research/major-tax-issues-in-2016-2/>.
Research Approach. 2017. [Online]. Available through
:<https://us.sagepub.com/sites/default/files/upm-binaries/55588_Chapter_1_Sample_Cres
well_Research_Design_4e.pdf>.
Research Philosophy. 2018. [Online]. Available through
:<https://research-methodology.net/research-philosophy/>.
Special Report: Corporate Tax Reform. 2017. [Online]. Available through
:<https://info.taxnotes.com/corporate-tax-reform_the-issues-and-the-choices?
utm_campaign=tax%20reform&utm_source=ppc&gclid=EAIaIQobChMIkP-
K9ofu2wIVU42PCh2W_wjxEAAYASAAEgJzi_D_BwE>.
The Impact of US Tax Reform on Corporate Strategy. 2018. [Online]. Available
through :<https://www.bcg.com/en-in/publications/2018/impact-us-tax-reform-corporate-
strategy-m-and-a.aspx>.
The Tax Treatment of Foreign Income. 2002. [Online]. Available through
:<https://www.brookings.edu/wp-content/uploads/2016/06/20020509-1.pdf>.
Valuation Insights. 2018. [Online]. Available through :<
https://www.duffandphelps.com/insights/publications/valuation-insights/valuation-insights-
first-quarter-2018>.
36