The coming long-run slowdown in corporate profit growth and stock returns

Michael Smolyansky
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Michael Smolyansky: https://www.federalreserve.gov/econres/michael-smolyansky.htm

No 2022-09-06, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Over the past two decades, the corporate profits of stock market listed firms have been substantially boosted by declining interest rate expenses and lower corporate tax rates. This note's key finding is that the reduction in interest and tax expenses is responsible for a full one-third of all profit growth for S&P 500 nonfinancial firms over the prior two-decade period.

Date: 2022-09-06
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2022-09-06

DOI: 10.17016/2380-7172.3167

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