Tax holiday research by faculty member cited

Dr. Xin (Jessica) Zhao (top) and Dr. Qi (Flora) Dong (bottom)

Dr. Xin (Jessica) Zhao (top) and Dr. Qi (Flora) Dong (bottom).

Credit: Penn State Behrend

Dr. Qi (Flora) Dong, assistant professor of accounting, and Dr. Xin (Jessica) Zhao, professor of finance, recently had their research referenced in a Bloomberg Law story.

Their study examined company expenditures in the four years prior to and following enactment of the 2004 American Jobs Creation Act.

In a study of 395 corporations, Dong and Zhao found that legislation resulted in an average annual increase in research and development of $47 million per repatriating company. For comparison, the average increase in research and development expenditures for nonrepatriating firms was $5 million during the same period.

“We are excited about the recognition Dr. Dong and Dr. Zhao’s work brings to Penn State Behrend,” said Dr. Greg Filbeck, director of the Black School of Business. “Our faculty members, true to their learning-by-doing and theory-to-practice approach, produce scholarly research that benefits the industries they represent.”