But you don't increase profits, what you do is spend that money recklessly on R&D that has a lower ROI than if that money was spent outside the company. However, once taxes are factored in the ROI is better than paying taxes due to an increase in the share price.
So what you incentivize is the misallocation of funds from their most beneficial use outside the organization to something in the organization.
So what you incentivize is the misallocation of funds from their most beneficial use outside the organization to something in the organization.