|Dischinger, Matthias (August 2008): Profit Shifting by Multinationals and the Ownership Share: Evidence from European Micro Data. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2008-17|
Dies ist die neueste Version des Dokumentes.
We provide indirect empirical evidence of profit shifting behavior by multinational enterprises (MNEs) employing a panel study for the years 1995 to 2005, while controlling for unobservable fixed firm effects. We use a large micro database of European MNEs which includes detailed accounting and ownership information. Our results show a strongly negative relationship between an affiliated company's statutory corporate tax rate difference to its foreign parent firm and the affiliate's gross profits. Quantitatively, a 10 percentage points decrease in the tax rate of the affiliate (relative to the parent) increases its pre-tax profitability by 7%, other things being equal. Various robustness checks support this profit shifting inference. Furthermore, we provide evidence that a higher parent's ownership share of its subsidiary leads to intensified shifting activities between these two affiliates.
|Dokumententyp:||Paper (Discussion Paper)|
|Keywords:||corporate taxation, multinational enterprise, profit shifting, share ownership ratio, micro level data|
Volkswirtschaft > Munich Discussion Papers in Economics
Volkswirtschaft > Munich Discussion Papers in Economics > Finanzwissenschaft
Volkswirtschaft > Lehrstühle > Seminar für Wirtschaftspolitik
|Themengebiete:||300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie
300 Sozialwissenschaften > 330 Wirtschaft
|JEL Classification:||H25, H26, F23, C33|
|Veröffentlicht am:||13. Aug. 2008 09:44|
|Letzte Änderungen:||01. Mai 2016 23:23|
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Alle Versionen dieses Dokumentes
Profit Shifting by Multinationals: Indirect Evidence from European Micro Data. (deposited 17. Sep. 2007)
- Profit Shifting by Multinationals and the Ownership Share: Evidence from European Micro Data. (deposited 13. Aug. 2008 09:44) [momentan angezeigt]