Tax Competition Is it a Source of the Corporate Savings Glut?
This paper examines the determinants of corporate savings in a cross-country panel setting. Specifically, it employs firm-level data covering more than 540,000 firm-year observations for 12 advanced and emerging market economies. Panel regression results suggest that reductions in statutory corporat...
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| Format: | eBook |
| Language: | English |
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Washington, D.C
The World Bank
2020
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| Series: | World Bank E-Library Archive
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| Collection: | World Bank E-Library Archive - Collection details see MPG.ReNa |
| Summary: | This paper examines the determinants of corporate savings in a cross-country panel setting. Specifically, it employs firm-level data covering more than 540,000 firm-year observations for 12 advanced and emerging market economies. Panel regression results suggest that reductions in statutory corporate income tax rates can explain one-third of the rise in corporate savings (defined as net financial assets) in 2003-17. This finding is supported by a propensity scores matching analysis of the effects of changes in corporate income tax rates |
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| Physical Description: | 31 pages |