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 r...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/970321593089112651/Tax-Competition-Is-It-a-Source-of-the-Corporate-Savings-Glut http://hdl.handle.net/10986/34017 |
| 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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