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on Accounting and Auditing |
| By: | Manthos D. Delis (Audencia Business School); Emilios C. Galariotis (School of Production Engineering and Management); Maria Iosifidi (Montpellier Business School); Steven Ongena (University of Zurich - Department Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR)) |
| Abstract: | Corporate taxation can have redistributive effects on income and wealth. We hypothesize and empirically establish such an effect working via bank credit. We use a unique sample of small majority- owned firms that apply for credit, where only some firms (treated) experience a corporate tax cut. We show that after the decrease in corporate tax rates, the treated poorer business owners get easier access to credit. However, this policy also considerably increases loan amounts and decreases loan spreads for the treated richer. Ultimately, reducing the corporate tax rate predominantly increases the future income and wealth of richer business owners. |
| Keywords: | Corporate taxes, Economic inequality, Bank credit, Credit score |
| JEL: | G20 G21 H25 D63 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2481 |
| By: | Kangasharju, Aki |
| Abstract: | Abstract The way economistis usually calculate the effects of corporation tax on the economy is flawed. The reduction in corporation tax is likely to pay itself back to the public sector, when the full effects of the change are taken into account. However, the effect is not immediate. |
| Keywords: | Corporate tax, Dynamic effects |
| JEL: | H2 H3 H6 E2 E6 |
| Date: | 2024–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:rif:briefs:151 |
| By: | Bruehne, Alissa; Jacob, Martin; Schütt, Harm (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:748e1c3d-7b53-447d-9637-56ce5b3e5f03 |
| By: | Hayato Kato (Osaka University); Andreas Haufler (LMU Munich) |
| Abstract: | The Global Minimum Tax (GMT) is applied only to firms above a certain size threshold, permitting countries to set differential tax rates for small and large firms. We analyze tax competition among multiple tax havens and a non-haven country for heterogeneous multinationals to evaluate the effects of this partial coverage of GMT. Upon the introduction of a moderately low GMT rate, the havens commit to the single uniform GMT rate for all multinationals. However, gradual increases in the GMT rate induce the havens, and subsequently the non-haven, to adopt discriminatory, lower tax rates for small multinationals. Our calibration exercise shows that the implementation of a 15% GMT rate results in a regime where only the havens adopt split tax rates. Upon GMT introduction, welfare and tax revenues fall in the tax havens but rise in the non-haven, yielding a positive net gain worldwide. |
| Keywords: | global minimum tax; profit shifting; multinational firms; |
| JEL: | F23 H25 H87 |
| Date: | 2024–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:rco:dpaper:516 |
| By: | Ana Maria Santacreu; Ashley Stewart |
| Abstract: | An analysis examines how U.S. multinationals’ tax and profit-shifting strategies might affect yields on direct investment in tax havens versus G7 economies. |
| Keywords: | multinational corporations; taxes; profits; tax havens; investment |
| Date: | 2024–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00001:99189 |
| By: | Poloni, Paolo |
| Abstract: | Supervisory data are typically not conceived for statistical purposes or considered “official statistics”, but they are disclosed to the public, either directly by the supervised institutions or indirectly by the competent authorities. This disclosure is required under Pillar 3 of the Basel framework on banking supervision. The aim of the framework is to promote market discipline, whereby market participants monitor the risks and financial positions of banks and take action to guide, limit and price their risk-taking to safeguard financial stability. The disclosure of supervisory data is therefore a public good. In addition, supervisory data can be a reliable source for official statistics such as financial accounts. On the other hand, the nature of supervisory data differs from that of standard official statistics and its quality is subject to a robust assessment framework, with distinct particularities. The aim of this paper is to analyse the EU supervisory reporting framework from an institutional and policy perspective, in view of its potential and desirable evolution over time, including its possible integration with the statistical framework. The paper is split into three main parts. First, it describes the historical and current EU institutional settings, including the role of the European Banking Authority (EBA) reporting framework and the role of the Single Supervisory Mechanism (SSM), focusing on the data quality assessment framework and the publication of supervisory statistics. […] JEL Classification: C81, G21, G28, G38 |
| Keywords: | data integration, data quality, Pillar 3, reporting policy, supervisory reporting |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2024363 |
| By: | Koutchade, Obafémi Philippe; Carpentier, Alain; Féménia, Fabienne |
| Abstract: | In this paper, we propose an approach to allocate input uses among crops produced by farmers, based on panel data that includes input use aggregated at the farm-level. Our proposed approach simultaneously allows for (i) controlling for observed and unobserved farm heterogeneity, (ii) accounting for the potential dependence of input uses on acreage decisions, and (iii) ensuring consistent values of input use estimates. These are significant issues commonly faced in the estimation of input allocation equations. The approach is based on a model of input allocation derived from accounting identities, where unobserved input uses per crop are treated as time-varying random parameters. We estimate our model on a sample of French farms’ accounting data, by relying on an extension of the Stochastic Approximation of Expectation Maximization algorithm. Our results show good performance of our approach in accurately allocating input uses among crops, for the crops the most frequently produced in our data sample in particular. |
| Keywords: | Crop Production/Industries, Production Economics, Research Methods/ Statistical Methods |
| Date: | 2024–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:ags:inrasl:348476 |