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on Law and Economics |
| By: | Dertwinkel-Kalt, Markus; Wey, Christian |
| JEL: | L12 L41 D42 K21 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc21:242338&r= |
| By: | Klein, Daniel; Ludwig, Christopher; Nicolay, Katharina |
| JEL: | O33 L25 H25 H26 K34 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc21:242365&r= |
| By: | Chanont Banternghansa; Athiphat Muthitacharoen; Archawa Paweenawat; Krislert Samphantharak |
| Abstract: | This paper studies the effects of SME tax incentives on firm behaviors. We use firm-level panel data of all registered firms in Thailand to analyze the effects of a large reduction in corporate income tax rates for SMEs in 2011. First, we find that firms responded strongly to the SME tax incentive as indicated by a sharp bunching of firms just below the threshold after the incentive was introduced. The responses were concentrated among firms with positive EBIT, implying a financial motive for firms to remain small. Second, the bunching was prominent for stand-alone firms, where we observe slower revenue growth for those below the threshold. Third, we do not observe bunching for corporate-group firms, but we find evidence of tax-motivated profit shifting among them instead, especially among firms in small groups with weak corporate governance. Our analysis suggests that transfer pricing was likely a primary channel. Finally, despite the unintended consequences, we find that the incentive significantly raised the probability of firm's survival and encouraged new firm registration, as the policy intended. |
| Keywords: | Bunching; Tax Incentives; Business Group; Corporate Tax; Size-dependent Policy; Tax Evasion |
| JEL: | F23 H25 H26 K34 M42 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:148&r= |
| By: | Thammarak Moenjak; Veerathai Santiprabhob |
| Abstract: | In the digital era, new forms of non-bank entities have emerged and gained increasingly prominent roles in providing financial services. These non-bank entities, particularly those associated with non-financial conglomerates and large technology companies (BigTech) pose new challenges for financial regulators whether in terms of financial stability, level-playing field competition, or customer protection. This article discusses emerging trends in the rise of non-bank entities in the digital era, the challenges they pose, and what financial regulatory approaches can help to address those challenges. This article proposes that a holding company structure could be applied to regulate non-financial conglomerates or BigTech firms providing financial services through subsidiaries. This proposal is expected to help address regulatory concerns where existing regulatory approaches cannot adequately cope with. |
| Keywords: | Regulation; Global Economy; Industrial Organization |
| JEL: | G23 K21 K23 O16 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:154&r= |
| By: | Exler, Florian; Hansak, Alexander |
| JEL: | E21 E43 G18 G41 G51 K12 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc21:242359&r= |