Publication: Tax Competition: Is It a Source of the Corporate Savings Glut?
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2020-06
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2020-07-02
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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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“Kawamoto, Atsushi; Muraki, Kei. 2020. Tax Competition: Is It a Source of the Corporate Savings Glut?. Policy Research Working Paper;No. 9302. © World Bank. http://hdl.handle.net/10986/34017 License: CC BY 3.0 IGO.”
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