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dc.contributor.authorFossen, Franken_US
dc.contributor.authorSimmler, Martinen_US
dc.date.accessioned2012-03-19en_US
dc.date.accessioned2012-03-26T15:31:32Z-
dc.date.available2012-03-26T15:31:32Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/56056-
dc.description.abstractTax competition for the mobile factor capital has led to a trend in many countries to levy lower taxes on interest income, often introducing differential taxation between interest and business income. In this study, we analyze the effect of such differential taxation on the debt ratio of firms. We exploit a 2009 tax reform in Germany as a quasi-experiment, which introduced a flat final withholding tax and opened a gap of 18 percentage points between the tax rate on income from unincorporated businesses and the new lower tax rate on interest income. We apply a regression adjusted semi-parametric difference-in-difference matching strategy based on firm level panel data. In addition, we implement a more structural approach with a tax rate differential, taking into account its endogeneity by using instrumental variables. The results indicate that firms increase their leverage when the tax rate on interest income decreases, albeit to a small degree.en_US
dc.language.isoengen_US
dc.publisherFreie Univ., Fachbereich Wirtschaftswiss. Berlinen_US
dc.relation.ispartofseriesSchool of Business & Economics Discussion Paper: Economics 2012/4en_US
dc.subject.jelH25en_US
dc.subject.jelH24en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordincome taxationen_US
dc.subject.keywordcapital taxationen_US
dc.subject.keywordfinancial structureen_US
dc.subject.keywordleverageen_US
dc.subject.keywordmatchingen_US
dc.subject.stwKapitalertragsteueren_US
dc.subject.stwFlat Taxen_US
dc.subject.stwUnternehmensbesteuerungen_US
dc.subject.stwEinkommensteueren_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwKapitalstrukturen_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleDifferential taxation and firms' financial leverage: Evidence from the introduction of a flat tax on interest incomeen_US
dc.typeWorking Paperen_US
dc.identifier.ppn688816010en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:fubsbe:20124-
Appears in Collections:Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin
Publikationen von Forscherinnen und Forschern des DIW

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