Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88595
Authors: 
Brandstetter, Laura
Jacob, Martin
Year of Publication: 
2013
Series/Report no.: 
Arqus-Diskussionsbeiträge zur quantitativen Steuerlehre 153
Abstract: 
This paper studies the effect of corporate taxes on investment. Using firm-level data on German corporations, we investigate the 2008 tax reform that cut corporate taxes by 10 percentage points. We expect heterogeneous investment responses across firms, since firms with a foreign parent have more cross-country profit shifting opportunities than domestically owned firms. Using a matching difference-in-differences approach, we show that, following the corporate tax cut, domestically owned firms increased investments to a larger extent than foreign-owned firms. Our results imply that corporate tax changes can increase corporate investment but have heterogeneous investment responses across firms.
Subjects: 
Corporate taxation
Investment
JEL: 
G31
H24
H25
Document Type: 
Working Paper

Files in This Item:
File
Size
322.86 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.