کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5092089 | 1375913 | 2013 | 14 صفحه PDF | دانلود رایگان |
This paper investigates the consequences of the corporate tax reform in Estonia in 2000. This unique reform nullified the taxation of retained earnings and maintained corporate income tax only on distributed profits. We investigate the outcome of the reform by comparing the performance of the affected firms in Estonia with that of firms from Latvia and Lithuania, the two other Baltic countries. We use firm-level financial data and the difference in differences approach for our analysis. The results are consistent with an increase in holdings of liquid assets and lower use of debt financing after the reform. A positive relationship of the reform with post-reform investment and productivity has also been found. The results point to a stronger effect on smaller firms.
- This paper estimates the effect of the corporate tax reform in Estonia in 2000.
- This unique reform nullified the taxation of retained earnings.
- The difference in differences and matching methods are implemented.
- The results indicate increase in firms' liquidity and decrease in debt financing.
Journal: Journal of Comparative Economics - Volume 41, Issue 4, November 2013, Pages 1092-1105