342,257 research outputs found

    The Incidence and Efficiency Costs of Corporate Taxation when Corporate and Noncorporate Firms Produce the Same Good

    Get PDF
    This year marks the twenty-fifth anniversary of Arnold Harberger's celebrated model of the corporation income tax. While the model has been enormously useful as an analytical device for studying two sector economies, its usefulness for understanding the incidence and excess burden of the corporate income tax remains in question. One difficulty confronting all empirical analyses of the Harberger Model is how to treat noncorporate production in primarily corporate sectors and corporate production in primarily noncorporate sectors. The Harberger Model provides no real guide to this question since it assumes that one good is produced only by corporations and the other good is produced only by noncorporate firms. Stated differently, Harberger models the differential taxation of capital used in the production of different goods, rather than the taxation of capital used by corporations per se. This paper presents a two good model with corporate and noncorporate production of both goods. The incidence of the corporate tax in our Mutual Production Model (MPM) can differ markedly from that in the Harberger model. A hallmark of Harberger's corporate tax incidence formula is its dependence on differences across sectors in elasticities of substitution between capital and labor. In contrast, the incidence of the corporate tax in the MPM may fall 100 percent on capital regardless of sector differences in substitution elasticities. The difference between the two models in the deadweight loss from corporate taxation is also striking. Using the Harberger - Shoven data and assuming unitary substitution and demand elasticities, the deadweight loss is over ten times larger in the CES version of the MPM than in the Harberger Model. Part of the explanation for this difference is that in the Harberger Model only the difference in the average corporate tax in the two sectors is distortionary, while the entire tax is distortionary in the MPM. A second reason for the larger excess burden in the MPM is that the MPM has a very large, indeed infinite, substitution elasticity in demand between corporate and noncorporate goods; in contrast, applications of the Harberger Model assume this elasticity is quite small.

    Multinational Capital Structure and Tax Competition

    Get PDF
    This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corporate taxes and multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low-tax to high-tax countries. The Nash equilibrium of the tax competition game is characterized by underprovision of publicly provided goods. Under formula apportionment, the country-specific capital-to-debt ratio of a multinational's affiliate is independent of the jurisdiction's tax rate. Public good provision is either too large or too small. If the formula is predominately based on capital shares and if there is a positive debt externality there is clearly underprovision under formula apportionment.Multinational enterprises, financial policy, profit shifting, corporate taxation, tax competition.

    Globalisation and the mix of wage and profit taxes

    Get PDF
    This paper analyses the development of the ratio of corporate taxes to wage taxes using a simple political economy model with internationally mobile and immobile firms. Among other results, our model predicts that countries reduce their corporate tax rate, relative to the wage tax, either when preferences for public goods increase or when a rising share of capital is employed in multinational firms. The predicted relationships are tested using panel data for 23 OECD countries for the period 1980 through 2001. The results of the empirical analysis support our central hypotheses

    Multinational Capital Structure and Tax Competition

    Get PDF
    This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corporate taxes and multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low-tax to high-tax countries. The Nash equilibrium of the tax competition game is characterized by underprovision of publicly provided goods. Under formula apportionment, the country-specific capital-to-debt ratio of a multinational’s affiliate is independent of the jurisdiction’s tax rate. Public good provision is either too large or too small. If the debt externality is not negative, there is clearly underprovision under formula apportionment.multinational enterprises, financial policy, profit shifting, corporate taxation, tax competition

    Pengaruh Tipe Perusahaan, Umur Perusahaan, Kinerja Keuangan, Corporate Governance, Struktur Modal Dan Growth Terhadap Pengungkapan Tanggung Jawab Lingkungan Pada Perusahaan Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia

    Get PDF
    The company is currently trying to maintain its viability so that the company can develop and compete with other companies or the like. The very sluggish economic conditions had a direct impact on the company. One of the sectors affected is consumer goods companies. The purpose of this study was to determine the effect of company type, company age, financial performance, corporate governance, capital structure and growth on disclosure of environmental responsibility in consumer goods companies listed on the Indonesia Stock Exchange. The research population used was 51 consumer goods companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The sampling technique is saturated because this research uses data on the type of company, age of the company, returns on assets, corporate governance, total debt, equity and sales. The results show that partially the type of company has no effect on the disclosure of environmental responsibility in consumer goods companies listed on the Indonesian stock exchange. Partially, the age of the company affects the disclosure of environmental responsibility in consumer goods companies listed on the Indonesian stock exchange. Partially, financial performance does not affect the disclosure of environmental responsibility in consumer goods companies listed on the Indonesian stock exchange. Partially, corporate governance affects the disclosure of environmental responsibility in consumer goods companies listed on the Indonesian stock exchange. Partially, the capital structure has no effect on the disclosure of environmental responsibility in consumer goods companies listed on the Indonesian stock exchange. Partially, growth does not affect the disclosure of environmental responsibility in consumer goods companies listed on the Indonesian stock exchange. Keywords : Company Type, Company Age, Financial Performance, Corporate Governance, Capital Structure, Growth, Environmental Responsibility

    Pengaruh corporate social responsibility, capital expenditure, keputusan investasi dan leverage terhadap nilai perusahaan pada perusahaan sektor consumer goods yang terdaftar di Bursa Efek Indonesia tahun 2016-2019

    Get PDF
    The purpose of this study was to examine the effect of Corporate Social Responsibility, Capital Expenditure, Investment Decisions, and Leverage on Firm Value in consumer goods industry sector companies listed on the Indonesia Stock Exchange n 2016-2019 period. Firm value show how effective is the firm performance in line with the prosperity of shareholders and perception of investors to the company. This research used a method with a quantitative descriptive approach. The population in this study were the consumer goods companies listed in Indonesia Stock Exchange (IDX) during the period 2016 to 2019 with a total of 40 companies and the sampling technique used purposive sampling and obtained 24 companies in consumer goods sector. Data analysis used multiple linear regression analysis, classical assumption test, the coefficient of determination test, F test and t test. The results of the study show that partially corporate social responsibility, capital expenditure and investment decisions have significant effect on the firm value but leverage have no effect on the firm value. Variable corporate social responsibility, capital expenditure, investment decisions and leverage simultaneously have a significant effect on firm value in consumer goods industry sector listed on Indonesia Stock Exchange in 2016-2019

    ANALISIS GOOD CORPORATE GOVERNANCE DAN STRUKTUR MODAL TERHADAP NILAI PERUSAHAAN DENGAN KINERJA KEUANGAN SEBAGAI VARIABEL MEDIASI

    Get PDF
    The purpose of this study is to analyze the effect of good corporate governance and capital structure on firm value with the mediating role of financial performance in consumer goods companies in the cyclicals sector listed on the Indonesia Stock Exchange in 2019-2021. This research is a quantitative research with a descriptive approach. The data used in this study is secondary data in the form of company financial statements obtained from the IDX data. The sample used in this study was 197 consumer goods companies in the cyclical sector listed on the IDX (Indonesian Stock Exchange) in 2019-2021. Data analysis techniques in this study using SPSS. The results in this study indicate that good corporate governance and capital structure affects firm value. Meanwhile, financial performance cannot mediate good corporate governance and capital structure on firm valu

    Factor Influence Analysis of Corporate Value with Firm Size As Moderator Variable in Indonesia Stock Exchange

    Get PDF
    Corporate value is the representation of people’s judgement towards the company’s performance in general that usually correlated with stock price. Maximizing corporate value is the main goal of a company. By doing so, it will also improve the prosperity of shareholders. This present study aims to analyze the influence of capital structure, dividend policy, and profitability towards the corporate value by involving firm size as the moderator variable. The subjects are the companies of consumer goods industry sector that has been registered in Indonesia Stock Exchange from 201 until 2016. The result showed that capital structure, dividend policy, and profitability simultaneously have influence towards the corporate value with coefficient of determination (R2) 20.17%. Thus, moderately, firm size can negatively moderate the correlation between capital structures towards corporate value. However, it cannot moderate the correlation between ldividend policies towards the corporate value. Keywords: Corporate Value, Capital Structure, Dividend Policy, Profitability, Firm Siz

    Pengaruh Corporate Social Responsibility, Capital Intensity Dan Risk Management Terhadap Agresivitas Pajak

    Get PDF
    Abstract            This study aims to test and obtain empirical evidence of the effect of corporate social responsibility, capital intensity and risk management on tax aggressiveness. Sampling using purposive sampling method obtained a sample of 13 companies with 65 data. The population in this study are manufacturing companies in the consumer goods industry sector in IDX for the 2016–2020 finacial year. The regression method of this study is multiple liner regression. The regression results show that there is not significant association between corporate social responsibility, risk management and corporate tax aggressiveness. This means that the size of CSR disclosure and the existence of a risk management committee in the company have no effect on the level of tax aggressiveness in manufacturing companies in the consumer goods industry sector. And the regression results show that there is significant association between capital intensity and corporate tax aggressiveness. This means that the size of the intensity of fixed assets in the company have effect on the level of tax aggressiveness in manufacturing companies in the consumer goods industry sector

    Globalisation and the Mix of Wage and Profit Taxes

    Get PDF
    This paper analyses the development of the ratio of corporate taxes to wage taxes using a simple political economy model with internationally mobile and immobile firms. Among other results, our model predicts that countries reduce their corporate tax rate, relative to the wage tax, either when preferences for public goods increase or when a rising share of capital is employed in multinational firms. The predicted relationships are tested using panel data for 23 OECD countries for the period 1980 through 2001. The results of the empirical analysis support our central hypotheses.capital and labour taxes, economic integration, multinational firms
    • …
    corecore