Niemann, Rainer
Does a tax exemption of retained profits strengthen the equity base of firms? / Rainer Niemann, Silke Rünger, and Peter Schmidt .-- , 2024
Bibliografía
Tax legislators have used a tax exemption of retained profits (TERP) to stimulate an increase in firms' equity by imposing a lock-in effect. We examine the Croatian TERP over the period 2013-2016 to investigate whether taxpayers use a TERP and whether it contributes to an increase in firms' equity. Our findings show that Croatian firms used the TERP, but its application varies substantially depending on the ownership structure of the firm. Compared to a control group, total equity of Croatian firms did not increase after the introduction of the TERP, indicating that firms used the TERP as a tax saving tool without changing their payout policy.
POLITICA FISCAL
EXENCIONES TRIBUTARIAS
EQUIDAD IMPOSITIVA
RETENCIONES TRIBUTARIAS
Rünger, Silke
Schmidt, Peter
FinanzArchiv 0015-2218 v. 80, n. 2, June 2024, p. 193-233
Does a tax exemption of retained profits strengthen the equity base of firms? / Rainer Niemann, Silke Rünger, and Peter Schmidt .-- , 2024
Bibliografía
Tax legislators have used a tax exemption of retained profits (TERP) to stimulate an increase in firms' equity by imposing a lock-in effect. We examine the Croatian TERP over the period 2013-2016 to investigate whether taxpayers use a TERP and whether it contributes to an increase in firms' equity. Our findings show that Croatian firms used the TERP, but its application varies substantially depending on the ownership structure of the firm. Compared to a control group, total equity of Croatian firms did not increase after the introduction of the TERP, indicating that firms used the TERP as a tax saving tool without changing their payout policy.
POLITICA FISCAL
EXENCIONES TRIBUTARIAS
EQUIDAD IMPOSITIVA
RETENCIONES TRIBUTARIAS
Rünger, Silke
Schmidt, Peter
FinanzArchiv 0015-2218 v. 80, n. 2, June 2024, p. 193-233