Firm responses to an interest barrier: empirical evidence

IF 2.2 3区 经济学 Q2 BUSINESS, FINANCE
Jarkko Harju, Ilpo Kauppinen, Olli Ropponen
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引用次数: 0

Abstract

In this paper, we study the effects of an interest barrier (IB) that was introduced in Finland in 2014 to restrict the profit-shifting opportunities of multinational enterprises (MNEs). We employ data from the Orbis database on Finnish, Swedish and Danish MNEs and a difference-in-differences methodology, where Swedish and Danish MNEs serve as a control group. We examine the effects of the IB on financial expenses, debt levels and overall economic activity of firms. We find that Finnish MNEs responded to the IB by decreasing their financial expenses. We also find that the most affected firms decreased their debt levels due to the reform. Our results also suggest that the financial expense response is followed by a change in the use of transfer pricing as a method to shift profits between tax jurisdictions. We do not find evidence of total output changes among treated firms, which suggests that the IB did not affect the real activity of the treated MNEs.

对利益障碍的坚定回应:经验证据
在本文中,我们研究了芬兰于2014年引入的利益壁垒(IB)的影响,该壁垒限制了跨国企业(MNEs)的利润转移机会。我们采用来自Orbis数据库的芬兰、瑞典和丹麦跨国公司的数据,并采用差异中的差异方法,其中瑞典和丹麦跨国公司作为对照组。我们研究了IB对财务费用、债务水平和企业整体经济活动的影响。我们发现芬兰跨国公司通过减少财务支出来应对IB。我们还发现,受影响最大的企业由于改革而降低了债务水平。我们的研究结果还表明,在财务费用反应之后,使用转移定价作为在税收管辖区之间转移利润的方法发生了变化。我们没有发现被处理公司总产出变化的证据,这表明IB没有影响被处理跨国公司的实际活动。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Fiscal Studies
Fiscal Studies Multiple-
CiteScore
13.50
自引率
1.40%
发文量
18
期刊介绍: The Institute for Fiscal Studies publishes the journal Fiscal Studies, which serves as a bridge between academic research and policy. This esteemed journal, established in 1979, has gained global recognition for its publication of high-quality and original research papers. The articles, authored by prominent academics, policymakers, and practitioners, are presented in an accessible format, ensuring a broad international readership.
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