Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom


by ,

Effects of taxation on European multi-nationals’ financing and profits

Important determinants of multinational firms’ choice of location include, besides resource cost and infrastructure, the taxation regime through its effects on international pricing and profits. This paper investigates the effects of tax rates on firms’ profits and financing decisions by analyzing a panel of several hundred thousand European firms for the years 1985 to 2010. Results indicate that taxation has a negative effect on overall firm profits but not on returns on shareholder funds.

Share this article :

Related contents ...

Efficiency and productivity of tax courts
by Roberto Ippoliti and Giovanni B. Ramello

New Policy Paper Available: Taxing corporations: why it is not only bad, but unjust
by Pierre Bessard and Fabio Cappelletti


A report on the IREF Workshop in London (6th June 2016)

(Br)Exit Strategy



Any message or comments?

Show Form

 css js

By continuing browsing our website, you agree with our cookies policy
C L O S E

Monthly newsletter
Receive our publications for free