TY - JOUR
AB - AbstractWe examine distortions caused by tax base allocation systems–separate accounting (SA) or formula apportionment (FA)–with respect to the allocation of assets and workforce within multinational entities (MNEs). The effects of both systems are intensively debated by EU Member States as they are striving to implement a European tax system. Its introduction would lead to a switch from SA to FA. Moreover, Pillar One of the recent global tax reform includes a mix of both tax base allocation systems. We find that, against the claims of the EU, FA does not necessarily create lower distortions of the factor allocation. Decisive for that assessment is the level of profit shifting under SA. Our results indicate that, in tendency, the factor allocation is more severely distorted by FA when the profit shifting possibilities were rather low under SA. In contrast to former studies, we highlight the importance of analyzing the status quo under the recently applied system (SA) in order to be able to assess the consequences of a switch from SA to FA. Our results are interesting for policy-makers as they help anticipating reactions of MNEs to a change in the applied tax base allocation system and for companies as a basis for future tax planning.
AU - Ortmann, Regina
AU - Pummerer, Erich
ID - 41192
JF - Journal of Business Economics
KW - Economics and Econometrics
KW - Business and International Management
SN - 0044-2372
TI - Distortional effects of separate accounting and formula apportionment on factor allocation
ER -
TY - JOUR
AU - Koch, Reinald
AU - Holtmann, Svea
AU - Giese, Henning
ID - 46042
IS - 1-2
JF - Journal of Business Economics
SN - 0044-2372
TI - Losses Never Sleep – The Effect of Tax Loss Offset on Stock Market Returns during Economic Crises
VL - 93
ER -
TY - JOUR
AB - We analyze the impact of wealth taxes on investment timing decisions under uncertainty and irreversibility by employing a real options model of the Dixit/Pindyck type. Considering that wealth taxes have been (re-)introduced or are under discussion in many countries, investors need decision rules for tax systems with wealth taxation. We integrate different valuation methods for wealth tax purposes, distinguish between broadly and narrowly defined wealth taxes and vary the wealth tax rate to ascertain which wealth tax design is more or less likely to accelerate or delay investment. Our main findings are threefold. First, historical cost valuation reduces the distortive timing effects of wealth taxation compared to fair value accounting. Second, broadening the wealth tax base tends to accelerate investment during high interest rate periods and delay investment during low interest rate periods. Our results predict that wealth taxes with a broad tax base are likely to discourage risky investment in times of near-zero interest rates. These distortive wealth tax base effects, however, can be avoided by granting sufficiently high depreciation deductions for wealth tax purposes. Third, the investment timing effects of wealth tax rate variations are very sensitive to the riskiness of the underlying investment. Moreover, investment timing effects crucially depend upon the depreciation rate for wealth tax purposes. A tax legislator who aims to encourage risk taking should introduce generous depreciation deductions. Our study indicates that if a wealth tax is considered to be politically inevitable, possible harmful investment effects can be mitigated by choosing appropriate valuation methods and parameters.
AU - Niemann, Rainer
AU - Sureth-Sloane, Caren
ID - 4996
IS - 4
JF - Journal of Business Economics
SN - 0044-2372
TI - Investment Timing Effects of Wealth Taxes under Uncertainty and Irreversibility
VL - 89
ER -
TY - JOUR
AU - Reimsbach, Daniel
ID - 47907
IS - 4
JF - Journal of Business Economics
KW - Economics and Econometrics
KW - Business and International Management
SN - 0044-2372
TI - Pro forma earnings disclosure: the effects of non-GAAP earnings and earnings-before on investors’ information processing
VL - 84
ER -
TY - JOUR
AU - Maßbaum, Alexandra
AU - Klotzkowski, Tasja
AU - Sureth-Sloane, Caren
ID - 5054
IS - 12
JF - Zeitschrift für Betriebswirtschaft
SN - 0044-2372
TI - Der Einfluss der Zinsschranke auf unternehmerische Kapitalstrukturentscheidungen
VL - 82
ER -
TY - JOUR
AU - Sureth-Sloane, Caren
ID - 5058
IS - S5
JF - Zeitschrift für Betriebswirtschaft
SN - 0044-2372
TI - Does insider shareholding matter to corporate payout reactions to tax reforms?
VL - 82
ER -
TY - JOUR
AU - Sureth-Sloane, Caren
AU - Bäumer, Michaela
ID - 5097
IS - 2
JF - Zeitschrift für Betriebswirtschaft
SN - 0044-2372
TI - Besteuerung multinationaler Unternehmen in der EU – eine vergleichende Analyse ausgewählter Reformvorschläge
VL - 80
ER -
TY - JOUR
AU - Hundsdoerfer, Jochen
AU - Kiesewetter, Dirk
AU - Sureth-Sloane, Caren
ID - 14927
IS - 1
JF - Zeitschrift für Betriebswirtschaft
SN - 0044-2372
TI - Forschungsergebnisse in der Betriebswirtschaftlichen Steuerlehre — eine Bestandsaufnahme
VL - 78
ER -