Arbeitspapier
Taxes and financial reporting: Evidence from discretionary investment write-offs in Italy
This paper provides further empirical evidence on the relationship between taxes and financial reporting by focusing on accounting decisions to write-offs equity investments. The analysis is based on panel data for Italian companies. In the period 1998-2006 the Italian corporate income tax has been reformed several times. In particular the tax deductibility of write-offs of equity investment was repealed in 2004. The paper exploits the ensuing high cross-sectional and times series variation in the marginal tax rate to identify tax effects. The econometric analysis delivers strong evidence that taxes affect the probability of write-offs. In contrast there is no evidence that taxes affect the magnitude of the write-offs. The paper also tests for the existence of a trade-off between tax minimization and non tax costs such as financial reporting costs and agency costs. Surprisingly, the evidence of such trade-off is rather weak.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 3261
- Klassifikation
-
Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
Tax Law
Accounting
- Thema
-
corporate taxation
write-offs of equity investments
financial reporting
tax planning
Körperschaftsteuer
Steuerbegünstigung
Kapitalbeteiligung
Steuerwirkung
Bilanzpolitik
Steuerplanung
Italien
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Arachi, Giampaolo
Bucci, Valeria
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Arachi, Giampaolo
- Bucci, Valeria
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2010
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