Tax avoidance and state ownership : The case of Sweden
(2021) In Economics Letters 208.- Abstract
- We propose a simple theoretical model for how a company with both private and state shareholders decides on its optimal tax policy. The model predicts that even in the absence of state shareholding, a company will not always pick a tax policy that minimizes taxes. Conversely, majority state ownership will generally not result in zero tax avoidance. Using panel regressions on the entire population of state-owned as well as publicly listed Swedish companies from 2000–2019, we find that a one standard deviation increase in state ownership increases corporate tax payments by around 14%.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/29653465-8d8e-43e3-be40-5965847c28c7
- author
- Hilling, Axel LU ; Lundtofte, Frederik LU ; Sandell, Niklas LU ; Sonnerfeldt, Amanda LU and Wilhelmsson, Anders LU
- organization
- publishing date
- 2021-09-01
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Tax avoidance, Ownership structure, State ownership, H26, G32
- in
- Economics Letters
- volume
- 208
- article number
- 110063
- publisher
- Elsevier
- external identifiers
-
- scopus:85115816643
- ISSN
- 0165-1765
- DOI
- 10.1016/j.econlet.2021.110063
- project
- Tax reporting for a sustainable society
- language
- English
- LU publication?
- yes
- id
- 29653465-8d8e-43e3-be40-5965847c28c7
- date added to LUP
- 2021-09-09 16:00:34
- date last changed
- 2022-04-27 03:47:55
@article{29653465-8d8e-43e3-be40-5965847c28c7, abstract = {{We propose a simple theoretical model for how a company with both private and state shareholders decides on its optimal tax policy. The model predicts that even in the absence of state shareholding, a company will not always pick a tax policy that minimizes taxes. Conversely, majority state ownership will generally not result in zero tax avoidance. Using panel regressions on the entire population of state-owned as well as publicly listed Swedish companies from 2000–2019, we find that a one standard deviation increase in state ownership increases corporate tax payments by around 14%.}}, author = {{Hilling, Axel and Lundtofte, Frederik and Sandell, Niklas and Sonnerfeldt, Amanda and Wilhelmsson, Anders}}, issn = {{0165-1765}}, keywords = {{Tax avoidance; Ownership structure; State ownership; H26; G32}}, language = {{eng}}, month = {{09}}, publisher = {{Elsevier}}, series = {{Economics Letters}}, title = {{Tax avoidance and state ownership : The case of Sweden}}, url = {{http://dx.doi.org/10.1016/j.econlet.2021.110063}}, doi = {{10.1016/j.econlet.2021.110063}}, volume = {{208}}, year = {{2021}}, }