Corporate Taxation and the Size of New Firms

Evidence From Europe

M. Da Rin, M. Di Giacomo, A. Sembenelli

Research output: Working paperDiscussion paperOther research output

260 Downloads (Pure)

Abstract

Using a novel country-industry level panel database with information on newly incorporated firms in 17 European countries between 1997 and 2004, we study how taxation of corporate income affects the size of entrants at the country-industry level. Our results, that are robust to changes in several assumptions, suggest that a reduction in the effective corporate income tax rate leads to a significant reduction of the capital size of entrants, and to a decrease in their capital-labor ratio.
Original languageEnglish
Place of PublicationTilburg
PublisherFinance
Number of pages14
Volume2009-72
Publication statusPublished - 2009

Publication series

NameCentER Discussion Paper
Volume2009-72

Fingerprint

Industry
Corporate taxation
New firms
Corporate income tax
Tax rate
Data base
Income
Taxation
Labor
European countries

Keywords

  • Entrepreneurship. Corporate income taxation. Incorporation. Firm entry. Firm size. Entry regulation. Panel data

Cite this

Da Rin, M., Di Giacomo, M., & Sembenelli, A. (2009). Corporate Taxation and the Size of New Firms: Evidence From Europe. (CentER Discussion Paper; Vol. 2009-72). Tilburg: Finance.
Da Rin, M. ; Di Giacomo, M. ; Sembenelli, A. / Corporate Taxation and the Size of New Firms : Evidence From Europe. Tilburg : Finance, 2009. (CentER Discussion Paper).
@techreport{480b604eee66474ca455fbac0b9b2892,
title = "Corporate Taxation and the Size of New Firms: Evidence From Europe",
abstract = "Using a novel country-industry level panel database with information on newly incorporated firms in 17 European countries between 1997 and 2004, we study how taxation of corporate income affects the size of entrants at the country-industry level. Our results, that are robust to changes in several assumptions, suggest that a reduction in the effective corporate income tax rate leads to a significant reduction of the capital size of entrants, and to a decrease in their capital-labor ratio.",
keywords = "Entrepreneurship. Corporate income taxation. Incorporation. Firm entry. Firm size. Entry regulation. Panel data",
author = "{Da Rin}, M. and {Di Giacomo}, M. and A. Sembenelli",
note = "Subsequently published in Journal of the European Economic Association, 2010 Pagination: 14",
year = "2009",
language = "English",
volume = "2009-72",
series = "CentER Discussion Paper",
publisher = "Finance",
type = "WorkingPaper",
institution = "Finance",

}

Da Rin, M, Di Giacomo, M & Sembenelli, A 2009 'Corporate Taxation and the Size of New Firms: Evidence From Europe' CentER Discussion Paper, vol. 2009-72, Finance, Tilburg.

Corporate Taxation and the Size of New Firms : Evidence From Europe. / Da Rin, M.; Di Giacomo, M.; Sembenelli, A.

Tilburg : Finance, 2009. (CentER Discussion Paper; Vol. 2009-72).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Corporate Taxation and the Size of New Firms

T2 - Evidence From Europe

AU - Da Rin, M.

AU - Di Giacomo, M.

AU - Sembenelli, A.

N1 - Subsequently published in Journal of the European Economic Association, 2010 Pagination: 14

PY - 2009

Y1 - 2009

N2 - Using a novel country-industry level panel database with information on newly incorporated firms in 17 European countries between 1997 and 2004, we study how taxation of corporate income affects the size of entrants at the country-industry level. Our results, that are robust to changes in several assumptions, suggest that a reduction in the effective corporate income tax rate leads to a significant reduction of the capital size of entrants, and to a decrease in their capital-labor ratio.

AB - Using a novel country-industry level panel database with information on newly incorporated firms in 17 European countries between 1997 and 2004, we study how taxation of corporate income affects the size of entrants at the country-industry level. Our results, that are robust to changes in several assumptions, suggest that a reduction in the effective corporate income tax rate leads to a significant reduction of the capital size of entrants, and to a decrease in their capital-labor ratio.

KW - Entrepreneurship. Corporate income taxation. Incorporation. Firm entry. Firm size. Entry regulation. Panel data

M3 - Discussion paper

VL - 2009-72

T3 - CentER Discussion Paper

BT - Corporate Taxation and the Size of New Firms

PB - Finance

CY - Tilburg

ER -

Da Rin M, Di Giacomo M, Sembenelli A. Corporate Taxation and the Size of New Firms: Evidence From Europe. Tilburg: Finance. 2009. (CentER Discussion Paper).