Niklas Sandell
Senior lecturer
Tax avoidance and state ownership : The case of Sweden
Author
Summary, in English
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%.
Department/s
- Department of Business Law
- Accounting and Corporate Finance
- Department of Business Administration
- Department of Economics
Publishing year
2021-09-01
Language
English
Publication/Series
Economics Letters
Volume
208
Document type
Journal article
Publisher
Elsevier
Topic
- Economics
- Law (excluding Law and Society)
Keywords
- Tax avoidance
- Ownership structure
- State ownership
- H26
- G32
Status
Published
Project
- Tax reporting for a sustainable society
ISBN/ISSN/Other
- ISSN: 0165-1765