Eichfelder, Sebastian; Hechtner, Frank; Hundsdoerfer, Jochen - 2017
factor through tax avoidance strategies. Analysing FA tax effects of the German local business tax with payroll expense as … extensive margin. In addition, we find evidence of an indirect FA spillover effect on capital investment. Our findings on tax … avoidance proxies are consistent with tax-induced manipulations of payroll expense as an FA factor to save tax payments. …