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This paper investigates the determinants of the effective tax rate (ETR) of German firms spanning the Germany … possibilities to reduce the tax burden, resulting in a negative association with ETR. Germany's tax reform of 2008 has a negative …
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Exploiting the German 2008 tax reform we employ an event study design to assess the effects of local corporate taxes on stock prices. We match firms to the local tax rates at their respective headquarters and analyze the differential stock market responses to the reform decision. We find that...
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