סמינר במימון חשבונאות

Martin Jacob,  WHU Otto Beisheim School of Management  

We examine corporate tax avoidance in a setting where shareholders might not bear the entire economic burden of

the corporate tax because the firm’s market power allows it to pass on the burden to workers or consumers.

Depending on the model conditions, tax avoidance increases or decreases in market power. Using empirical analyses,

we find that high market power firms avoid less tax than low market power firms. We also find empirical support for

the model conditions underlying this result. Our findings suggest that firms with high market power report

high tax rates but pass the tax burden to workers or consumers while maximizing after-tax profits.