Trade Credit and Taxes

• 成果类型: Article
• 署名作者: Desai, Mihir A.; Foley, C. Fritz; Hines, James R., Jr.
• 署名单位: Harvard University; National Bureau of Economic Research; University of Michigan System; University of Michigan
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00534
• 发表日期: 2016-03
• 页码: 132-139
• 关键词: capital structure; debt; INVESTMENT; BUSINESS; POLICY; entrepreneurship; CONTRACTS; benefits; FIRMS

摘要

This paper analyzes the extent to which tax differences affect the use of trade credit. U.S.-owned affiliates in low-tax countries use trade credit to lend, whereas those in high-tax countries use trade credit to borrow: 10% lower local tax rates are associated with net trade credit positions that are 1.4% higher as a fraction of sales. The use of trade credit to get capital out of low-tax, low-return environments is also illustrated by the temporary repatriation tax holiday in 2005, which was used most intensively by affiliates with positive net trade credit positions.