The Impact of Tax Pressure on Companies’ Performance Case Study: OECD Europe Zone

There are many factors that influence managers' confidence in the business environment. Of all these factors of influence, the impact of taxation on business performance is the subject of the present study. To analyze how taxation affects the business confidence index, we used data collected for OECD European countries in estimating two different regression models. Our results will show that managers take changes in taxation into account when they anticipate the evolution of the business environment.