Eichfelder, Sebastian; Hechtner, Frank; Hundsdoerfer, Jochen - 2015
factor through tax avoidance strategies. Analyzing 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 FA factor in order to save tax payments. …