TY - UNPD A1 - Alexander, Anna A1 - De Vito, Antonio A1 - Jacob, Martin T1 - Corporate tax reforms and tax-motivated profit shifting N2 - This paper examines the sensitivity of profit shifting to the corporate tax rate difference between a subsidiary and its parent company. We exploit tax rate variation stemming from European tax reforms over the period 2003-2013 while accounting for tax base adjustments that might affect firms’ profit shifting response to tax rate changes. We find that affiliates’ profits are sensitive to tax rate changes. However, tax base broadening reforms mitigate the tax rate incentives for profit shifting and significantly reduce the semi-elasticity of profits with respect to corporate tax rates. Finally, we provide evidence of a downward trend in the tax sensitivity of profit shifting, suggesting that the spread of anti-avoidance regulation may have successfully constrained profit-shifting strategies. T3 - FAccT Center Working Paper Series - 23/2016 KW - Internationales Steuerrecht KW - International taxation KW - Europäische Union KW - European Community KW - Steuerpolitik KW - Tax policy KW - Multinationale Unternehmen KW - Multinational firms KW - Gewinnverlagerung KW - Profit shifting Y1 - 2018 UR - https://opus4.kobv.de/opus4-whu/frontdoor/index/index/docId/647 UR - https://nbn-resolving.org/urn:nbn:de:hbz:992-opus4-6476 UR - https://ssrn.com/abstract=2841246 PB - WHU - Otto Beisheim School of Management CY - Vallendar ER -