Do gaming companies benefit from the IP Box tax rate? Multinational, Polish and Wielkopolskie voivodeship perspective
This article aims to verify the impact of the reduced IP Box tax rate on the revenues of gaming companies and Gibrat’s Law stating that firm growth is independent of a company’s size. The dynamic panel-data models estimated in this article using GMM, FE panel data and OLS methods were created based...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Adam Mickiewicz University in Poznań
2022-12-01
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| Series: | Rozwój Regionalny i Polityka Regionalna |
| Subjects: | |
| Online Access: | https://pressto.amu.edu.pl/index.php/rrpr/article/view/37034 |
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| Summary: | This article aims to verify the impact of the reduced IP Box tax rate on the revenues of gaming companies and Gibrat’s Law stating that firm growth is independent of a company’s size. The dynamic panel-data models estimated in this article using GMM, FE panel data and OLS methods were created based on data of 673 companies from 11 countries. We show that small gaming firms are growing faster than their larger rivals. Thus, we reject Gibrat’s Law. We did not find evidence that IP Box supports the firm’s growth except for the Wielkopolskie Voivodeship. More chances for IP Box’s (reduced to 5% income tax rate being in force in Poland since 2019) effects are given to firms with more remarkable and dynamic changes in capital intensity, intangibility and inventory. The gaming industry in Wielkopolska benefits more from IP Box than the rest of Poland.
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| ISSN: | 2353-1428 2957-1618 |