The Financial Transaction Tax : an ANOVA Assessment of Selected EU Countries

• Autorzy: Manuela Raisová , Martina Regásková , Kornélia Lazányi
• Języki publikacji: EN

Abstrakty

EN

Research background: There are various forms of fiscal taxation of the financial assets. In recent times, the discussion about financial transaction tax in the EU is associated with finding the solution to problems due to great financial crisis. The European Commission has made some efforts to strengthen capital regulation and it has adopted the Directive about implementing enhanced cooperation in the field of financial transaction tax, where it analyzed options and impacts of FTT according to those countries which have already implemented similar transaction taxes in their national legislatives.
Purpose of the article: Our aim is to find out the economic relationship between FTT and economic growth and to analyze the effect of FTT within selected EU countries.
Methods: In this paper, we will analyze the banking environment in the EU area, and we emphasize the correlation between tax policy and economic growth. We will test FTT through three-way mixed-effects ANOVA, and analyze three Member states, Belgium, Ireland and the United Kingdom, which have very active attitude to implementation of FTT within other EU countries.
Findings & Value added: We are interested in: (1) testing the relationship between the financial transaction tax (FTT) and economic growth (GDP); and (2) to verify the hypothesis that FTT could improve GDP growth in a country. We assume that if a country has adopted FTT in its tax system, then it will lead to a significant GDP growth, and so it could lead to financial market improvement after the crisis. Our results have shown that an increase in FTT volume would lead only to a negligible increase in the economic growth. (original abstract)

Słowa kluczowe

EN

Taxation; Finance

PL

Opodatkowanie; Finanse

• Czasopismo: Equilibrium
• Rocznik: 2020
• Tom: 15
• Numer: nr 1
• Strony: 29--48

Twórcy

autor

Manuela Raisová

• Technical University of Košice, Slovakia

autor

Martina Regásková

• Technical University of Košice, Slovakia

autor

Kornélia Lazányi

• Óbuda University, Hungary

Bibliografia

• Andrejovska, A., & Pulikova, V. (2018). Tax revenues in the context of economic determinants. Montenegrin Journal of Economics, 14(1). doi: 10.14254/1800-5845/2018.14-1.10.
• Andries, K., Gallemore, J., & Jacob, M. (2017). The effect of corporate taxation on bank transparency: evidence from loan loss provisions. Journal of Accounting and Economics, 63(2-3). doi: 10.1016/j.jacceco.2017.03.004.
• Albertazzi, U., & Gambacorta, L. (2010). Bank profitability and taxation. Journal of Banking & Finance, 34(11).
• Anyakoha, C. (2019). Strategic management practice and micro-small enterprises financial performance in Imo, south east Nigeria. Acta Oeconomica Universitatis Selye, 8(1).
• Baltagi, B. H., Li, D., & Li, Q. (2006). Transaction tax and stock market behavior: evidence from an emerging market. Empirical Economics, 31(2). doi:10.1007/s00181-005-0022-9.
• Beatty, A., & Liao, S. (2014). Financial accounting in the banking industry: a review of the empirical literature. Journal of Accounting and Economics, 58(2-3). doi: 10.1016/j.jacceco.2014.08.009.
• Berger, A. N., & Bouwman, C. H. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1).
• Bobáková, V. (2003). Raising the profitability of commercial banks. Biatec, 11(4).
• Campbell, S., Covitz, D., Nelson, W., & Pence, K. (2011). Securitization markets and central banking: an evaluation of the term asset-backed securities loan facility. Journal of Monetary Economics, 58(5).
• Capelle-Blancard, G., & Havrylchyk, O. (2017). Incidence of bank levy and bank market power. Review of Finance, 21(3).
• Cappelletti, G., Guazzarotti, G., & Tommasino, P. (2017). The stock market effects of a securities transaction tax: quasi-experimental evidence from Italy. Journal of Financial Stability, 31.
• Claessens, S., Keen, M., & Pazarbasioglu, C. (2010). Financial sector taxation: the IMF's report to the G-20 and background material. Washington: International Monetary Fund.
• Colliard, J. E., & Hoffmann, P. (2013). Sand in the chips? Evidence on taxing transactions in modern markets. Social Science Research Network Working Paper Series, February.
• Darabos, É. (2016). Particularity of local taxation in Hungary. Acta Oeconomica Universitatis Selye, 5(1).
• De Haan, J., & Poghosyan, T. (2012). Size and earnings volatility of US bank holding companies. Journal of Banking & Finance, 36(11). doi: 10.1016/j.jbankfin.2012.07.008.
• De Mooij, R. A., & Keen, M. (2016). Debt, taxes, and banks. Journal of Money, Credit and Banking, 48(1).
• Detragiache, M. E., Tressel, M. T., & Turk-Ariss, R. (2018). Where have all the profits gone? European bank profitability over the financial cycle. International Monetary Fund.
• Dobrovič, J., Rajnoha, R., & Korauš, A. (2018). Effectiveness and performance of tax system in Slovak Republic in terms of its key non-macroeconomics factors. Oeconomia Copernicana, 9(4). doi:10.24136/oc.2018.030.
• Donohoe, M. P. (2015). The economic effects of financial derivatives on corporate tax avoidance. Journal of Accounting and Economics, 59(1). doi: 10.1016/j.jacceco.2014.11.001.
• European Commission (2013). Proposal for a Council Directive implementing enhanced cooperation in the area of financial transaction tax. Retrieved from: https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/com_2013_71_en.pdf (15.10.2019).
• European Commission (2019). Retrieved from: https://ec.europa.eu/taxation_customs/business/economic-analysis-taxation/data-taxation_en (15.10.2019).
• Gambacorta, L., Ricotti, G., Sundaresan, S. M., & Wang, Z. (2017). The effects of tax on bank liability structure. Bank of Italy Temi di Discussione (Working Paper), 1101.
• Gov.uk (2019). Retrieved from: https://www.gov.uk/government/publications/stamp-duty-and-stamp-duty-reserve-tax-transfer-schemes-of-arrangement/stamp-duty-and-stamp-duty-reserve-tax-transfer-schemes-of-arrangement (15.10.2019).
• Griffith-Jones, S., & Persaud, A. (2012). Financial transaction taxes. Study prepared for-and presented to-the Committee on Economic and Monetary Affairs of the European Parliament.
• Griffith-Jones, S., & Persaud, A. (2012). Why critics are wrong about a financial transaction tax. European Voice, March.
• Haviernikova, K., & Kordos, M. (2019). The SMEs' perception of financial risks in the context of cluster cooperation. Quantitative Finance and Economics, 3(3). doi: 10.3934/QFE.2019.3.586.
• Hemmelgarn, T., Nicodème, G., Tasnadi, B., & Vermote, P. (2016). Financial transaction taxes in the European Union. National Tax Journal, 69(1). doi:10.17310/ntj.2016.1.07.
• Hilkevics, S., & Semakina, V. (2019). The classification and comparison of business ratios analysis methods. Insights into Regional Development, 1(1). doi: 10.9770/ird.2019.1.1(4).
• Hvozdyk, L., & Rustanov, S. (2016). The effect of financial transaction tax on market liquidity and volatility: an Italian perspective. International Review of Financial Analysis, 45. doi: 10.1016/j.irfa.2016.01.018.
• Irish Congress of Trade Unions (2012). Retrieved from: https://www.fsunion.org/download/pdf/the_case_for_the_ftt.pdf (15.10.2019).
• Jacobs, B., & Boadway, R. (2014). Optimal linear commodity taxation under optimal non-linear income taxation. Journal of Public Economics, 117. doi: 10.1016/j.jpubeco.2014.04.012.
• Ključnikov, A., Mura, L., & Sklenár, D. (2019). Information security management in SMEs: factors of success. Entrepreneurship and Sustainability Issues, 6(4). doi: 10.9770/jesi.2019.6.4(37).
• KPMG International (2019). Retrieved from: https://assets.kpmg/content/dam/kpmg/xx/pdf/2016/10/the-profitability-of-eu-banks.pdf (15.10.2019).
• Libby, R., Bloomfield, R., & Nelson, M. W. (2002). Experimental research in financial accounting. Accounting, Organizations and Society, 27(8).
• Mihokova, L., Andrejovska, A., & Martinkova, S. (2018). Tax competitiveness of EU member states in the context of corporate taxation. Politicka Ekonomie, 66(5). doi: 10.18267/j.polek.1206.
• Mittelman, A., Mucha, B., & Peracek, T. (2017). Securities and its characters as the part of the capital market of the Slovak republic. In: Economic and social development. International scientific conference on economic and social development.
• Mura, L., Daňová, M., Vavrek, R., & Dúbravská, M. (2017). Economic freedom - classification of its level and impact on the economic security. AD ALTAJournal of Interdisciplinary Research, 7(2).
• Mura, L., Havierniková, K, & Machová, R. (2017). Empirical results of entrepreneurs' network: case study of Slovakia. Serbian Journal of Management, 12(1).
• Okanazu, O. O. (2018). Financial management decision practices for ensuring business solvency by small and medium scale enterprises. Acta Oeconomica Universitatis Selye, 7(2). doi:10.9770/jesi.2019.6.4(9).
• Okanazu, O. O., Madu, M. A., & Igboke, S. A. (2019). A recipe for efficient and corrupt free public sector. Central European Journal of Labour Law and Personnel Management, 2(1). doi: 10.33382/cejllpm.2019.02.03.
• Osipov, G. V., Glotov, V. I., & Karepova, S. G. (2018). Population in the shadow market: petty corruption and unpaid taxes. Entrepreneurship and Sustainability Issues, 6(2). doi: 10.9770/jesi.2018.6.2(16).
• Peracek, T., Kocisova, L., & Mucha, B. (2018). The position and importance of stock exchange market and central securities depository as the inseparable part of the capital market of the Slovak Republic. Finance and sustainability. Springer proceedings in business and economics. Springer. doi: 10.1007/978-3-319-92228-7_16.
• Pomeranets, A., & Weaver, D. G. (2011). Security transaction taxes and market quality (No. 2011-26). Bank of Canada.
• Rabatinová, M., & Kušnírová, J. (2015). The Bank Levies in Slovakia and in other EU countries. Bankové odvody v SR av EÚ, 4.
• Rennekamp, K., Rupar, K. K., & Seybert, N. (2014). Impaired judgment: the effects of asset impairment reversibility and cognitive dissonance on future investment. Accounting Review, 90(2).
• Revenue.ie (2019). Retrieved from: https://www.revenue.ie/en/additionalincomes/dirt/index.aspx (15.10.2019).
• Rühl, T., & Stein, M. (2014). Discovering and disentangling effects of US macroannouncements in European stock markets. SSRN, 2462515. doi: 10.2139/ssrn.2462515.
• Schäfer, D., Schulmeister, S., Vella, J., Masciandaro, D., Passarelli, F., & Buckley, R. P. (2012). The financial transaction tax-Boon or bane? Intereconomics, 47(2).
• Schandlbauer, A. (2017). How do financial institutions react to a tax increase? Journal of Financial Intermediation, 30. doi:10.1016/j.jfi.2016.08.002.
• Schulmeister, S. (2008). A general financial transaction tax motives, revenues, feasibility and effects. WIFO, March, 1819.
• Schulmeister, S. (2009). A general financial transaction tax: a short cut of the pros, the cons and a proposal. doi: 10.2139/ssrn.1714336.
• Statistical Data Warehouse (2019). Retrieved from: http://sdw.ecb.europa.eu (15.10.2019).
• taxpayersalliance.com (2019). Retrieved from: https://www.taxpayersalliance.com/bank_levy_briefing (30.11.2019).
• Thomson Reuters (2019). Retrieved from: https://uk.practicallaw.thomsonreuters.com/3-503-0590?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1 (30.11.2019).
• Von Weizsäcker, J., & Darvas, Z. (2010). Financial transaction tax: small is beautiful. Directorate-General for Internal Policies. PE, 429, 2009-08.
• Wang, G. H., & Yau, J. (2012). Would a financial transaction tax affect financial market activity? Insights from future markets. Cato Institute Policy Analysis, 72.
• Wollner, G. (2014). Justice in finance: the normative case for an international financial transaction tax. Journal of Political Philosophy, 22(4).

Identyfikatory

DOI

10.24136/eq.2020.002