Determinants of the Effective Tax Rate in the BRIC Countries

Rodríguez, Elena Fernández; Arias, Antonio Manuel Martínez

doi:10.2753/ree1540-496x5003s313

Cited by 41 publications

(23 citation statements)

References 26 publications

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“…Conversely, Chen Chen et al (2010), Derashid and Zhang (2003), Harris and Feeny (1999), Janssen (2005), Kim and Limpaphayom (1998), Porcano (1986), and Richardson and Lanis (2007) show a negative relationship, maintaining that firm size may be inversely related to the tax burden. However, Gupta andNewberry (1997), Fernández-Rodríguez andMartínez-Arias (2014), Zimmerman (1983), Feeny et al (2006), Fernández-Rodríguez (2004, Liu and Cao (2007), Stickney and McGee (1982) and Wilkinson et al (2001) do not show any significant relationship between firm size and ETR.…”

Section: Literature Reviewmentioning

confidence: 94%

“…According to this traditional approach, Modigliani and Miller (1963) maintain that the tax savings that result from business leverage mean that the value of the firm depends not only on the value of investment opportunities but also on any financing decisions taken. In fact, they state that only when the existence of CIT is considered does the value of the leveraged firm equal that of the unleveraged firm plus the value of the debt tax shield (Fernández-Rodríguez and Martínez-Arias, 2014). The relationship between leverage and tax burden has been tested empirically in studies such as those by Calvé Pérez et al ( 2005), Noor et al (2010), Plesko (2003), Lanis (2007), Fernández-Rodríguez (2004), Liu and Cao (2007), and Stickney and McGee (1982), which find a negative relationship between leverage and tax burden in line with this traditional approach.…”

Section: Literature Reviewmentioning

confidence: 99%

“…When considering the relation between ETR and assets, we should remember that the sector of activity clearly determines the asset mix, so the possibility of obtaining lower ETRs will depend on the volume of current assets that firms need for their activity and, more specifically, on their inventory level. From this perspective, investment in inventories is considered an alternative to using funds for tangible fixed assets, so it limits the possibility of reducing the ETR (Fernández-Rodríguez and Martínez-Arias, 2014). Inventory intensity could therefore be considered to lead to a larger tax burden.…”

Section: Literature Reviewmentioning

confidence: 99%

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Panel Data Analysis on Corporate Effective Tax Rates of Some Listed Large Firms in Nigeria

Adams

Balogun²

2020

DUTCH J FINANCE MANA

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Corporate effective tax rates (ETR) of large Nigerian listed firms during the new tax regime as well as the influence of firm size, leverage, return on asset, capital intensity, and inventory intensity on corporate effective tax rate was investigated. The study aims to examine the influence of some corporate tax attributes in some selected large public listed firms within and across Nigeria with avoidance of corporate effective tax rates (ETR). The data used in the study was extracted from the 2019 Nigeria Annual Financial reports. The data were collected from the period 2012 to 2018, the period where Nigeria imposed a new tax regime on the current year assessment system (effective from the year 2012). Pooled ordinary least square (POLS), fixed effect and random effect regression were applied to the data, findings from the study revealed that the random effect regression model was preferred for result interpretation. It was also discovered that; firm size (FSIZE), return on assets (ROA), and inventory intensity (INVINT) have a positive and significant influence on corporate effective tax rates (ETR) avoidance. Firm leverage (LEV) and capital intensity (CAPINT) on the other hand has an insignificant inverse influence on effective tax rates (ETR). Hence, this study suggested that firm size (FSIZE), return on assets (ROA), and inventory intensity (INVINT) is the major variable that positively influences the corporate effective tax rates (ETR) the listed large firms in Nigeria.

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Section: Literature Reviewmentioning

confidence: 94%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Panel Data Analysis on Corporate Effective Tax Rates of Some Listed Large Firms in Nigeria

Adams

Balogun²

2020

DUTCH J FINANCE MANA

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“…They claim that firms may delay tax payments only in short run by taking advantage of tax code. Fernández-Rodríguez & Martínez-Arias (2014) analyze the determining factors of effective corporate income tax rates focusing on BRIC (Brazil, Russia, India, and China) countries. They point out that larger firms bear higher tax burden especially in Brazil and China.…”

Section: Literature Reviewmentioning

confidence: 99%

Effective Corporate Income Tax Rates: Southern and Northern Economies of the European Union

Balios¹,

Eriotis

Tantos³

et al. 2020

ijafr

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In the present study, we attempt to investigate the determinants of the effective corporate tax rate of companies of the European Union (EU) discriminating between northern and southern economies. We adopt in our analysis the period after the outbreak of the crisis in the Eurozone up today including some years before 2009 in the assessed period. Our empirical investigation is based on three alternative approaches to effective income tax rate based on accounting information. We investigate the determinants of ECITR assessing two sub-samples of firms from all the aforementioned industrial sectors for 16 member countries of Europe. The first sub-sample consists of firms from 12 member countries of "North" European Union and the second sub-sample consists of firms from 4 member countries of "South" European Union. The analysis covers the period 2004-2016. Estimation results point out that the effective corporate income tax rate is variously affected by firm-specific determining factors for both northern and southern economies. The relation between ECITR and determining factors is ascertained to be less significant (sensitive) during the pre-crisis period in comparison with the respective empirical findings after the outburst of the economic crisis in the European Union. Empirical findings indicate that effective corporate income tax rate is more vulnerable to financial leverage for southern economies in comparison to the northern economies signaling financing structure differences between the two EU-country groups. Finally, there is evidence that there is an indisputable and positive coexistence between business profitability and tax burden.

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“…Na última década as economias emergentes cresceram mais rapidamente do que as economias desenvolvidas, desempenhando um papel importante para a economia mundial. Os países latino-americanos compartilham certas características relacionadas a dimensão econômica e ao potencial de desenvolvimento (FERNÁNDEZ-RODRÍGUEZ; MARTÍNEZ-ARIAS, 2014). De acordo com Cano (2009), existem semelhanças em relação as pautas exportadoras, constituídas principalmente por produtos primários ou semimanufaturados nos países latino-americanos.…”

Section: Introductionunclassified

Determinantes da Taxa de Imposto Efetiva de Empresas da América Latina

Santana¹,

Zonatto²

2016

SCG

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ResumoO objetivo do estudo foi de identificar os fatores determinantes da taxa de imposto efetiva (ETR) de empresas da América Latina no período de 2009 à 2013. Estudo descritivo foi realizado por meio de pesquisa documental, com abordagem quantitativa dos dados. A amostra foi composta por 500 empresas, sendo 45 da Argentina, 171 do Brasil, 108 do Chile, 38 da Colômbia, 71 do México e 67 do Peru, cujos dados foram coletados na base de dados da Thompson Reuters® e analisados por meio de regressão de dados em painel através do software STATA®, tendo como variável dependente a Taxa de Imposto Efetiva (ETR) e variáveis independentes o tamanho (TAM), a intensidade de capital (INTCAP), a intensidade de inventário (INTINV), a alavancagem (ALAV) e a rentabilidade dos ativos (ROA). Os resultados evidenciam que o tamanho das empresas apresenta influência positivamente significativa sobre a ETR das empresas colombianas. A intensidade de capital (INTCAP) e a intensidade de inventário (INTINV) não foram significativas para determinar a influência sobre a ETR nos países analisados. A alavancagem das empresas argentinas evidencia uma influência positiva sobre a ETR, enquanto que para as empresas colombianas esta influência foi negativamente significativa e não significativa para os demais países. A rentabilidade resultou em uma influência negativa para as empresas mexicanas e peruanas, e não significante para os demais países para determinar a influência sobre a ETR. Denota-se que existem diferenças quanto aos determinantes da carga fiscal em países latino-americanos, o que estimula a realização de novos estudos.

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Determinants of the Effective Tax Rate in the BRIC Countries

Cited by 41 publications

References 26 publications

Panel Data Analysis on Corporate Effective Tax Rates of Some Listed Large Firms in Nigeria

Panel Data Analysis on Corporate Effective Tax Rates of Some Listed Large Firms in Nigeria

Effective Corporate Income Tax Rates: Southern and Northern Economies of the European Union

Determinantes da Taxa de Imposto Efetiva de Empresas da América Latina

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