Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia

Determinants of the effective tax rate in the tourism sector: a dynamic panel data model

“…In this case, the premise consists in assuming that the deductible nature of financial expenses on the tax on profits, against the nondeductible nature of dividends, will result in the existence of a negative relationship between debt levels and effective tax rates. This is the finding of the studies by Calvé et al (2005), Fernández (2004), Liu and Cao (2007), Monterrey and Sánchez (2010), Plesko (2003), Richardson and Lanis (2007) and Sticney and McGee (1982), even though there has been no shortage of studies finding a positive relationship between debt levels and effective tax rates in companies bearing high levels of tax burden, which may represent a stimulus to obtain debt financing and reduce their effective tax rates. In this sense, we can mention Chen et al (2010), Feeny et al (2006) and Gupta and Newberry (1997).…”

“…There are numerous studies that confirm this positive relationship between profitability and the effective tax rate, among which we can mention those by Calvé et al (2005), Chen et al (2010), Fernández (2004, Gupta and Newberry (1997), Plesko (2003), Richardson and Lanis (2007), Stickney and McGee (1982) and Wilkie and Limberg (1993). Consequently, our hypothesis is: H 4 : Companies with greater profitability bear a greater tax burden.…”

“…Research studies conducted by Fernández (2004), Gupta and Newberry (1997), Richardson and Lanis (2007) and Fernández and Martínez (2011) reached this conclusion.…”

“…In this sense, we can mention the studies by Calvé et al (2005), Chen et al (2010), Zhang (2003), Fernández (2004), Gupta and Newberry (1997), Molina (2005), Monterrey and Sánchez (2010), Richardson and Lanis (2007) and Stickney and McGee (1982). However, there are other studies that find a direct relationship between capital intensity and the effective tax rate, such as those by Feeny et al (2006), Janssen and Buijink (2000), Plesko (2003) and Wilkinson et al (2001) as well as research studies that have not found clear evidence of the existence of a potential relationship between both variables, such as those by Fernández (2004) and Liu and Cao (2007).…”

“…The objectives sought by research on the ETR have namely been: (1) To study the consequences of modifications to national tax law on the ETR (Calvé, Labatut and Molina, 2005;Fernández, 2004;Fernández, Martínez and Álvarez, 2004;Garrido and Garrido, 2006;Gravelle, 1982;Guenther, 1994;Gupta and Newberry, 1992;Manzon and Smith, 1994;Martinez, Fernández and Álvarez, 2001;Scholes and Wolfson, 1992;Shevlin and Porter, 1992); (2) To perform a comparative analysis of different countries (Buijink Janssen and Schols, 2002;Collins and Shackelford, 1995;Devereux and Griffith, 1998;Fernández and Rubín, 2002;Fernández, Martínez and Álvarez, 2008;Jacobs and Spengel, 2000;Kim and Limpaphayom, 1998;Molloy, 1998);and (3) To research the factors that determine tax burden (Adhikari et al, 2006;Chen, Chen, Chen and Shevlin, 2010;Feeny, Gillmann and Harris, 2006;Fernández, 2004;Fernández andMartínez, 2009 andFonseca et al, 2011;Graham, 1996;Gupta and Newberry, 1997;Holland, 1998;Kern and Morris, 1992;Molina, 2012;Monterrey and Sánchez, 2010;Omer, Molloy and Ziebart, 1993;Porcano, 1986;Richardson and Lanis, 2007;Stickney and McGee, 1982;Wang, 19...…”