Effective corporate tax rates the effect of size, capital intensity, leverage, and other factors

Stickney, Clyde P.; McGee, Victor E.

doi:10.1016/s0278-4254(82)80004-5

Cited by 333 publications

(289 citation statements)

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“…Lastly, other research studies have not found significant relationships between size and effective tax rates, among which we can highlight those by Feeny et al (2006), Fernández (2004, Gupta and Newberry (1997), Hsieh (2013), Liu and Cao (2007), Stickney and McGee (1982) and Wilkinson, Steven and Geoff (2001).…”

Section: Size and Etrmentioning

confidence: 49%

“…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.…”

Section: Profitability and Etrmentioning

confidence: 75%

“…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).…”

Section: Asset Composition and Etrmentioning

confidence: 84%

“…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...…”

Section: The Effective Tax Rate (Etr): Literature Reviewmentioning

confidence: 99%

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Determinants of the effective tax rate in the tourism sector. A dynamic Panel Data Model

Rojas¹,

Rodríguez

Samper

2017

Tour. Manag. Stud.

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This paper presents a dynamic model of the Effective Tax Rate (ETR) in the tourism sector. A dynamic model where the lagged endogenous variable ETR has been included as a regressor to identify the dynamic structure of the variable due to the existence of temporal adjustments between the short and long run in ETR payments has been estimated. The empirical analysis based on a panel data set over the 2008-2013 period explores the determinants of the ETR variable by using a Generalised Method of Moments (GMM) estimator controlling for heterogeneity in the tourism sector. The Arellano-Bond system GMM estimator has been used to estimate the model. The study seeks to shed light on the determinants of tax burden in the tourism sector covering the lack of studies on this topic. The findings obtained suggest that the ETR borne is determined by size, financing structure and type of entity. We deem the finding of the existence of non-linear relationships between ETR and size and financing structure relevant.Keywords: Effective tax rate, asset composition, firm size, financial structure, equity, dynamic panel data, ROA. ResumenEste artículo presenta un modelo dinámico para el Tipo Impositivo Efectivo (TIE) en el sector turístico. Este modelo dinámico ha sido estimado usando la variable endógena retardada TIE como regresor para identificar la estructura dinámica de dicha variable, debido a la existencia de ajustes entre el corto y largo plazo en los pagos del TIE. El análisis empírico basado en datos de panel en el periodo 2008-2013 explora los determinantes de la variable TIE utilizándose el estimador del Método Generalizado de Momentos (GMM) controlando la heterogeneidad en el sector turístico. El estimador de Arellano-Bond ha sido utilizado para estimar el modelo. Este estudio busca arrojar luz sobre los determinantes de las cargas impositivas en el sector turístico debido a la escasez de estudios en esta materia. Los resultados obtenidos sugieren que el TIE se encuentra determinado por el tamaño, la estructura financiera y el tipo de empresa. Igualmente consideramos relevante el hallazgo de relaciones no lineales entre el TIE y el tamaño y la estructura de financiación.Palabras clave: Tipo impositivo efectivo, tamaño de la empresa, estructura financiera, datos de panel dinámico, ROA.

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Section: Size and Etrmentioning

confidence: 49%

Section: Profitability and Etrmentioning

confidence: 75%

Section: Asset Composition and Etrmentioning

confidence: 84%

Section: The Effective Tax Rate (Etr): Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of the effective tax rate in the tourism sector. A dynamic Panel Data Model

Rojas¹,

Rodríguez

Samper

2017

Tour. Manag. Stud.

View full text Add to dashboard Cite

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“…According to the literature on calculation of the effective tax rate (ETR), the ETR is commonly used to measure tax management, since it calculates the effective rate of the tax paid by companies (Stickney & McGee, 1982;Gupta & Newberry, 1997;Callihan, 1994;Mills, Erickson, & Maydew, 1998;Petroni & Shackelford, 1999;Gupta & Mills, 2002;Yin, 2003;Rego, 2003;Phillips, 2003;Minnick & Noga, 2010;Armstrong et al, 2011).…”

Section: Measurements To Identify Tax Management: Etr Cashetr and Btdmentioning

confidence: 99%

Corporate Governance Characteristics as a Stimulus to Tax Management

Gomes

2016

Rev. contab. finanç.

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This article aimed to investigate whether corporate governance uses tax management to increase companies' performance. The objective was checking whether corporate governance characteristics, such as remuneration paid to the executive board, segregation between Chairman and CEO, and the independence and composition of the Board of Directors, influence tax management in Brazilian companies. At the same time, it aimed to identify whether the preceding tax management is reflected on the subsequent tax management. To do this, a sample of 355 Brazilian companies listed on the BM&FBOVESPA between 2008 and 2014 was used, in order to find out whether their corporate governance characteristics influenced tax management, something identified by calculating ETR, CashETR, and BTD. As a result, it was found (i) that the remuneration paid to executives may be regarded as a characteristic influencing tax management in Brazilian firms, and (ii) that the preceding tax management influences the future tax management. In addition, it was found that Brazilian companies do not rule out tax management benefits, since the average effective rate in the sample under analysis was 25%, and it is statistically lower than the nominal rate of taxes on earnings in Brazil, which is 34%.

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The impact of Environmental Protection Agency penalties on financial performance

2018

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This study examines the impact of penalties assessed to publicly traded firms by the U.S. Environmental Protection Agency (EPA). Specifically, we look at whether there is an impact on earnings for firms that were fined by the EPA. There are two competing predictions regarding the impact of environmental penalties on earnings. Either there is no negative impact because firms allocate allowances for regulatory breaches or there is a negative impact because investors and stockholders have a preference to invest in efficient firms. This study contributes to the extant literature examining improvements in the business decision making related to corporate environmental management.

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Effective corporate tax rates the effect of size, capital intensity, leverage, and other factors

Cited by 333 publications

References 1 publication

Determinants of the effective tax rate in the tourism sector. A dynamic Panel Data Model

Determinants of the effective tax rate in the tourism sector. A dynamic Panel Data Model

Corporate Governance Characteristics as a Stimulus to Tax Management

The impact of Environmental Protection Agency penalties on financial performance

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