Factors Affecting Effective Corporate Income Tax Rate of the Czech and Russian "Blue Chips" in 2012 - 2015

Purina, Marina

doi:10.18267/j.efaj.177

Cited by 3 publications

(4 citation statements)

References 10 publications

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“…All firm-specific variables were found to be significant, which is consistent with previous research (Fatica et al, 2012;Fernández-Rodríguez et al, 2020;Purina, 2017;Sugeng and Badrus, 2020). A valuable finding is that signs of the coefficients for SIZE and ROA are different in model 1 compared with models 4, and 7.…”

Section: Tab 3 Results Of the Regression Analysisfull Samplesupporting

confidence: 91%

“…Negative coefficients for leverage are also pursuant to the existing state of knowledge (Fernández-Rodríguez et al, 2020;Fonseca-Díaz et al, 2014;Němec and Dulák, 2017;Purina, 2017). Capital intensity and inventory intensity demonstrated ambivalent signs.…”

Section: Tab 3 Results Of the Regression Analysisfull Samplementioning

confidence: 97%

“…• A company's leverage usually reduces the tax burden due to the fact that interest expenses are tax deductible, so the coefficient is predicted to be less than zero. Purina (2017) demonstrated this for the Czech Republic and the Russian Federation. The same effect for Romania was described by Lazar (2014).…”

Section: Hypothesesmentioning

confidence: 85%

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Human Freedom and Effective Corporate Income Tax Rates of CEE Listed Companies

Purina¹

2021

EFAJ

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This paper analyses firm-specific and country-specific factors that have an impact on the effective corporate income tax rates (ETR) for CEE listed companies based on data obtained from the BvD Amadeus database. Business factors analysed in this research are the company size, leverage, capital and inventory intensity, and return on assets. Concerning the country-specific factors, chosen were the statutory corporate income tax rate and cultural factors represented by personal and economic freedoms covered by the Human Freedom Index (HFI), making this study different from others. The tested hypotheses predict significance of all the stated variables. Nine models were analysed based on three ETR denominators (EBT; turnover; cash flow) and three groups of countries (whole sample; sample excluding Russia; sample consisted of Bulgaria, Croatia, Poland, and Romania). Based on the panel data regression analysis and particularly the Feasible Generalised Least Squares estimator, a significant impact on the ETR was found for all variables in all the models. The main variable of interest, the HFI, came always with a negative coefficient demonstrating that, for CEE countries, a higher level of freedom is associated with a lower ETR. Findings for the remaining variables are in line with the existing literature.

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Section: Tab 3 Results Of the Regression Analysisfull Samplesupporting

confidence: 91%

Section: Tab 3 Results Of the Regression Analysisfull Samplementioning

confidence: 97%

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Human Freedom and Effective Corporate Income Tax Rates of CEE Listed Companies

Purina¹

2021

EFAJ

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“…In addition, most studies on ECTR are in developed economies and limited in number due to lack of adequate data. Purina (2017) examined both internal and external factors as independent variables that affect effective corporate tax rate in Czech and Russian. The study conceptualised internal variables as intervening variable.…”

Section: Statement Of the Problemmentioning

confidence: 99%

Intervening Effect of Corporate Performance on the Relationship Between Investment Incentives and Effective Corporate Tax Rate for Manufacturing Firms in Kenya

NGANYI,

KOORI, PhD,

ABDUL, PhD

2024

strategicjournals.com

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Effective corporate tax rate remain a subject of interest to firms, policy makers and researchers. It measures real level of tax burden imposed by national tax system at firm level. The main problem is how to reduce it at firm level. To address this, government across the world implement various investment incentive framework aimed at lowering effecting corporate tax rate. The intention of low effective corporate tax rate is to influence investments, facilitate capital formation, increase productivity and grow firms. However, effective corporate tax rate in Kenya is still a problem averaging 31.3 percent for the last 10 years and has not been declining towards zero as recommended by the World Bank. Such high effective corporate tax rate militates against desired competitive corporate environment for the manufacturing sector. The manufacturing sector in Kenya has deteriorated to 7.4 percent contribution to gross domestic product which is less than 15 percent as envisaged in Kenya Vision 2030. This undesirable phenomenon therefore prompted the design of this study. The objective of the study was to determine the intervening effect of corporate performance on the relationship between investment incentives and effective corporate tax rate for manufacturing firms in Kenya. The theories underpinning this study were optimal corporate taxation, political power and neoclassical investment. The study adopted positivist philosophy and longitudinal research design. The target population was 1,092 firms registered with Kenya Association of Manufacturers. Stratified random sample of 278 firms provided secondary data for the period 2010 to 2020. Descriptive and inferential statistics were generated using panel data regression analysis. The intervening model was analysed at significance level of 5 percent. The findings established that corporate performance had intervening effect on the relationship between investment incentives and effective corporate tax rate. It was recommended that both the National Treasury and manufacturing firms should have a robust financial framework for monitoring and evaluation of how effective corporate tax rate responds to investment incentives and corporate performance. The study added to finance knowledge that fiscal policy affects corporate operations.

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The impact of the effective tax rate change on financial assets of commercial banks: The case of Visegrad group countries

Andrejovska,

Glova,

Regaskova

et al. 2024

E+M

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While many tax professionals have discussed corporate taxation in the banking sector and its effectiveness on bank institutions, investment decisions, bank size, asset structure, or bank rentability, there is little evidence of tax efficiency within V-4 Group. The research on banks and tax rates is mainly based on American data. Few papers solved banking stability and corporate taxes within the European countries. This paper examines effective corporate taxation in the banking sector of the V-4 Group and aims to find out how the effective tax rate change affects commercial banks’ financial assets. In this study, we examine the relationship between variables using regression analysis in which we assess the impact of ETR on bank financial assets. We examined data in the consolidated financial statements data of commercial banks and tested their impact on the economy. Our findings supported the theory that ETR impacts the banking sector, particularly capital and equity financing. However, the results did not prove the research hypothesis, in which we assumed that an increase in ETR would lead to an increase in financial assets. Based on our results, it leads to an increase in equity assets (7.34%) and a decline in debt assets (16.83%).

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Factors Affecting Effective Corporate Income Tax Rate of the Czech and Russian "Blue Chips" in 2012 - 2015

Cited by 3 publications

References 10 publications

Human Freedom and Effective Corporate Income Tax Rates of CEE Listed Companies

Human Freedom and Effective Corporate Income Tax Rates of CEE Listed Companies

Intervening Effect of Corporate Performance on the Relationship Between Investment Incentives and Effective Corporate Tax Rate for Manufacturing Firms in Kenya

The impact of the effective tax rate change on financial assets of commercial banks: The case of Visegrad group countries

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