The tax burden of listed companies in China

Huang, Da; Chen, Ni-Yun; Gao, Ko-Wei

doi:10.1080/09603107.2013.786163

Cited by 7 publications

(15 citation statements)

References 11 publications

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“…The previous literature gives contradictory results. Some works obtain a positive significant relationship with the ETR (Zimmerman, 1983; Gupta and Newberry, 1997; Calvé et al , 2005; Richardson and Lanis, 2007; Noor et al , 2010; Huang et al , 2013; Salaudeen and Eze, 2018), supporting the theory of political costs, by which the largest companies bear greater control by their governments, causing an increase in their tax burden.…”

Section: Hypothesesmentioning

confidence: 88%

“…Since investment in fixed assets has traditionally been linked to tax incentives, we expect capital intensity to have a negative effect on the ETR regardless of its formulation. Although some authors (Wu et al , 2007; Huang et al , 2013) find a positive, or even a nonsignificant, association (Liu and Cao, 2007; Fernández and Martínez, 2014; Moreno et al , 2017), most previous studies confirm this negative relationship (Gupta and Newberry, 1997; Calvé et al , 2005; Janssen, 2005; Richardson and Lanis, 2007; Noor et al , 2010; Fernández and Martínez, 2011; Hsieh, 2013; Salaudeen and Eze, 2018).…”

Section: Hypothesesmentioning

confidence: 97%

“…The literature can be classified into two groups depending on the main goal of the analyses. Some authors compare the corporate tax burden between countries/states/provinces (Buijink et al , 2002; Nicodeme, 2007; Álvarez et al , 2011; Fernández and Martínez, 2011, 2014; Chen et al , 2016; Bustos et al , 2017), while others focus on assessing the influence of economic-financial variables on corporate tax burden (Calvé et al , 2005; Hsieh, 2013; Huang et al , 2013; Delgado et al , 2014; Salaudeen and Eze, 2018; Fernández et al , 2019). Determinants such as size, leverage, economic profitability, capital intensity, inventory intensity and industrial activity are frequently used in the literature.…”

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

confidence: 99%

“…Determinants such as size, leverage, economic profitability, capital intensity, inventory intensity and industrial activity are frequently used in the literature. These indicators are included in analyses of the impact of a specific regulatory change (Calvé et al , 2005; Richardson and Lanis, 2007; Wu et al , 2007; Noor et al , 2010; Huang et al , 2013).…”

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

confidence: 99%

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Determinants of corporate effective tax rates: evidence from the euro area

Barberá

Merello

Molina

2020

ARLA

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PurposeThe purpose of this paper is to investigate the effect of the determinants of corporate effective tax rates (ETR) of listed companies in euro area.Design/methodology/approachWith a large and recent panel of 2,870 listed companies for the period 2005–2016, the authors use the generalized moments method (GMM) to estimate global models for three groups of countries and specific models for six selected countries: Germany, Spain, France, Italy, Belgium and Greece.FindingsThe results confirm that ETR have different determinants depending on the countries analyzed. There is a significantly positive relationship with leverage and negative with size and financial profitability. However, economic profitability shows a statistically positive effect in the new members, but negative effect on old ones. In the individual analysis, Germany and Spain maintain this negative association with return on assets (ROA), but Belgium and Greece show a positive effect. The effect of the economic cycle shows statistically relevant, negatively in Germany but positively in Belgium and Greece.Originality/valueThis paper makes a novel contribution to the current debate on the need for harmonization of corporate income tax in the European Union (EU). For the first time, the group of countries whose common currency is the euro is considered with a great level of detail. In addition, the impact derived from the enlargement of the euro area and the individual analysis of the main countries is included. The European authorities must take into account the specific differences found in the ETR determinants because it hinders to take measures that limit tax competition.

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Section: Hypothesesmentioning

confidence: 88%

Section: Hypothesesmentioning

confidence: 97%

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

confidence: 99%

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

confidence: 99%

See 2 more Smart Citations

Determinants of corporate effective tax rates: evidence from the euro area

Barberá

Merello

Molina

2020

ARLA

View full text Add to dashboard Cite

show abstract

“…Liu and Chao (2007) use the listed companies' data in China and their empirical results show the relationship between ETRs and SOEs is significant. Later Huang et al (2013) get the same results as Wu et al (2007).…”

Section: Introductionmentioning

confidence: 55%