Study of Effective Corporate Tax Rate and Its Influential Factors: Empirical Evidence from Emerging
- Radu Alin Păunescu
- Dec 18, 2017
- 1 min read
This article examines the driving factors of the effective corporate tax rate (ECTR) for a sample of companies listed on five Eastern European stock exchanges (Romania, Hungary, Poland, Bulgaria, and Slovenia), covering the period 2000–2016. The empirical research covers variables regarding firm characteristics (e.g., profitability, efficiency of assets, indebtedness, liquidity, and solvency), firm-level controls, auditing fees, and the statutory rate.
The estimated panel data models provide support for a positive link between the ECTR and profitability, debt, capital and inventory intensity, firm size, and statutory rate, strengthening the validity of political cost theory. Further, the negative link between market capitalization and assets growth supports the idea of political power theory.
Cited as:
Vintilă G., Gherghina Ş.C., Păunescu R., A., (2018). Study of Effective Corporate Tax Rate and Its Influential Factors: Empirical Evidence from Emerging European Markets, Emerging Markets Finance and Trade (EMFT), Vol.54, Nr.3, 2018, pg. 571-590, ISSN: 1540-496X (Print), ISSN: 1558-0938 (Online), journal indexed on international database: Ovid (EconLit), Personal Alert (E-mail), ProQuest (ABI/INFORM Collection, ABI/INFORM Global (American Business Information), ABI/INFORM Research, Asian & European Business Collection, Business Premium Collection, EconLit, Military Database, PAIS Index (Public Affairs Information Service), Selective, ProQuest 5000, ProQuest 5000 International, ProQuest Central, SciTech Premium Collection, Technology Collection), Thomson Reuters (Current Contents, Social Sciences Citation Index, Web of Science) (Impact Factor 2016: 0.826, 5-Year Impact Factor: 0.951, Article Influence Score 2016: 0.201, Business: 106/121 Q4, Economics: 189/347 Q3, International Relations: 53/86 Q3)
