Corporation effective tax rates and company size: evidence from Germany
Journal Title: Economic Research-Ekonomska Istraživanja - Year 2018, Vol 31, Issue 1
Abstract
We investigate the relationship between the effective tax rate (E.T.R.) and company size in Germany to test tax planning–political power versus political cost theories. In contrast to most studies in this field, which use linear approximations, this paper uses a quantile regression approach. We use data from Compustat, corresponding to non-financial listed companies during 1992–2009. The results indicate a nonlinear relation, with a positive sign for the first quantiles and a negative one in the last part of the distribution. Additionally, leverage, inventory intensity and return on assets are found to be significant determinants of the E.T.R.
Authors and Affiliations
Francisco J. Delgado, Elena Fernández-Rodríguez, Antonio Martínez-Arias
Keywords
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- EP ID EP545118
- DOI 10.1080/1331677X.2018.1543056
- Views 42
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