THE INFLUENCE OF THE CONNECTIONS OF ROMANIAN NON-LISTED FIRMS TO TAX HAVENS ON THEIR PROFITABILITY
Journal Title: CES Working Papers - Year 2016, Vol 8, Issue 4
Abstract
The offshore entities have become one of the most efficient solutions for tax avoidance and are used by taxpayers almost all around the world. This paper investigates the influence of the connections (via subsidiaries or shareholders) of Romanian non-listed firms to tax havens on their profitability and effective tax rate. In this regard, we used a sample of 7,167 Romanian firms (3,370 with connections to tax havens and 3,797 without tax havens connections). For statistical analysis, we used the simple and multiple linear regression methods with dummy variables. Results have shown that the presence of Romanian non-listed firms in tax havens significantly influences their profitability and effective tax rate. The firms with connections to tax havens have a return on equity ratio higher, a return on assets ratio lower, a gross profit margin ratio lower, a total assets turnover ratio higher and an effective tax rate lower than companies without connections to such jurisdictions
Authors and Affiliations
Mihai-Bogdan Afrasinei, Iuliana Eugenia Georgescu, Costel Istrate
Keywords
Related Articles
- EP ID EP284155
- DOI -
- Views 121
- Downloads 0
THE UK ELECTRICITY MARKET EVOLUTION DURING THE LIBERALIZATION PROCESS
This paper offers an insight on the liberalization process that took place in the United Kingdom starting with 1990 until now. The electricity market in the United Kingdom made incredible progress in the road to reaching...
GAPS IN ECONOMIC DEVELOPMENT INTER AND INTRA EUROPEAN UNION STATES
Economic development is a subject that generates much controversy, mainly because of the widening gaps between poor and rich nations. In the present paper, we intend to identify and explain the differences that exist bot...
THE GEOPOLITICS OF HELPLESSNESS
The events in Ukraine are in the thick of actuality, at the crossroads of East and West. From a buffer zone it has become an acute space of exhibition of Russia’s interests, on one side, and of the European Union’s, o...
THE MOBILITY OF THE PROCESSES OF REGIONAL INTRA-INDUSTRY SPECIALIZATION IN ROMANIA
In analyzing the mobility of the intra-industry specialization processes in Romania in the period of time 2000-2010 on regional level, we started from the assessment of the of the structural convergence of the specializa...
CHALLENGES AND DILLEMAS WITHIN THE RELATIONS BETWEEN RUSSIA AND THE EUROPEAN UNION
Every EU enlargement signified a step towards Central and Eastern Europe, therefore, the 2004 „big bang enlargement”, followed by the one in 2007, modified the geopolitical context within the „old continent” and also inc...