Original scientific paper

https://doi.org/10.1080/1331677X.2018.1543056

Corporation effective tax rates and company size: evidence from Germany

Francisco J. Delgado orcid.org/0000-0002-5086-7011 ; Department of Economics, University of Oviedo, Oviedo, Spain
Elena Fernandez-Rodrıguez ; Department of Accounting, University of Oviedo, Oviedo, Spain
Antonio Martınez-Arias ; Department of Economics, University of Oviedo, Oviedo, Spain

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.

Keywords

Corporate income tax; effective tax rate; company size; quantile regression; Germany

Hrčak ID:

217025

URI

https://hrcak.srce.hr/217025

Publication date:

3.12.2018.

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