Econometric Accounting of the Australian Corporate Tax Rates: a Firm Panel Example
نویسندگان
چکیده
The paper presents an econometric accounting of the e¤ective corporate tax rate in Australia for the years 1993 to 1996. The estimation is a panel of Australian rms that uses a specially gathered nancial data base. Using xed and random e¤ects, the model speci es that the statutory tax rate is estimated as the constant term of the model. An ability to nd an estimated statutory tax rate that is close to the actual rate suggests a certain con dence in the estimated e¤ects of the others factors a¤ecting the e¤ective tax rate. The results show importance for interest expenses, depreciation allowances, debt/asset structures, and the foreign ownership of rms. There is support for an Australian role as a preferential tax location. Keywords: E¤ective tax rate, accounting model, panel data, random and xed e¤ects JEL: H25, E62
منابع مشابه
The Impact of Corporate income Tax and Firm Size on Fixed Investment
This paper is an attempt to analyze the impact of income taxes and market capitalization on fixed investment (investment in tangible assets) by manufacturing companies listed on KSE. This paper basically examines that how corporate income taxes affect fixed investment by reducing cash flow available for a firm to invest and how the firm size in the lights of market capitalization affects fixed ...
متن کاملThe Presence of Women on the Board and Tax Avoidance: Evidence from Tehran Stock Exchange
Today, women are considered as one of the main pillars of corporate decision making, which can contribute to the development and promotion of corporate initiatives and projects within the framework of the development of trust and confidence of shareholders and society. The purpose of this research is to investigate the association between the presence of women on boards of directors and tax avo...
متن کاملThe Impact of Institutional Ownership on the Relationship between Tax and Capital Structure
One of the reasons that companies avoid paying their taxes is that they choose to use debts for their funding. In other words, tax saving, an activity of companies to avoid taxpaying, can be used to finance corporate projects. Furthermore, since institutional owners are more inclined to supervise, they may shrink managerial behaviors to avoid taxpaying. In this study, institutional owners’ supe...
متن کاملThe Impact of Effective Corporate Governance on the Relationship between Tax Gap and Future Profit Changes in Iranian Economy
The Iranian economy in recent years is due to the development of economic sanctions, a sharp decline in the price of oil and the deficit resulting from revenue - dependent on oil revenues and the trend towards tax revenues. While comparing the volume of the Iranian economy with the amount of tax income indicates the existence of a relatively significant tax gap. The tax gap is the difference be...
متن کاملTax avoidance and Firms Cost of Equity: The Moderating Role of outside Monitoring
Literature in tax avoidance indicates that the proceeds of tax avoidance can be invested on production affairs, which in turn enhance the future expected cash flow, thereby reducing the cost of equity. Based on this reasoning, the present study aims to examine whether tax avoidance is associated with the cost of equity with emphasis on the moderating effect of outside monitoring. To calculate t...
متن کامل