|
Taxes and firm size: Political cost or political power?
Belz, Thomas
;
Hagen, Dominik von
;
Steffens, Christian
|
DOI:
|
https://doi.org/10.2139/ssrn.2697468
|
|
URL:
|
https://papers.ssrn.com/sol3/papers.cfm?abstract_i...
|
|
Document Type:
|
Working paper
|
|
Year of publication:
|
2017
|
|
The title of a journal, publication series:
|
SSRN Working Paper Series
|
|
Place of publication:
|
Rochester, NY
|
|
Publishing house:
|
SSRN
|
|
Publication language:
|
English
|
|
Institution:
|
Business School > ABWL u. Betriebswirtschaftliche Steuerlehre (Schreiber 1999-2019)
|
|
Subject:
|
330 Economics
|
|
Keywords (English):
|
Effective tax rate , Firm size , Political cost theory , Political power theory , Meta-regression analysis
|
|
Abstract:
|
Using a meta-regression analysis, we quantitatively review the empirical literature on the relation between effective tax rate (ETR) and firm size. Accounting literature offers two competing theories on this relation: The political cost theory, suggesting a positive size-ETR relation, and the political power theory, suggesting a negative size-ETR relation. Using a unique data set of 49 studies that do not show a clear tendency towards either of the two theories, we contribute to the discussion on the size-ETR relation in three ways: First, applying meta-regression analysis on a US meta–data set, we provide evidence supporting the political cost theory. Second, our analysis reveals factors that are possible sources of variation and bias in previous empirical studies; these findings can improve future empirical and analytical models. Third, in further analyses on a cross-country meta–data set, we find additional explanations for the two competing theories. To our knowledge, these explanations have not yet been investigated in our research context. We find that tax planning aspects, such as the introduction of the check-the-box rules in the US, potentially affect the size-ETR relation. In addition, we find supporting evidence that Hofstede’s cultural dimensions theory and a transparency index explain variation in the size-ETR relation.
|
|
Additional information:
|
Online-Ressource
|
 | Dieser Eintrag ist Teil der Universitätsbibliographie. |
 Search Authors in
You have found an error? Please let us know about your desired correction here: E-Mail
Actions (login required)
 |
Show item |
|
|
