Year: 2018
Type: article
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.
Institution: Universidad de Oviedo
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $944
OpenAlex ID: W2913370539