Abstract
The paper investigates the factors that cause effective corporate tax rates (ETRs) to diverge from the statutory rate of corporation tax (SRCT). Based on accounting identities, a model of ETRs is specified that allows quantification of the effects of observed firm heterogeniety on how its ETRs may differ fromt he SRCT. Results suggest that significant factors are interest payments, R&D expenditure, foreign ownership, stock-market listing and the number of subsidiaries. The results also suggest that unobserved firm heterogeneity plays a significant role.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
