Determinants of the effective tax rate Student: Mircea Bogdan Coordinator: Vintila Georgeta

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1 Determinants of the effective tax rate Student: Mircea Bogdan Coordinator: Vintila Georgeta Abstract The fiscal burden of a company is the subject of many studies in the economic field. The concept concerning this paper is the effective tax rate (also noted as ETR) which, in the opinion of many economics, gives a better imagine of a company s fiscal burden than the statutory tax rate. The purpose of this paper is to give an imagine of the national and international opinions for the ETR regarding the method of calculation and the econometrical models that reflects its factors. In this paper I presented the most important national and international articles whose base topic was the effective tax rate and its determinants such as company s characteristics (like ROE, ROA, leverage, size) and macroeconomics factors like inflation rate or others. The study case was based on the Romanian companies listed to the Bucharest Stock Exchange, for the period , for 12 activity sectors. The results showed some overall influence at the level of the characteristics of companies and for the macroeconomics factors, but the sectorial analyses are quite different, the differences being at the level of the limitations of the study. Keywords: effective tax rate, determinants, fiscal influence, fiscal policy, econometrics, Romanian companies Introduction Taxes have existed since ancient times and it is believed to have occurred in the evolution of human society in the first state formations, being determined by the need for maintenance of those materials exercising public power, performing management tasks. Taxes have been designed differently, influenced especially by social and economic development and public spending supported by each state. Income tax is the "cost of doing business." The effective income tax rate may affect corporate saving rate and cost of capital and in turn the growth rate of a country. To the extent that countries impose fiscal burdens on taxation, tax can contribute to inflows and outflows of capital from a country, affecting the cost of doing business in that country. Effective tax rate includes all taxes and fiscal obligations incurred by a taxpayer. The tax burden is influenced by sector of activity, the existence of deductibles and fiscal incentives from the state. Determinants of effective tax rate are the features highlighted by company size, market share, the performance of it, and macro elements that affect the overall economy, sectorial influences being of course different. Literature review Literature and studies presented below support a stronger influence of the effective tax rate to the statutory regarding investment and financing decisions. Impact of effective tax rate and the determinants are subject to numerous case studies on international and national level that focus on microeconomic sphere. The calculation and 1

2 estimation vary from author to author, and distribution channels impact financial results. Thus, in order to form an idea of the concept of effective rate of taxation, I presented various national and international articles with a significant contribution to the literature. S. Gupta, K. Newbery (1997) studies the determinants of variability effective tax tax at company level in the period before and after the tax reform of Number of firms taken in the analysis was 823 during and 915 during ). Tax reform in the U.S., in 1986, simplified tax code and removed some deductions (income tax rate was reduced from 46% to 34%, and personal income tax from 50% to 28%). This reform was the most significant change in the tax structure of America in the last 50 years. This study shows that the effective tax rate is not associated with firm size when the relationship is examined over time for companies with long histories. Despite this, results show that the effective tax rate is negatively correlated with capital structure, elements of assets and positively correlated with firm performance (ROA), these correlations continued after the 1986 tax reform. A study published by Kim A.K. and Limpaphayom P. (1998) applies the hypothesis of positive relationship between effective tax rate and firm size in the context of emerging economies: Hong Kong, Korea, Malaysia, Taiwan and Thailand. The sample was composed of 372 companies from Hong Kong, 601 in Korea, 361 in Malaysia, 251 in Taiwan and 246 in Thailand. Contrary to U.S. studies, the results obtained by the authors show that there is a negative relationship between effective tax rate and firm size in emerging economies. The independent variables were represented: total assets, leverage ratio, market value and profitability of the firm defined as the income to sales (profit margin). In the analysis it is observed that for the margin of profit, the correlation coefficients are positive and statistically significant (except Malaysia). The effective tax rate is negatively correlated with firm size, although this contradicts previous studies, leverage and market value have low significance in relation to the tax rate. B. Janssen and Buijink W. (2000) study the existence of an association between changes in effective average tax rate (ETR) and firm characteristics such as size, asset structure, existence with foreign operations, performance, leverage, whether the fact that a company stock is listed or not, or if the company is public. The database included financial information for the period , comprising 879 firms and 4395 observations. The study was a model with panel data, regression used is defined as: ETR t = α t + β 1 FSIZE t + β 2 CAPINT t + β 3 INVINT t + β 4 FOREIGN t + β 5 ROA t + ß 6 LEVERAGE + β 7 LISTED t + ß 8 PUBLIC + ε t. In conclusion, through a cross-sectional study panel, including financial data for Dutch companies, it was attempted to determine the factors that influence the effective tax rate, using variables that incorporates characteristics of firms and the variables control. Study results confirmed that the Dutch corporate tax system provides significant amounts of tax deductions to companies, yet it is fair and neutral, the average effective tax rate is not related to company characteristics. 2

3 Janssen B. (2005) investigates the actual size of the Dutch tax incentives to companies using data from the financial statements of 1592 companies in the period The paper tries to find solutions to two problems, namely the impact of tax incentives provided by the Dutch government on corporate tax burdens, and the importance of the impact of certain types of companies. The author uses the effective tax rate in the analysis, as the ratio of tax and accounting profit before tax as the dependent variable and independent variables firm size, capital intensity, the ratio of foreign sales in total sales, ROA and leverage. Correlations between effective tax rate and the explanatory variables are mostly insignificant, and when significant, are small (correlation with ROA is significant, but low, as well as capital intensity). The results indicate that the Dutch tax system provides few tax incentives for companies, the differences between statutory rates and effective tax rates are relatively low. Also R. Lanis and Richardson G (2007) study the determinants of effective tax rate variability at micro level, concerning on tax reform in Australia. The database is the panel that contains financial information for the period for 92 companies. Year 2000 is the year of tax reform which is considered transitional year as research studies in the field and has been removed from the database. The econometric model presented in this paper is: After running the two regressions based on the method of calculation of the effective tax rate was achieved a degree of determination of 13% for ETR model (1) and 19% for ETR model (2), both models are validated statistically. In both econometric models, there was a significant negative correlation with SIZE, LEV, CINT, RDINT, TREF, TREF * INVINT, TREF * ROA and a significant positive correlation with INVINT and TREF * LEV. The study attempted to observe the variability of factors influencing effective tax rate, an important factor is firm size, which is a negative correlation. Also, negative association has been observed between ETR and leverage, research and development expenditures intensity. After tax reform in Australia, it was observed that the ETR continues to be influenced by firm size, capital and assets structure. K. Crabbe et. all (2010) study the impact of costs related to the audit and tax advice on the effective tax rate for large Belgian companies. More specifically, they want to analyze the relationship mentioned above since it was implemented the corporate governance code in The database is composed of Belgian firms' financial data for the period Study results indicate that tax advisory expenses does not affect ETR, instead it is influenced by hiring a BIG4 in order to reduce it. Since the corporate governance code was implemented, hiring auditors affects ETR rate lower than before its implementation. Influence auditors expenditure on ETR is approximately 1%. The econometric model is as follows: 3

4 The final conclusions are: companies that have a high intensity of capital, leverage and high costs of research and development, also have a lower effective rate of taxation; Tax advice variable is statistically insignificant in every regression model tried by the authors. This shows that additional payments on tax advice do not reduce the effective tax rate. In contrast, hiring Big4 auditor leads to a reduction in the effective tax rate by approximately 1%. Sebastian Lazar (2010) studies for non-financial companies listed on the Bucharest Stock Exchange in the period the correlation between actual and statutory taxation rate. The database was developed using the financial statements of companies listed on the Bucharest Stock Exchange. The author chose to use the consolidated data to capture specific influences and determined the tax code contained in Romania. A problem in case studies using data from Romania is the unavailability and unreliability of financial information, Mr. Lazar calling Infin database covering over 60 of the non-financial firms listed on the stock exchange. The case study begins with 2000 being when the Romanian firms have begun to report their financial statements in accordance with International Standards of Accounting and Regulatory Accounting Directives. Also, 2000 was the year of tax reform, the state's share of income tax fell from 38% to 25%. The effective tax rate is calculated using two major approaches: one based on the accounting information and the other based on tax information. In this case, Romania, given the tax and accounting, the author adopted the method of accounting information: ETR = CIT / PI * 100, where CIT is tax, while PI is gross profit. In the study, the author revealed the following: The effective tax rate was below the legal level, with the exception of 2009, the companies benefiting from tax deductions. In 2005, when the statutory rate fell from 25% to 16%, there was a significant decrease in the effective tax rate to the pre-2005 as the tax base has increased. The difference between actual and law rate may be correlated with certain financial ratios (ROA, ROE, and NPM), showing a negative correlation of between ROA and the gap between the rates at a significance level of 5%. The coefficient of determination is 40% After an analysis of the sector, to the constant in the trade sector benefiting from the best tax regime with an effective tax rate of approximately 15%, while the energy sector is the most heavily taxed, with the effective tax rate to about 31.4%. Lee N. and C. Swenson (2012) investigate the common factors of influencing the tax base effective tax enforcement, through an analysis of international tax regimes. In this paper, it specifically examines the determinants of effective tax rate to 86 advertising companies operating in the Member States of the European Union, being selected companies listed on the stock exchange. The period of analysis is after, designating 2004 when companies were forced standardized reporting of financial statements in accordance with IFRS. The database derived from the Compustat Global requiring adjustments to the indicators that were expressed in the currency of the country of origin of the company, they are converted into indices in relation to total assets or turnover as appropriate. 4

5 The effective tax rate is the ratio of current income tax expense and net income before tax, both the method and the tax accounting. The econometric model took into consideration is defined as: Conclusions are: companies in countries with high statutory rate have a higher effective rate of tax, the effective tax rate variation was explained 36% by 1% change in the statutory tax rate STR; variables LEV, PPE, INV, Rdinv are statistically significant, reducing the effective rate of taxation; Regression model is statistically significant on 1% level of relevancy. Vintilă G. et al (2012b), in a globalized economy and the lack of stability of the input, it generates a public issue of corporate involvement in social responsibility actions. The purpose of this study is to investigate empirically whether how a corporation deals with corporate social responsibility influence the level of aggressiveness of tax, on the example of Romanian companies listed on Bucharest Stock Exchange. Using financial information for the year 2010 for 40 Romanian corporations listed, it is examined the association between corporate social responsibility and tax aggressiveness. Hypothesis testing is that the companies who undertake more social responsibility activities are less aggressive in terms of fiscal, while socially irresponsible firms have a higher tax aggressiveness. To investigate the correlation CSR - tax aggressiveness, as a measure of tax aggressiveness is used effective tax rates and as a level of employment in responsibility activities it is used the corporate social responsibility index determined on data from annual reports. The effective tax rate was determined as the ratio of corporate tax and the gross result of company. The model is: Conclusions are: based on probabilities, two (for a significance level of 5%) and three (for a significance level of 10%) of the seven variables are statistically significant (TROUBLE, INVINT, respectively GROWTH), while the other variables, with very high probability, are not statistically significant; it is noted that the empirical results of the regression analysis for Romanian companies does not outstand the correlation between tax aggressiveness and corporate social responsibility, critical probability associated to the independent variable is very high, the coefficient is regarded as having, statistically speaking the value zero. 5

6 Database In this study, I selected a sample of 62 companies listed on the Bucharest Stock Exchange for the period Selection criteria for Romanian companies were consistent with the methodology studies, excluding from the sample all firms belonging to the financial sector and financial intermediation due to specific regulations. The initial data was: Turnover; Long-term liabilities; Net Profit; Gross profit; Inventory; Total revenues; Total expenses; Fixed assets; Current assets; Number of employees; Cash; Equity; Capital. For this study I calculated the followings indicators: - ETR calculated in 2 methods: the first as ratio between Corporate Income Tax and Gross Profit and the second as ratio between Corporate Income Tax and Turnover - INVINT: inventory intensity represents the amount of inventory related to total assets. I chose this indicator as a determining factor for the size of the effective tax rate, according to specialists in the related articles. - CINT: fixed asset intensity calculated as the ratio between fixed assets and total assets. I chose this indicator to enter the study, since according to the literature is an important feature in addressing factors influencing the ETR. - ROA - ROE - Leverage - Borrowing rate as the ratio between the difference of total assets and equity and total assets - Corruption Perception Index - Inflation Rate - Fiscal year reform dummy variable named Year - Size of the company as the natural logarithm of assets. 6

7 Data analysis Descriptive statistics The descriptive statistics is presented below : IPC Inflatia ROA ROE LEVIER INVINT CINT SALARIATI RATA ÎND. SIZE Mean Median Maximum Minimum Std. Dev Skewness Kurtosis Jarque-Bera Probability Sum Sum Sq. Dev E Observations Cross sections We can observe the maximum, minimum and medium values for our variables. Regarding the normal distribution of the series, according to Jarque-Bera test, our series are not normal distributed. Also, we can observe that for our data, there weren t big deviation of the values from their mean. Correlation matrix CINT INFLATIA INVINT IPC LEVIER RATA ÎND. ROA ROE SALARIAȚI SIZE CINT INFLATIA INVINT IPC LEVIER RATA ÎND ROA ROE SALARIAȚI SIZE As can be seen, the coefficients of different variables are small, with few exceptions. Inflation rate is negatively correlated strongly with the Corruption Perception Index and positively correlated with ROA. ROA is negatively correlated strongly with the leverage ratio; also there is a strong correlation between leverage and ROE and between INVINT and CINT. Size of the company is positively correlated with the number of employees, the leverage ratio and negatively correlated to the inflation rate. 7

8 Evolution of the effective tax rates ETR1 and ETR2 in Romania In Romania, the statutory tax rate was 38% in 2009, 25% in and 16% from 2005 to the present. At the aggregate level of the analyzed companies, the highest values of average effective tax rates were recorded in 1999, the average effective tax rate ETR1 in value of 37.15%, while ETR2 was worth 3.33 %. Also, during the period , ETR1 was lower than statutory, followed in to record values exceeding the statutory rate, returning to trend after 2007 initially. Regarding effective tax rate ETR2, we see recorded values below the statutory rate for the full analysis. In table 1 in Appendix, we can both aggregate and sectorial evolution of ETRs. The analysis by sector of activity during the period under review, we conclude that the sectors most affected by the tax are: transport and storage, construction, while the least affected sectors are tourism, energy. Also the economic crisis has affected all sectors of Romania, the impact being found in poor financial situations resulting high effective tax rates. 8

9 Econometrical analysis The base model is as follows : The results from Eviews are showed in the following table: Dependent Variable: ETR1? Method: Pooled Least Squares Total pool (balanced) observations: 806 Total pool (unbalanced) observations: 803 Variable Coefficient Std. Error t-statistic Prob. Variable Coefficient Std. Error t-statistic Prob. C C IPC IPC INFL INFL YEAR YEAR ROA? ROA? ROE? ROE? LEVIER? LEVIER? INVINT? INVINT? CINT? CINT? SALARIATI? -6.37E E SALARIATI? -5.36E E RATA_IND? RATA_IND? 3.81E E R-squared Mean dependent var R-squared Mean dependent var Adjusted R-squared S.D. dependent var Adjusted R-squared S.D. dependent var S.E. of regression Akaike info criterion S.E. of regression Akaike info criterion Sum squared resid Schwarz criterion Sum squared resid Schwarz criterion Log likelihood Hannan-Quinn criter Log likelihood Hannan-Quinn criter F-statistic Durbin-Watson stat F-statistic Durbin-Watson stat Prob(F-statistic) 0 Prob(F-statistic) 0 Dependent Variable: ETR2? Method: Pooled Least Squares Cross-sections included: 62 Cross-sections included: 62 Regarding the first regression model, we can observe a positive and significant correlation between ETR1 and inflation rate, leverage, ROE (for a significance level of 10%), invetory intensity. The other variables are not significant econometric as probabilities for the test Student are greater than the level of significance taking into account (5%). A negative correlation is observed between ETR1 and borrowing rate. The whole model is valid for a test Fisher probability is greater than 5% and the degree of determination is 20.77% meaning that the effective tax rate variation ETR1 is explained in the proportion of 20.77% by the variables included the model; the remaining variation is explained by factors not included in the regression model. The second regression model, with the dependent variable ETR2, has a better insight into the influence factors. Variable coefficients IPC, inflation rate, ROE, ROA, leverage (for a significance level of 10%) and inventory intensity are significant and have a positive correlation with the dependent variable. The Year dummy variable has a negative and significant correlation with the effective tax rate, meaning that when tax reform has been caught flat tax decrease in the economic, effective tax rate decreased. The number of employees has a significant impact on the dependent variable showing a significant negative correlation, an increase in the number of employees involves a decrease in the effective tax rate. 9

10 The whole regression model is valid with probability zero Fisher test and the variables included in the analysis explaines 55.44% of variation of the dependent variable. Using logarithmical data and introducing a new variabile (SIZE), the model becomes: The results are shown in the following table: Dependent Variable: ETRA? Dependent Variable: ETRB? Method: Pooled Least Squares Method: Pooled Least Squares Sample: Sample: Included observations: 13 Included observations: 13 Cross-sections included: 62 Cross-sections included: 62 Variable Coefficient Std. Error t-statistic Prob. Variable Coefficient Std. Error t-statistic Prob. C C IPC IPC INFL INFL YEAR YEAR ROAL? ROAL? ROEL? ROEL? LEVERAGE? LEVERAGE? INVINTL? INVINTL? CINTL? CINTL? RIND? RIND? LOG_SALARIATI? LOG_SALARIATI? SIZE? SIZE? R-squared Mean dependent var R-squared Mean dependent var Adjusted R-squared S.D. dependent var Adjusted R-squared S.D. dependent var S.E. of regression Akaike info criterion S.E. of regression Akaike info criterion Sum squared resid Schwarz criterion Sum squared resid Schwarz criterion Log likelihood Hannan-Quinn criter Log likelihood Hannan-Quinn criter F-statistic Durbin-Watson stat F-statistic Durbin-Watson stat Prob(F-statistic) 0 Prob(F-statistic) 0 Alternative regression model to the basic one, with the dependent variable the effective tax rate Etra, statistically speaking, is valid; Fisher test probability is less than the significance level considered. The determination is 60.22% which suggests that the variation of ETRa is explained for 60.22% by the variables included in the model, the remaining variation is explained by other factors omitted. Variable coefficients IPC, inflation rate, YEAR, ROAL, ROEL, CINTL, RIND, LOG_SALARIATI and SIZE are significant in statistical terms. A positive correlation was observed between the dependent variable and INFL, ROAL, SIZE and RIND and negative correlation was found between the effective tax rate and IPC, YEAR, ROEL, CINTL and LOG_SALARIATI. Serial autocorrelation hypothesis on the data, the DW statistics for the two models ETRb and Etra and are compared with tabulated DW for the 5% significance level, a sample of 667 observations and 11 coefficients. The table du is and DL= , DW for regression 10

11 Etra has the value 1.30, and for ETRb is 1.28, both being within the range of values between 0 and dl, signifying the presence of serial autocorrelation of the residues in both regression models. Conclusions In this paper I studied the determinants of effective tax rate. The period of analysis was ; the database consisted of financial statements of companies listed on the Bucharest Stock Exchange, companies which are classified into 11 sectors. Aim of the study was to determine the effective tax rate, presenting professional articles on national and international. Case studies focused on the issue of ETR concept approach include the period 1997 to 2012, and could easily see the evolution of thought in the literature on calculation of the effective tax rate and its determinants. In the period under review, the following conclusions can be derived regarding the evolution of effective tax rate: At the aggregate level of the analyzed companies, the highest values of average effective tax rates were recorded in 1999, the average effective tax rate ETR1 in value of 37.15%, while ETR2 was worth 3, 33%. Also, during the period , ETR1 was lower than statutory rate, followed in to record values exceeding the statutory rate, returning to initial trend after Regarding effective tax rate ETR2, we see recorded values below the statutory rate for the full analysis. The analysis of the sector in the period under review, we conclude that the sectors most affected by the tax are: transport and storage, construction, while the least affected sectors are tourism, energy. Also, the economic crisis has affected all sectors of Romania, the impact being in the poor financial statements resulting in a high effective tax rates. For the econometric analysis, I proposed two types of regression models with dependent variable as the effective tax rate calculated in the two ways mentioned in the above lines. The first version of the model involving econometric analysis using data imported from Excel directly, without applying the natural logarithm operations. As independent variables I chose as significant macroeconomic variables (Corruption Perception Index, rate of inflation, and the inclusion of a dummy variable to capture the impact of the type of tax reform in Romania) and company-specific variables (ROA, ROE, leverage, number of employees, the rate of indebtedness, inventory and capital intensity). Including these variables aimed to determine the factors influencing, the choice being made in the other models presented in the literature. This did not include influences conclusive unless ETR2 model. In further study, I chose the realization of two models, this time I created a new series of variables applying the natural logarithm operator. Also, in the model I included a new variable to measure company size, SIZE, defined as the natural logarithm of turnover. There weren t large differences between the new models ETRb and Etra, influences of the variables having the same meaning in both cases. Obtained differences can be explained by different methods of calculation of the dependent variable. Thus, I can deduce: The coefficients of IPC, INFL, YEAR, ROAL, ROEL, CINTL, RIND, LOG_SALARIATI and SIZE are significant in statistical terms; Positive correlation was observed between the dependent variable and INFL, ROAL, SIZE and RIND; Negative correlation was found between the effective tax rate and IPC, YEAR, ROEL, CINT and LOG_SALARIATI. 11

12 The aim of this analysis is determinate the factors influencing the effective tax burden of the economic agent. Based on the results, we can provide valuable information in order to improve fiscal and financial management of a company. Taking into account the conclusions, the company, in order to reduce the effective rate of tax, may adjust its specific indicators by increasing or reducing. Also, depending on economic conditions existing at a given time, and the characteristics of the industry and the interests of the company, it can approach a mixed policy by reducing the effective tax rate while maintaining its funding and financial policy, maximizing their performance and tracking the goals imposed by financial management. The analysis in this paper has certain limitations on the availability of financial data for Romania. Another limitation of the study is the proposed estimation method (OLS - the method of least squares) and non-availability to use of other methods due of computer program Eviews. Method of data approach in EViews is data-pool type, which have characteristics and hence statistical tests are lower compared to a simple regression. Also a factor is the failure of all OLS assumptions. 12

13 References 1. Boudewijn Janssen, 2005, Corporate effective tax rates in the NETHERLANDS, Netherlands Economic Review, Nr 1; 2. Boudewijn Janssen, Willem Buijink, 2000, Determinants of the Variability of Corporate Effective Tax Rates (ETRs): Evidence for the Netherlands, MARC Working Paper MARC-WP/3/ ; 3. Codirlaşu, A., 2007, Econometrie aplicatăutilizând EViews 5.1, note de curs, Programul de Master Specializat Managementul Sistemelor Bancare, ASE Bucureşti; 4. Crabbé Karen, Lessius, K.U.Leuven, 2010, The impact of the auditor and tax advice on the effective tax rate,katholieke Universiteit Leuven, Belgia; 5. Gupta Sanjay, Newbery Kaye, 1997, Determinants of the variability in corporate effective tax rates: Evidence from longitudinal data, Journal of Accounting and Public Policy; 6. Kim Kenneth A., Limpaphayom Piman, 1998, Taxes and firm size in pacific-basin emerging economies, Journal of International Accounting, Auditing & Taxation, 7(1):47-68; 7. Lee Namryoung, Swenson Charles, 2012, Are Multinational Corporate Tax Rules as Important as Tax Rates?, The International Journal of Accounting 47, p ; 8. Lazăr Sebastian, 2010a, EFFECTIVE CORPORATE INCOME TAX RATE IN ROMANIA: A MICROBACKWARD LOOKING APPROACH, University Al. I. Cuza of Iasi, Romania; 9. Lanis Roman, Richardson Grant, 2007, Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia, Journal of Accounting and Public Policy 26 p ; 10. Necula Ciprian, 2012, Econometrie nivel de complexitate, suport de curs; 11. Necula Ciprian, 2010, Bazele econometriei, note de curs, Master DOFIN 12. Startz Richard, 2013, EViews Illustrated for Version 8, University of California, Santa Barbara; 13. Spircu Liliana, 2012, Econometrie aplicată în finanțe, note de curs, Academia de Studii Economice București, Facultatea de Finante, Asigurări, Bănci și Burse de Valori București, Master Finanțe Corporative; 14. Radu Stroe, Dan Armeanu, 2004, Finante, Editura ASE, Biblioteca digitala ASE; 15. Ristea Mihai, Dumitru Corina-Graziella, 2005, Contabilitate financiara, ed. Universitara, Biblioteca Digitala ASE; 16. Vintilă Georgeta, 2012a, Mangementul fiscal al întreprinderii, Academia de Studii Economice : Facultatea de Finanțe, Asigurări, Bănci și Burse de Valori : Maste Management financiar și Bursier, Bucureşti; 17. Vintilă Georgeta, Armeanu Ștefan Daniel, Filipescu Maria-Oana, Moscalu Maricica, Lazăr Paula, 2012b, Studiu privind corelaţia politică fiscală responsabilitate socială corporativă : Economie teoretică şi aplicată, Volumul XIX, No. 4(569), p. 3-14; 13

14 18. International Accounting Standard 12 : Income Taxes;

15 Appendix Tabel 1 : Evolution of EATR1 și EATR2 in Romania Anul Sector de activitate EATR1 EATR2 Cota de impozit legală 1999 Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism

16 Anul Sector de activitate EATR1 EATR2 Cota de impozit legală 2002 Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism

17 Anul Sector de activitate EATR1 EATR2 Cota de impozit legală 2005 Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism

18 Anul Sector de activitate EATR1 EATR2 Cota de impozit legală 2008 Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism

19 Anul Sector de activitate EATR1 EATR2 Cota de impozit legală 2011 Total Comert Constructii Farmaceutic Industrie prelucrătoare Mase plastice Masini și utilaje Metalurgie Produse alimentare Produse chimice Resurse energetice Transport și depozitare Turism

20 Tabel 2 : Basic model ETR1 Dependent Variable: ETR1? Method: Pooled Least Squares Date: 06/01/13 Time: 19:31 Sample: Included observations: 13 Cross-sections included: 62 Total pool (balanced) observations: 806 Variable Coefficient Std. Error t-statistic Prob. C IPC INFL YEAR ROA? ROE? LEVIER? INVINT? CINT? SALARIATI? -6.37E E RATA_IND? Fixed Effects (Cross) _ARS--C _ALR--C _ALT--C _ALU--C _AMO--C _ATB--C _ARM--C _ARTE--C _BRM--C _BIO--C _SPCU--C _CAOR--C _CBC--C _BCM--C _CEON--C _CMCM--C _CMF--C _CMP--C _COMI--C _CNTE--C _CGC--C _DAFR--C _ELJ--C _ELGS--C _ECT--C _ELMA--C _EPT--C _ENP--C _RMAH--C _MECF--C _COS--C _MEF--C _MJM--C

21 _OIL--C _OLT--C _PEI--C _SNP--C _PREH--C _PPL--C _RTRA--C _ROCE--C _RRC--C _PTR--C _RPH--C _SNO--C _COFI--C _STZ--C _SRT--C _SOCP--C _STIB--C _TRP--C _MPN--C _ART--C _COTR--C _TBM--C _TUFE--C _UAM--C _UZT--C _APC--C _VESY--C _VNC--C _SCD--C Cross-section fixed (dummy variables) Effects Specification R-squared Mean dependent var Adjusted R-squared S.D. dependent var S.E. of regression Akaike info criterion Sum squared resid Schwarz criterion Log likelihood Hannan-Quinn criter F-statistic Durbin-Watson stat Prob(F-statistic)

22 Tabelul 3 : Basic model ETR2 Dependent Variable: ETR2? Method: Pooled Least Squares Date: 06/01/13 Time: 19:44 Sample: Included observations: 13 Cross-sections included: 62 Total pool (unbalanced) observations: 803 Variable Coefficient Std. Error t-statistic Prob. C IPC INFL YEAR ROA? ROE? LEVIER? INVINT? CINT? SALARIATI? -5.36E E RATA_IND? 3.81E E Fixed Effects (Cross) _ARS--C _ALR--C _ALT--C _ALU--C _AMO--C _ATB--C 7.69E-05 _ARM--C _ARTE--C _BRM--C _BIO--C _SPCU--C _CAOR--C _CBC--C _BCM--C _CEON--C _CMCM--C _CMF--C _CMP--C _COMI--C _CNTE--C _CGC--C _DAFR--C _ELJ--C _ELGS--C _ECT--C _ELMA--C _EPT--C _ENP--C _RMAH--C _MECF--C _COS--C _MEF--C _MJM--C

23 _OIL--C _OLT--C _PEI--C _SNP--C _PREH--C _PPL--C _RTRA--C _ROCE--C _RRC--C _PTR--C _RPH--C _SNO--C _COFI--C _STZ--C _SRT--C _SOCP--C _STIB--C _TRP--C _MPN--C _ART--C _COTR--C _TBM--C _TUFE--C _UAM--C _UZT--C _APC--C _VESY--C _VNC--C _SCD--C Cross-section fixed (dummy variables) Effects Specification R-squared Mean dependent var Adjusted R-squared S.D. dependent var S.E. of regression Akaike info criterion Sum squared resid Schwarz criterion Log likelihood Hannan-Quinn criter F-statistic Durbin-Watson stat Prob(F-statistic)

24 Tabel 4 : Redundant Fixed Effects Tests, basic model ETR1 Redundant Fixed Effects Tests Pool: POOL01 Test cross-section fixed effects Effects Test Statistic d.f. Prob. Cross-section F (61,734) Cross-section Chi-square Cross-section fixed effects test equation: Dependent Variable: ETR1? Method: Panel Least Squares Date: 06/01/13 Time: 20:02 Sample: Included observations: 13 Cross-sections included: 62 Total pool (balanced) observations: 806 Variable Coefficient Std. Error t-statistic Prob. C IPC INFL YEAR ROA? ROE? LEVIER? INVINT? CINT? SALARIATI? 8.34E E RATA_IND? R-squared Mean dependent var Adjusted R-squared S.D. dependent var S.E. of regression Akaike info criterion Sum squared resid Schwarz criterion Log likelihood Hannan-Quinn criter F-statistic Durbin-Watson stat Prob(F-statistic)

25 Tabel 5 : Redundant Fixed Effects Tests, basic model ETR2 Redundant Fixed Effects Tests Pool: POOL01 Test cross-section fixed effects Effects Test Statistic d.f. Prob. Cross-section F (61,731) Cross-section Chi-square Cross-section fixed effects test equation: Dependent Variable: ETR2? Method: Panel Least Squares Date: 06/01/13 Time: 20:01 Sample: Included observations: 13 Cross-sections included: 62 Total pool (unbalanced) observations: 803 Variable Coefficient Std. Error t-statistic Prob. C IPC INFL YEAR ROA? ROE? LEVIER? INVINT? CINT? SALARIATI? 1.02E E RATA_IND? E R-squared Mean dependent var Adjusted R-squared S.D. dependent var S.E. of regression Akaike info criterion Sum squared resid Schwarz criterion Log likelihood Hannan-Quinn criter F-statistic Durbin-Watson stat Prob(F-statistic)