Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/27614
Title: The Relationship Between Company Size and Effective Tax Rates: A Test of political success - Evidence from Australian Companies
Contributor(s): Matchett, Carol A (author); Chen, George  (supervisor)orcid ; Simmons, Phillip  (supervisor)
Conferred Date: 2017-10-28
Copyright Date: 2017-03-31
Thesis Restriction Date until: Access restricted until 2019-10-28
Open Access: No
Handle Link: https://hdl.handle.net/1959.11/27614
Abstract: This study investigates whether large Australian companies use their political power to lower their effective tax rates (ETRs) over and above their political costs. It also tests whether there is an industry effect on ETRs for the mining and financial industries in Australia. This study expands the current research into the effect of political power on ETRs by incorporating other tax rate theories. Using 402 mature Australian public companies over a 13-year period the study applies three separate tests to profitable companies.
Firstly, we employ panel data analysis to examine changes in the ETR of 55 profitable companies over the 2000-2012 periods. Secondly, we use cross-sectional analysis to ascertain the relationship that the effect can be seen over a long period by using panel data testing methodology between company size and ETR for profitable companies on a year-by-year basis. Finally, we assess various tax-rate theories by examining the ETR paid by the profitable public companies in 2012.
Out findings from this study provide evidence that there is a consistent negative relationship between company size and ETRs. We suggest, that further research incorporating the use of qualitative data would be needed to counter the effect of political costs on individual companies and industries.
Publication Type: Thesis Masters Research
Fields of Research (FoR) 2008: 140215 Public Economics- Taxation and Revenue
140209 Industry Economics and Industrial Organisation
140210 International Economics and International Finance
Fields of Research (FoR) 2020: 350207 International finance
380115 Public economics - taxation and revenue
Socio-Economic Objective (SEO) 2008: 910110 Taxation
910303 Trade Policy
Socio-Economic Objective (SEO) 2020: 150210 Taxation
150103 Trade policy
Open Access Embargo: 2019-10-29
HERDC Category Description: T1 Thesis - Masters Degree by Research
Appears in Collections:Thesis Masters Research
UNE Business School

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