Determinants of effective tax rates for firms listed on Chinese stock market: Panel models with two-sided censors

Yong-Ching Chiou (), Yao-Chih Hsieh () and Wenyi Lin ()
Additional contact information
Yong-Ching Chiou: Department of Insurance and Finance , National Taichung University of Science and Technology, Taiwan
Yao-Chih Hsieh: Department of Public Finance, Feng Chia University, Taiwan
Wenyi Lin: Graduate Institute of Financial and Economic Law, Feng Chia University, Taiwan

Journal of Economic and Financial Studies (JEFS), 2014, vol. 2, issue 5, 1-5

Abstract: This paper is to investigate the determinants effective tax rate for the firms listed on China’s stock markets. The panel data consists of 481 firms from 2007 to 2009 as our empirical data. In order to illustrate a country’s tax policies on firms’ real tax burdens, the dependent variable, ETR, is left-censored at 0 and right-censored at 1, the estimation for panel data model with two-sided censoring suggested by Alan, Honor´e, and Leth-Petersen (2014) is implemented in this paper. There are two important findings are obtained: first, this model can add more observations especially the observations with tax preferences. Second, theories suggest that ETR reflects outcomes of tax preference and this paper is the first time to consider the effective tax rates set between 0 and 1 and this range is more meaningful for the ETRs.

Keywords: Effective tax rate; Political power (cost) hypothesis; Tax preference; Two-sided censoring. (search for similar items in EconPapers)
JEL-codes: C21 C52 H22 H25 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://journalofeconomics.org/index.php/site/article/view/141/88 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lrc:lareco:v:2:y:2014:i:5:p:1-5

Access Statistics for this article

More articles in Journal of Economic and Financial Studies (JEFS) from LAR Center Press
Bibliographic data for series maintained by S Marjan ( this e-mail address is bad, please contact ).