Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia

Grant Richardson; Roman Lanis

doi:10.1016/j.jaccpubpol.2007.10.003

Author(s)

Grant Richardson
Roman Lanis

Related Research Unit(s)

Department of Accountancy

Detail(s)

Original language	English
Pages (from-to)	689-704
Journal / Publication	Journal of Accounting and Public Policy
Volume	26
Issue number	6
Publication status	Published - Nov 2007

Link(s)

DOI	DOI https://doi.org/10.1016/j.jaccpubpol.2007.10.003 Final Published version
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Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-36148972868&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(77d6fe76-d247-4ea5-96aa-6e2d88f58682).html

Abstract

This study examines the determinants of the variability in corporate effective tax rates in Australia spanning the Ralph Review of Business Taxation reform. Our results indicate that corporate effective tax rates are associated with several major firm-specific characteristics, including firm size, capital structure (leverage) and asset mix (capital intensity, inventory intensity and R&D intensity). While the Ralph Review tax reform had a significant impact on many of these associations, corporate effective tax rates continue to be associated with firm size, capital structure and asset mix after the tax reform. © 2007 Elsevier Inc. All rights reserved.