Determinants of Corporate Effective Tax Rate: Evidence for Eurozone companies between 2004-2014

  • Rafael Molina Llopis Universidad de Valencia
  • Antonio Barberá Martí Elastic Confort
Keywords: tax burden; ETR; listed companies; Eurozone; panel data, presión fiscal, tipo impositivo efectivo, empresas cotizadas, eurozona, datos de panel


This paper studies the effect of usual determinants of corporate Effective Tax Rates (ETR) based on a panel of 1.942 listed Eurozone companies. First, we carry out a comparative analysis of the Effective Tax Rate with special attention to the differences among the old and new members of the Eurozone. Then, from the Orbis database and the period 2004-2014, we estimate four regressions by random and fixed effects following the methodology of panel data. The results confirm that effective types supported by the new members (Slovenia, Cyprus, Malta, Slovakia, Estonia and Latvia) are significantly lower than those of older members. Moreover, corporate tax burden is negatively conditioned by capital intensity, economic profitability and the cost of debt; but positively conditioned by the level of debt and financial profitability, being a non-linear relationship with the size.


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Author Biographies

Rafael Molina Llopis, Universidad de Valencia

Profesor titular del Departamento de Contabilidad de la Universidad de Valencia, director del Máster en Auditoría Integral y Control de Gestión acreditado internacionalmente por la ACBSP y presidente de la Comisión de Normas Internacionales de Información Financiera de la Asociación Iberoamericana de Control de Gestión (AICOgestión). España.

Antonio Barberá Martí, Elastic Confort

Licenciado en Administración y Dirección de Empresas por la Universidad de Valencia y Máster en Contabilidad, Auditoría y Control de Gestión. Actualmente, doctorado en Contabilidad en la Universidad de Valencia y trabaja en el departamento financiero del grupo Elastic Confort. España.

How to Cite
Molina Llopis, R., & Barberá Martí, A. (2017). Determinants of Corporate Effective Tax Rate: Evidence for Eurozone companies between 2004-2014. Harvard Deusto Business Research, 6(1), 69-82.