scholarly journals The Effects of Management Practices on Effective Tax Rates: Evidence from Ecuador

2021 ◽  
Author(s):  
Javier Beverinotti ◽  
Gustavo Canavire-Bacarreza ◽  
María Cecilia Deza ◽  
Lyliana Gayoso de Ervin
Keyword(s):  
Management Practices ◽  
Management Practice ◽  
Manufacturing Firms ◽  
Tax Revenue ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Data Set ◽  
Internal Revenue ◽  
Fiscal Incentives ◽  
The Cost

This paper examines the effects of management practices on effective tax rates (ETR) in a sample of medium and large manufacturing firms in Ecuador. We use a novel data set on management practice scores matched with administrative tax data from the Superintendence of Companies and the Internal Revenue Services of Ecuador based on firms' tax filings. We find that better management practices are positively associated with effective tax rates, defined as the share of tax obligations to profits. This result is robust under various specifications controlling for different covariates, and to different measures of effective tax rates. Furthermore, our findings indicate that the use of fiscal incentives is positively associated with higher effective tax rates. However, firms that use fiscal incentives are able to fatten or reduce their effective tax rates as management practices improved. Overall, our findings suggest that government-sponsored policies that seek to promote better management practices may be self-sustained, if the additional tax revenue expected from better management practices through higher profits is able to cover the cost of the programs.

Managerial Practices in a High Cost Manufacturing Environment

2018 ◽  
pp. 1749-1768
Author(s):  
Renu Agarwal ◽  
Christopher Bajada ◽  
Paul J. Brown ◽  
Roy Green
Keyword(s):  
New Zealand ◽  
Best Practice ◽  
Management Practices ◽  
Management Practice ◽  
Low Cost ◽  
Management Strategies ◽  
Manufacturing Firms ◽  
Labour Cost ◽  
Managerial Practices ◽  
Management Capability

This chapter explores the management strategies adopted by manufacturing firms operating in high versus low cost economies and investigates the reasons for differences in the management practice choices. The study reported in this chapter identifies a subset of countries that have either high or low labour costs, with USA, Sweden, and Japan being high, and India, China, and Brazil being low labour cost economies. The high labour cost manufacturing firms are found to have better management practices. In this chapter, the authors find that Australia and New Zealand manufacturing firms face relatively high labour cost but lag behind world best practice in management performance. The chapter concludes by highlighting the need for improvement in management capability for Australian and New Zealand manufacturing firms if they are to experience a reinvigoration of productivity, competitiveness, and long-term growth.

scholarly journals Effect of Environmental Management Practices and Sustainability on Some Selected Manufacturing Firms in South East Nigeria

2021 ◽  
Vol 13 (18) ◽  
pp. 10372
Author(s):  
Joseph Obamen ◽  
Solomon Omonona ◽  
Olabanji Oni ◽  
Olamide Felix Ohunyeye
Keyword(s):  
Environmental Management ◽  
Environmental Sustainability ◽  
Management Practices ◽  
Survey Design ◽  
Management Practice ◽  
Principal Component ◽  
Manufacturing Firms ◽  
The Body ◽  
Environmental Management Practices ◽  
Environmental Management Practice

The manufacturing sector in South East Nigeria has many challenges concerning the incorporation of sustainability into the corporate strategies and operations of the industry, given its extractive nature and the numerous social and environmental impacts related to production activity. Attaining organizational sustainability requires the implementation of environmental management practice tools that create long-term value by embracing opportunities and managing risks derived from economic, environmental, and social developments. Therefore, this study investigated the effect of environmental management practice tools on the sustainability of manufacturing organizations. The goal of the study was to determine the relationship between environmental management practice tools and sustainability. A survey design was used for this study. A total of 363 questionnaires were distributed to the employees of the manufacturing firms, which included managers, supervisors, and line staff. The data collected were analyzed using Principal Component Analysis (PCA). Primarily, the study established that environmental management practice tools were significantly and positively related to sustainability. Thus, the study concluded that environmental management practice tools contribute significantly and positively to firms’ social, economic, and environmental sustainability. Additionally, the result of this study underlines the significance to manufacturing firms of carrying out environmental management practices. The ramifications are that manufacturing firms attempting to assert sustainability through EMP should have related knowledge with EMP. Furthermore, their environmental advantages will not convert into sustainability. The study adds to the body of knowledge by giving experimental pieces of proof identifying the interrelationships between EMP and sustainability.

The Effect of Information Complexity on Analysts' Use of That Information

2003 ◽  
Vol 78 (1) ◽  
pp. 275-296 ◽  
Author(s):  
Marlene A. Plumlee
Keyword(s):  
Tax Reform ◽  
Public Information ◽  
Tax Law ◽  
Specific Information ◽  
Information Complexity ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Case Complexity ◽  
Complex Information ◽  
The Cost

In this study I investigate the relation between information complexity and financial analysts' use of that information. I rank by complexity six tax-law changes enacted by the Tax Reform Act of 1986, and then examine analysts' explicit forecasts of effective tax rates around those changes. I show that analysts' revisions of their forecasts of effective tax rates appear to impound the effects of the less complex tax-law changes but not the more complex changes. Furthermore, as expected, if analysts assimilate less complex (but not more complex) information, the magnitude of the errors in their forecasts of effective tax rates increases with the effects of the more complex tax-law changes, but is unrelated to the less complex changes. Taken together, these results indicate that analysts assimilate less complex information to a greater extent than they assimilate more complex information. Either analysts' abilities to incorporate specific information into their forecasts is a decreasing function of the complexity of that information, or analysts choose not to assimilate complex information because the cost would exceed the benefit. In either case, complexity reduces analysts' use of information. These results demonstrate the importance of considering information attributes, such as complexity, when investigating why analysts' forecasts fail to incorporate all public information.

scholarly journals THE COST OF DIRECT TAXATION ON INVESTMENT IN BRAZIL

2017 ◽  
Vol 21 (1) ◽  
Author(s):  
Nelson Leitão Paes
Keyword(s):  
Tax Rates ◽  
Marginal Tax Rate ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Direct Taxation ◽  
Economic Profit ◽  
The Rich ◽  
The Cost ◽  
Rich Countries ◽  
The Impact

ABSTRACT This paper analyzed the impact of taxation on the investment in Brazil, focusing on the taxation of corporate income. Following the literature, it was used an economic model to calculate two indicators of effective tax rates - Effective Marginal Tax Rate (EMTR) and Effective Average Tax Rate (EATR). The EMTR measures the increase of the cost of capital due to corporate income tax. The EATR represents a measure of the average tax rate levied on an investment that has a pre-defined economic profit. The results suggest Brazil may face some difficulties to attract foreign investment. The country presents high rates for EATR and EMTR, higher than the average of the rich countries and well above the figures of development countries like Chile, Mexico, South Africa, Russia and China, potential competitors in attracting investments.

Managerial Practices in a High Cost Manufacturing Environment

2014 ◽  
pp. 268-289
Author(s):  
Renu Agarwal ◽  
Christopher Bajada ◽  
Paul J. Brown ◽  
Roy Green
Keyword(s):  
New Zealand ◽  
Best Practice ◽  
Management Practices ◽  
Management Practice ◽  
Low Cost ◽  
Management Strategies ◽  
Manufacturing Firms ◽  
Labour Cost ◽  
Managerial Practices ◽  
Management Capability

This chapter explores the management strategies adopted by manufacturing firms operating in high versus low cost economies and investigates the reasons for differences in the management practice choices. The study reported in this chapter identifies a subset of countries that have either high or low labour costs, with USA, Sweden, and Japan being high, and India, China, and Brazil being low labour cost economies. The high labour cost manufacturing firms are found to have better management practices. In this chapter, the authors find that Australia and New Zealand manufacturing firms face relatively high labour cost but lag behind world best practice in management performance. The chapter concludes by highlighting the need for improvement in management capability for Australian and New Zealand manufacturing firms if they are to experience a reinvigoration of productivity, competitiveness, and long-term growth.

Don’t Tax My Dreams: The Lottery Sales Response to Gambling Tax Changes

2020 ◽  
Vol 48 (5) ◽  
pp. 627-649
Author(s):  
Luke P. Rodgers
Keyword(s):  
New Hampshire ◽  
Informed Choice ◽  
The United States ◽  
Tax Revenue ◽  
Tax Rates ◽  
Difference In Differences ◽  
Data Set ◽  
Cross Border ◽  
Border Areas ◽  
Tax Changes

Legalized gambling is a popular source of tax revenue in the United States. However, the ability to increase gambling tax revenue through higher tax rates is limited by the presence of nontaxable and cross-border substitutes. In July 2009, New Hampshire introduced a 10 percent tax on gambling winnings, substantially reducing the expected value of a gamble while leaving other aspects of gambling unaffected; the tax was repealed in May 2011. Using a novel data set and a difference-in-differences framework, I document significant reductions in New Hampshire lottery sales under the tax policy and estimate a price elasticity greater than −1. The response is consistent with informed choice by consumers, and larger changes in border areas provide suggestive evidence of cross-border shopping.

scholarly journals Farm Level Technical Efficiency of Paddy Production in Andhra Pradesh: An Empirical Evidence from the Cost of Cultivation Survey Data

2020 ◽  
Vol 65 (4) ◽  
Author(s):  
Paul, K.S.R.
Keyword(s):  
Technical Efficiency ◽  
Andhra Pradesh ◽  
Management Practices ◽  
Secondary Data ◽  
Yield Gap ◽  
Data Set ◽  
Farm Level ◽  
Analysis Technique ◽  
Efficient Resource ◽  
The Cost

The study calculated technical efficiency, Data Envelopment Analysis technique was employed, one of the non-parametric linear programing techniques to estimate the farm level technical efficiency of paddy production in Andhra Pradesh. This secondary data set contained 541 paddy producing farms/units across Andhra Pradesh state under five agro climatic zones viz North coastal, Godavari, Krishna, Southern and Scarce rainfall zones was studied. The results showed that the overall technical efficiency of the entire sample is 86.8 per cent inferring that about 13 per cent of the potential paddy yield is lost because of technical inefficiency in Andhra Pradesh. The yield gap was found to be 981.10 kg/ha in Godavari zone and a minimum yield gap of 335 kg/ha in North coastal zone with an average yield gap of 663 kg/ha for Andhra Pradesh indicating domestic paddy production could be significantly increased only by improving farmers practices with the current amount of resource they are using. The study suggested that there should be exposure to improved technologies, frequent trainings and experience sharing mechanisms with efficient resource management practices.

Does Tax Risk Affect Investor Valuation of Tax Avoidance?

2017 ◽  
Vol 34 (1) ◽  
pp. 151-176 ◽  
Author(s):  
Katharine D. Drake ◽  
Stephen J. Lusch ◽  
James Stekelberg
Keyword(s):  
Firm Value ◽  
Tax Avoidance ◽  
Cash Flows ◽  
Equity Capital ◽  
Tax Rates ◽  
Cost Of Equity Capital ◽  
Effective Tax Rates ◽  
Fin 48 ◽  
Tax Benefits ◽  
The Cost

We examine how investors value tax avoidance (measured as the level of cash effective tax rates [ETRs]) and tax risk (measured as the volatility of cash ETRs), and how these constructs interact to influence firm value. Our results suggest that investors positively value tax avoidance but negatively value tax risk and, most importantly, that greater tax risk moderates the positive valuation of tax avoidance. In additional analyses, we find that contemporaneous measures of tax avoidance and tax risk provide insight into future tax cash flows and that our results hold using GAAP ETR-based measures of tax avoidance and tax risk. Finally, our results are robust to a battery of sensitivity checks including controlling for idiosyncratic and systematic risk, the cost of equity capital, and unrecognized tax benefits in the post-FIN 48 period, among others. Broadly, our findings provide new evidence on how taxes affect firm value and suggest that tax avoidance and tax risk should be considered jointly rather than in isolation.

scholarly journals A macroeconomic approach to estimating effective tax rates in South Africa

2004 ◽  
Vol 7 (1) ◽  
pp. 117-131 ◽  
Author(s):  
HA Amusa
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Effective Rate ◽  
Capital Inflows ◽  
Tax Revenue ◽  
Tax Rates ◽  
National Accounts ◽  
Capital Income ◽  
Effective Tax Rates ◽  
Labour Income

Using data contained in South Africa's national accounts and revenue statistics, this paper constructs time-series of effective tax rates for consumption, capital income, and labour income. The macroeconomic approach allows for a detailed breakdown of tax revenue accruing to general government and the corresponding aggregate tax bases. The methodology used also yields effective rate estimates that can be considered as being consistent with tax distortions faced by a representative economic agent within a general equilibrium framework. Correlation analysis reveals that savings (as a percentage of GDP) is negatively correlated with both capital income and labour income tax rates. Investment (as a percentage of GDP) is positively correlated with the capital income tax rate, an outcome suggestive of the direct relationship between volatile capital inflows into South Africa and capital tax revenue

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