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Explaining corporate effective tax rates: Evidence from Greece

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  • Stamatopoulos, Ioannis
  • Hadjidema, Stamatina
  • Eleftheriou, Konstantinos

Abstract

This paper examines the determinants of the variability in corporate effective tax rates before and during the financial crisis in Greece, a country that was, and still is, at the core of the European Union’s agenda. Analyzing firm-level data for the period 2000–2014, we find strong evidence that specific firm characteristics including firm size, financial leverage, capital and inventory intensity influence the level of corporate effective tax rates. Our results also indicate that corporate effective tax rates increased in the period after the beginning of the financial crisis, while their association with some firm-specific characteristics was also affected.

Suggested Citation

  • Stamatopoulos, Ioannis & Hadjidema, Stamatina & Eleftheriou, Konstantinos, 2019. "Explaining corporate effective tax rates: Evidence from Greece," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 236-254.
    • Handle: RePEc:eee:ecanpo:v:62:y:2019:i:c:p:236-254
    DOI: 10.1016/j.eap.2019.03.004
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    More about this item

    Keywords

    Corporate taxation; Financial crisis; Greece; Tax determinants;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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