IDEAS home Printed from https://ideas.repec.org/a/vrs/zirebs/v24y2021i2p59-76n1004.html
   My bibliography  Save this article

Determinants of the effective tax burden of companies in the Telecommunications activities in the Republic of Croatia

Author

Listed:
  • Bubanić Marijana

    (Marijana Bubanić is at University of Zagreb, Faculty of Organization and Informatics, Varaždin, Croatia.)

  • Šimović Hrvoje

    (Hrvoje Šimović is at Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia.)

Abstract

The aim of this paper is to identify the determinants of the effective tax burden of companies in the activity division Telecommunication in the Republic of Croatia. The research covers the time interval from 2008 to 2017. Dynamic panel analysis was used to conduct the research. Microeconomic data were obtained from the databases of the Financial Agency, and macroeconomic data from the Central Bureau of Statistics. The results indicate that the effective tax burden of companies in the activity division Telecommunication is affected by the effective tax burden from the previous period, company size, leverage, inventory intensity, profitability and economic cycle. While capital and labour intensity didn`t prove statistically significant. The main limitations of the research lie in the impossibility of generalizing the stated results to all companies from the observed activity, using only one evaluation model, and being a cabinet-type research, without confirmation of the results obtained by companies. The research received several scientific contributions: this is the first study of the determinants of the effective tax burden conducted in the Republic of Croatia; the research covers an entire activity whit different companies sizes, and not as in most previous research, which mainly include only large companies listed on the stock exchange; unlike previous studies that used a balanced sample, and in most cases static panel models, this study used an unbalanced sample and a dynamic panel model.

Suggested Citation

  • Bubanić Marijana & Šimović Hrvoje, 2021. "Determinants of the effective tax burden of companies in the Telecommunications activities in the Republic of Croatia," Zagreb International Review of Economics and Business, Sciendo, vol. 24(2), pages 59-76.
    • Handle: RePEc:vrs:zirebs:v:24:y:2021:i:2:p:59-76:n:1004
    DOI: 10.2478/zireb-2021-0011
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/zireb-2021-0011
    Download Restriction: no
    File URL: https://libkey.io/10.2478/zireb-2021-0011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xing Liu & Shujun Cao, 2007. "Determinants of Corporate Effective Tax Rates: Evidence from Listed Companies in China," Chinese Economy, Taylor & Francis Journals, vol. 40(6), pages 49-67, November.
    2. Richardson, Grant & Lanis, Roman, 2007. "Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia," Journal of Accounting and Public Policy, Elsevier, vol. 26(6), pages 689-704.
    3. Hrvoje Šimoviæ, 2009. "Effective Corporate Income Tax Burden in Croatia," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 12(2), pages 107-121, November.
    4. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LLC, vol. 9(1), pages 86-136, March.
    5. Zimmerman, Jerold L., 1983. "Taxes and firm size," Journal of Accounting and Economics, Elsevier, vol. 5(1), pages 119-149, April.
    6. Georgeta Vintilă & Ştefan Cristian Gherghina & Radu Alin Păunescu, 2018. "Study of Effective Corporate Tax Rate and Its Influential Factors: Empirical Evidence from Emerging European Markets," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(3), pages 571-590, February.
    7. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    8. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    9. Spengel, Christoph & Li, Wei & Zinn, Benedikt & Finke, Katharina, 2011. "The Computation and Comparison of the Effective Tax Burden in Four Asian Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 52(1), pages 13-39, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lazar Sebastian, 2015. "Tax Payments Determinants In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 749-756, July.
    2. Pham, Huy & Ha, Van & Le, Hanh-Hong & Ramiah, Vikash & Frino, Alex, 2024. "The effects of polluting behaviour, dirty energy and electricity consumption on firm performance: Evidence from the recent crises," Energy Economics, Elsevier, vol. 129(C).
    3. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    4. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2016. "Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa," MPRA Paper 76121, University Library of Munich, Germany.
    5. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo‐Obasi, 2020. "Drivers and Persistence of Death in Conflicts: Global Evidence," World Affairs, John Wiley & Sons, vol. 183(4), pages 389-429, December.
    6. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    7. Fabbri, Francesca & Marin, Dalia, 2012. "What explains the rise in CEO pay in Germany? A Panel Data Analysis for 1977-2009," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 374, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    8. Samuel Fosu, 2013. "Banking Competition in Africa: Sub-regional Comparative Studies," Discussion Papers in Economics 13/12, Division of Economics, School of Business, University of Leicester, revised Jun 2013.
    9. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    10. Kampelmann, Stephan & Rycx, François, 2012. "The impact of educational mismatch on firm productivity: Evidence from linked panel data," Economics of Education Review, Elsevier, vol. 31(6), pages 918-931.
    11. Guglielmo Maria Caporale & Anamaria Diana Sova & Robert Sova, 2024. "The Covid‐19 pandemic and European trade flows: Evidence from a dynamic panel model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2563-2580, July.
    12. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    13. repec:swn:wpaper:2023-02 is not listed on IDEAS
    14. Mohammad Ziaul Hoque & MD. Rabiul Islam & Mohammad Nurul Azam, 2013. "Board Committee Meetings and Firm Financial Performance: An Investigation of Australian Companies," International Review of Finance, International Review of Finance Ltd., vol. 13(4), pages 503-528, December.
    15. Simplice A. Asongu & Nicholas Biekpe, 2018. "Globalization and terror in Africa," International Economics, CEPII research center, issue 156, pages 86-97.
    16. Holger Zemanek & Ansgar Belke & Gunther Schnabl, 2009. "Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness," Discussion Papers of DIW Berlin 895, DIW Berlin, German Institute for Economic Research.
    17. Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 393-423, June.
    18. Alpanda, Sami & Honig, Adam, 2014. "The impact of central bank independence on the performance of inflation targeting regimes," Journal of International Money and Finance, Elsevier, vol. 44(C), pages 118-135.
    19. Simplice A. Asongu & Jacinta C. Nwachukwu, 2018. "Increasing Foreign Aid for Inclusive Human Development in Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 443-466, July.
    20. Ng, Joe Cho Yiu & Leung, Charles Ka Yui & Chan, Suikang, 2022. "Corporate Real Estate Holding and Stock Returns: International Evidence from Listed Companies," MPRA Paper 111691, University Library of Munich, Germany.
    21. Jing Li & Tsun Se Cheong & Jianfa Shen & Dahai Fu, 2019. "Urbanization And Rural–Urban Consumption Disparity: Evidence From China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 983-996, September.

    More about this item

    Keywords

    effective tax burden; determinants; impact; activity; Telecommunications; Republic of Croatia;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:zirebs:v:24:y:2021:i:2:p:59-76:n:1004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.