Changes in corporate effective tax rates over the past 25 years

An empirical replication

Thèse de Bachelor , 2022 , 54 Pages , Note: 1.3

Droit - Droit fiscal

This paper investigates trends in the corporate effective tax rate by replicating the renowned paper of Dyreng et al. published in 2016. Corporate effective tax rates have considerably declined over the period of 1988-2021. Both purely domestic firms and multinationals have seen a decline in effective tax rates with domestics having lower mean effective tax rates than their internationally operating peers. Moreover, both foreign and domestic effective tax rates have decreased for multinationals. Little of the decrease in effective tax rate can be explained by analysing the impact of firm characteristics and tax legislations.

Inhaltsverzeichnis (Table of Contents)

• Abstract
• List of figures
• List of tables
• 1. Introduction
• 2. Hypotheses development
• 3. Sample and descriptive statistics
• 4. Main results of hypotheses tests
  • 4.1. The effective tax rates of U.S. corporations have decreased over time
    • 4.1.1. Replication of Dyreng et al.'s model
    • 4.1.2. Extension of the sample period to 2021
  • 4.2. The effective tax rates of multinational firms are declining more over time than those of purely domestic firms
    • 4.2.1. Replication of Dyreng et al.'s model
    • 4.2.2. Extension of the sample period to 2021
  • 4.3. For multinationals the effective tax rate on foreign income declines more over time than does the effective tax rate on domestic income
    • 4.3.1. Replication of Dyreng et al.'s model
    • 4.3.2. Extension of the sample period to 2021
• 5. Determinants of effective tax rates
  • 5.1. The effect of changes in firm characteristics
    • 5.1.1. Replication of Dyreng et al.'s model
    • 5.1.2. Extension of the sample period to 2021
  • 5.2. The effect of changes in the U.S. tax system over time
    • 5.2.1. Replication of Dyreng et al.'s model
    • 5.2.2. Extension of the sample period to 2021
• 6. Summary of findings

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research aims to examine trends in the corporate effective tax rate in the United States by replicating and extending the findings of a previous study by Dyreng et al. (2016). The paper investigates the changes in effective tax rates over an extended period, focusing on the differences between purely domestic firms and multinational corporations.

• Trends in corporate effective tax rates over time
• Comparison of effective tax rates between domestic and multinational firms
• Impact of firm characteristics on effective tax rates
• Effect of changes in the U.S. tax system on effective tax rates
• Analysis of the impact of multinational firms' foreign operations on their effective tax rates

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter introduces the topic of corporate effective tax rates and the importance of their analysis. It outlines the research question and the overall objectives of the paper.
• Chapter 2: Hypotheses development This chapter discusses the development of hypotheses based on existing literature and the key factors influencing corporate effective tax rates. It explains the rationale behind the hypotheses and the expected relationships between variables.
• Chapter 3: Sample and descriptive statistics This chapter presents the sample selection and descriptive statistics for the study. It details the data sources used, the chosen time period, and the variables considered in the analysis. It also provides a summary of the descriptive statistics for the key variables of interest.
• Chapter 4: Main results of hypotheses tests This chapter examines the main results of the hypothesis tests conducted to investigate the trends in corporate effective tax rates. It analyzes the impact of both firm characteristics and tax legislation on the observed changes. The chapter examines the differences in effective tax rates between domestic and multinational firms and investigates the effects of foreign operations on the overall tax burden.
• Chapter 5: Determinants of effective tax rates This chapter delves deeper into the determinants of corporate effective tax rates. It investigates the impact of changes in both firm characteristics and the U.S. tax system on the observed trends. This chapter examines the effect of factors such as firm size, industry, and financial leverage on effective tax rates, as well as the influence of changes in tax legislation.

Schlüsselwörter (Keywords)

This paper focuses on the effective tax rates of U.S. corporations, examining the influence of both domestic and international operations. It investigates the changing tax landscape, including the impact of firm characteristics and tax legislation. Key terms and concepts include corporate effective tax rate, multinational corporations, domestic firms, tax system, firm characteristics, and the impact of foreign income.

• Université: University of Mannheim
• Note: 1.3
• Auteur: André Hermann Frank (Auteur)
• Année de publication: 2022
• Pages: 54
• N° de catalogue: V1266620
• ISBN (PDF): 9783346706218
• ISBN (Livre): 9783346706225
• Langue: anglais
• mots-clé: changes