Investor Decision-making in the Context of the Effective Corporate Taxation

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dc.contributor.authorKonečná, Veronika
dc.contributor.authorAndrejovská, Alena
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2020-04-06T13:38:24Z
dc.date.available2020-04-06T13:38:24Z
dc.description.abstractMobility of capital and the efficiency of corporate taxation are important terms for investors who are deciding on the allocation of investment. At present, capital mobility is a modern phenomenon that cuts budgets for tax revenues and affects overall employment and economic growth. The corporate taxation principle means the profit is immediately taxed at the shareholders' level and the tax rate of the shareholders is used as a tax rate for investment profits. The aim of the article is quantifying the degree of dependence between the effective rate and the selected microeconomic determinants, which influence the investment decisions of foreign investors. To achieve the aim, we have selected and analyzed the microeconomic determinants that monitored the economic indicators in the companies. In the article, we focused on the leverage effect, the capital intensity, the company's profitability, the share of development and research spending that companies are willing to provide, and the nominal tax rate, which is the most generalized and primary information for investors. Data for the empirical research are from the financial statements of companies listed on stock exchanges, which lead the business activities in the Member States of the European Union. The data comes from the Amadeus database (2018). Through linear regression analysis, we research the impact of microeconomic determinants and effective tax rates over the period 2008 to 2016. The analysis has confirmed the established hypothesis. The results of the analysis pointed to the profitability of the company as the indicator that most influence the effective tax rate. Increasing it by 1% will bring down the effective tax rate by 2.451%. The results were confronted with the theoretical theories of many authors who evaluated this relationship.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2020-1-008
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/154704
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
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dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjecteffective corporate taxationen
dc.subjectprofitabilityen
dc.subjectnominal tax rateen
dc.subjectmicroeconomic determinantsen
dc.subjectmanager decision makingen
dc.subject.classificationH20
dc.subject.classificationH21
dc.subject.classificationH25
dc.titleInvestor Decision-making in the Context of the Effective Corporate Taxationen
dc.typeArticleen
local.accessopen
local.citation.epage120
local.citation.spage111
local.facultyFaculty of Economics
local.filenameEM_1_2020_08
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue1
local.relation.volume23
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