The Relationship between Characteristics of Corporation and The Effective Tax Rate: A Test of the Life Cycle Hypothesis

• Main Authors: Siao, Yong-Jhong, 蕭永忠
• Other Authors: Chung-Kuang Chen
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/82069362900466892064

碩士 === 國立雲林科技大學 === 會計系 === 102 === The present study investigates the relationship between characteristics of corporation and the effective tax rateat different life cycle stages. We collect data for firms listed on the Taiwan Stock Exchange during 2007-2012. Following Anthony and Ramesh (1992), we assign firms into various life cycle portfolios using sales growth, capital spending rate, firm age, and a composite score. Our results suggest that research and development(R&D) and effective tax rate rate has a negative impact, and as firms grow gradually decreased intensity of research and development, the effective tax rate. The inventory and the effective tax rate has a negative impact on firm performance during the firm’s growth stage .Having the inventory and the effective tax rate has a negative effect while the proportion of outside directors has a positive effect on firm performance in mature and decline stages. The financial leverage and the effective tax rate has a negative impact on firm performance during the firm’s growth stage . Having the financial leverage and the effective tax rate has a negative effect while the proportion of outside directors has a positive effect on firm performance in mature and decline stages .The return on assets and effective tax rate rate has a positive , and as firm grow gradually increase intensity of the return on assets, the effective tax rate.