The role of regional tax autonomy, firm size, and business groups in tax avoidance: evidence from Spain
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2024-07-10
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Taylor & Francis
Resumen
This paper investigates the influence of regional tax autonomy, firm size, and business group affiliation on corporate tax burden in a large sample of Spanish firms, including non-listed firms, from 2007 to 2016. Our findings reveal that firms located in tax- autonomous regions exhibit lower effective corporate tax rates (ETR), providing new empirical support for the horizontal tax com-petition theory. Additionally, we identify a positive relationship between firm size and corporate tax burden, aligning with the political cost theory. Furthermore, we find that group-affiliated firms face a higher ETR than independent firms, and that group affiliation attenuates the differences in the tax burden experienced by large and small firms.
Palabras clave
Firm size
Business group
Effective tax rate
Tax autonomy
Spain
Tax avoidance
Business group
Effective tax rate
Tax autonomy
Spain
Tax avoidance
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Materias
Cita
Garmendia-Lazcano, A., & Baselga-Pascual, L. (2024). The role of regional tax autonomy, firm size, and business groups in tax avoidance: evidence from Spain. Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad. https://doi.org/10.1080/02102412.2024.2377448