earticle

영어

The measurement of corporation`s effective tax rates(ETR) using financial statement is important for tax policy makers and accounting researchers. Tax policy makers use ETR when assessing the impact of tax laws. Accounting researchers investigating a number of topics have relied on ETR calculated from financial statement information. ETRs have been used in tax policy research to evaluate the equity and/or efficiency of the corporate income tax system. Equity of the tax system is often measured by comparing relative tax burdens using the average effective tax rate, generally defined as the ratio of taxes paid to income. ETR is generally computed on an annual basis using taxes and income derived from financial statement data. The purpose of this paper is to provide a review of the accounting literature involving corporate ETRs. The finding of this analysis is that there are many research opportunities in the examination of equity issues using ETRs. Research results exhibit a high degree of of sensitivity to the many different definitions of ETR as well as to differences across studies in the use of data sources, time periods, and sample specifications.