Purpose

The purpose of this paper is to empirically investigate the factors deriving effective tax rate (ETR) for Indian manufacturing firms in different sectors. The study also tries to analyze the sensitiveness of ETR because of shocks on its key determinants.

Design/methodology/approach

The study is using Arellano–Bond dynamic panel regression model to identify the key drivers of ETR, and impulse response functions of panel vector auto-regression model to analyze the response of ETR because of one standard deviation (SD) shock to its key determinants.

Findings

This study concludes that ETR is significantly explained by firm size, profitability, growth rate and non-debt tax shield in most of the sectors, and debt ratio, asset tangibility and age of the firms are impacting ETR differently across sectors. In case of entire manufacturing sector, firm size, profitability, growth and non-debt tax shield are driving ETR positively and asset tangibility is driving ETR negatively. Interest coverage ratio (ICR) and firm age are not significant drivers of ETR. ETR is positively related with firm size, but responses negatively when there is an immediate shock to firm size. Similarly, ETR is negatively related with asset tangibility, but responds positively following an immediate shock to it. Overall, ETR is more sensitive and responses significantly because of shocks in firm size, profitability, growth, asset tangibility and non-debt tax shield whereas, the response is very marginal following shocks to debt ratio, ICR and age of the firm.

Research limitations/implications

Firm managers may find the study useful to understand the receptiveness of ETRs at each sector level. The empirical findings are not only validating the theoretical developments but also providing a root cause analysis to the firm managers to understand the cause and consequence of ETRs for firms at different sectors.

Originality/value

Empirically investigating the factors driving ETR and analyzing its sensitiveness because of one SD shock on its key determinants for Indian manufacturing firms from different sectors is the originality of this study. Developing a strong theoretical background and empirically validating it through advanced methodology makes the study unique.

中文翻译：

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有效税率对公司特征的接受度：对印度上市公司的实证分析

目的

本文的目的是对不同行业的印度制造公司的有效税率（ETR）进行实证研究。该研究还试图分析由于ETR关键决定因素受到冲击而引起的ETR敏感性。

设计/方法/方法

该研究使用Arellano–Bond动态面板回归模型来确定ETR的关键驱动力，并使用面板矢量自动回归模型的脉冲响应函数来分析ETR的响应，因为标准偏差（SD）对其关键决定因素产生了冲击。

发现

这项研究的结论是，大多数行业的公司规模，盈利能力，增长率和非债务税盾明显地解释了ETR，而债务比率，资产有形性和公司的年龄对各个行业的ETR产生了不同的影响。就整个制造业而言，公司规模，获利能力，增长和非债务税收保护对ETR都有积极的推动作用，而资产有形性对ETR则有不利的推动作用。利息覆盖率（ICR）和公司年龄并不是ETR的重要驱动因素。ETR与公司规模呈正相关，但是当企业规模立即受到冲击时，ETR则呈负相关。同样，ETR与资产有形性负相关，但在受到直接冲击后积极响应。总体而言，由于公司规模，盈利能力，增长，

研究局限/意义

公司经理可能会发现该研究对于理解各个部门级别的ETR的接受度很有帮助。实证结果不仅验证了理论发展，而且为公司经理提供了根本原因分析，以了解不同行业公司ETR的因果。

创意/价值

本研究的独创性是，通过经验调查驱动ETR的因素并分析其敏感性，这是因为SD对其主要决定因素的影响（来自不同行业的印度制造公司）受到SD冲击。扎实的理论基础和通过先进的方法进行经验验证可以使这项研究独特。