<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The paper analyzes the relationship between the total tax amount paid by the Romanian companies and several indicators of size, financial performance, and capital structure to identify whether there is an impact of these indicators on the tax potential and to assess the impact of the tax burden on the performance of companies as well. The total tax amount is viewed on the one hand as a tax burden when it is used as an independent variable, and as tax potential when it is used as a dependent variable. To assess these relationships, we applied cross-sectional regression models for each year of analysis, 2014-2018, using balance sheet data from the entire population of Romanian companies. In literature, is questioned only the relationship between tax burden and economic performance. Our study emphasizes the link between tax potential and some characteristics of the companies. We have identified, also, the determinants of return of equity in the case of Romanian companies. Overall, the data reveal major structural changes during the period of analysis. This movement did not affect the tax potential, but the performance of undertakings. Our findings show that it is necessary to rethink economic and tax policies.</p></abstract>

The paper analyzes the relationship between the total tax amount paid by the Romanian companies and several indicators of size, financial performance, and capital structure to identify whether there is an impact of these indicators on the tax potential and to assess the impact of the tax burden on the performance of companies as well. The total tax amount is viewed on the one hand as a tax burden when it is used as an independent variable, and as tax potential when it is used as a dependent variable. To assess these relationships, we applied cross-sectional regression models for each year of analysis, 2014-2018, using balance sheet data from the entire population of Romanian companies. In literature, is questioned only the relationship between tax burden and economic performance. Our study emphasizes the link between tax potential and some characteristics of the companies. We have identified, also, the determinants of return of equity in the case of Romanian companies. Overall, the data reveal major structural changes during the period of analysis. This movement did not affect the tax potential, but the performance of undertakings. Our findings show that it is necessary to rethink economic and tax policies.

Does the Tax Burden impact the Performance of Companies? A case study for Romania

Proceedings of the International Conference on Applied Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The paper analyzes the relationship between the total tax amount paid by the Romanian companies and several indicators of size, financial performance, and...

Does the Tax Burden impact the Performance of Companies? A case study for Romania

Published Online: May 31, 2021

Page range: 188 - 199

DOI: https://doi.org/10.2478/icas-2021-0017

Keywords
taxation, corporate finance, tax potential, econometric modeling, fiscal policy

© 2021 Victor Ogneru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Does the Tax Burden impact the Performance of Companies? A case study for Romania

Published Online: May 31, 2021

Page range: 188 - 199

DOI: https://doi.org/10.2478/icas-2021-0017

Keywordstaxation, corporate finance, tax potential, econometric modeling, fiscal policy

© 2021 Victor Ogneru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
taxation, corporate finance, tax potential, econometric modeling, fiscal policy