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Marginal Effect of Direct Tax on Profits: A Study on the Taxation of the Finance Industry in Brazil

Author

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  • Jose Antonio de Franca
  • Osvaldo Candido da Silva Filho
  • Wilfredo Sosa Sandoval

Abstract

This study experienced the effect of different regulatory restrictions and macroeconomic status on banks¡¯ profit in Egypt. The study used factor analysis and event study techniques on data that covered the time period from 2003 to 2016 for banking sector as a whole and individual bank unit using a sample of 13 bank units in Egypt; in addition, the study experienced the performance of common stocks of the bank units in the sample. The study found that the development of regulatory restrictions has a positive effect on the profitability of the banking sector; however, due to the differentiated characteristics of individual bank units, this effect was dissimilar for different bank units in the sample. Finally, the study concluded that if individual bank units play their development role in the economy, they will be able to meet the new set of regulatory restrictions and at the same time achieve high rates of return on their assets.

Suggested Citation

  • Jose Antonio de Franca & Osvaldo Candido da Silva Filho & Wilfredo Sosa Sandoval, 2019. "Marginal Effect of Direct Tax on Profits: A Study on the Taxation of the Finance Industry in Brazil," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(3), pages 1-11, March.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:3:p:1-11
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    References listed on IDEAS

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    More about this item

    Keywords

    regulatory restrictions; bank profitability; basel committee; capital adequacy; Egypt;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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