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Research of Corporate Tax Impact on Financial Performance. Case of Companies Listed on Bucharest Stock Exchange

Author

Listed:
  • Ileana Cosmina PITULICE

    (The Bucharest University of Economic Studies, Romania)

  • Aurelia STEFANESCU

    (The Bucharest University of Economic Studies, Romania)

  • Viorica Georgiana MINZU

    (The Bucharest University of Economic Studies, Romania)

  • Adriana Florina POPA

    (The Bucharest University of Economic Studies, Romania)

  • Arina Mihaela NICULESCU (DIACONU)

    (Valahia University of Targoviste, Romania)

Abstract

Financial performance is the objective of any economic entity, regardless the domain it activates in. From the decision-making process perspective, the corporate tax is included in the equation of financial performance, considering that it has multiple informational facets at the company's level. Considering the computation formula for the due tax as a premise, one can say that along with the economic development of the company, there is a positive correlation degree between it and the fiscal liability, determined by the multiplication of the number of transactions generating tax. Therefore, the corporate tax becomes relevant information for decision making in terms of organization form, reinvestment and others. In this context, our research plans to identify a relation between corporate tax and the financial performance of an entity. In this respect, two econometric models were built showing that the effective tax rate passes the tests of significance and influences the performance indicators in a negative way.

Suggested Citation

  • Ileana Cosmina PITULICE & Aurelia STEFANESCU & Viorica Georgiana MINZU & Adriana Florina POPA & Arina Mihaela NICULESCU (DIACONU), 2016. "Research of Corporate Tax Impact on Financial Performance. Case of Companies Listed on Bucharest Stock Exchange," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 1(2), pages 203-216, December.
    • Handle: RePEc:rom:merase:v:1:y:2016:i:2:p:203-216
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    Citations

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    Cited by:

    1. Amelia Bucur & Gabriela Dobrotă & Oana Dumitraşcu, 2019. "Implications of Fiscal Pressure on the Sustainability of the Equilibrium and Performance of Companies. Evidences in the Rubber and Plastic Industry from Romania," Sustainability, MDPI, vol. 11(7), pages 1-16, April.

    More about this item

    Keywords

    corporate tax; net profit; econometric model; financial performance; financial position; Romania;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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