| Summary: | 碩士 === 國立中山大學 === 企業管理研究所 === 81 === The influence of political environment is more and more
important. Firm size has been used as a proxy for the firm''s
political costs and hence manager''s proclivity to choose income
reducing accounting methods. This study examine the association
between firm size and effective tax rates. Besides, effective
tax rates, however, may contain a factor, net operating losses
(NOLs), attributable to firm''s operating results and experience
rather than to success in the political process. The purpose of
this study is also to assess the extent of the effect of NOLs
on the overall relationship of firm size and effective tax
rates. Path analysis is employed to isolate the effect of firm
size on effective tax rates that is attribu- table to NOLs. The
findings, which are insensitive to alternative measures of firm
size and alernative measures of effective tax rates, are mostly
consistent with the political cost hypothesis in Positive
Accounting Theory. And, NOLs don''t affect the relation- ship
between firm size and effective tax rates. The association of
firm size and effective tax rates will not be a biased basis
for drawing inferences about political cost hypothesis.
|
|---|
