Influence of some Characteristics of Listed Companies on Fiscal Pressure

Abstract

Numerous studies in the national and international literature highlight the link between fiscal pressure and various characteristics of companies, such as: company size, level of indebtedness, field of activity in which the company operates, level of investments in fixed or current assets, corporate governance and corporate social responsibility index. In what concerns the link between fiscal pressure and company size, there are two different points of view: one that claims that large companies are subject to greater public scrutiny and therefore bear a "political cost" in the form of higher effective tax rates, and the other which considers that large companies pay less taxes because they allot more resources to tax planning. This study aims to analyse the extent to which the level of fiscal pressure is influenced by the size of companies in our country, particularly those listed on the BVB (Bucharest Stock Exchange), a characteristic defined by three indicators: turnover, average number of employees and total assets held by companies. Regarding the level of fiscal pressure, the variables used in the analysis include the effective tax rate, calculated using calculation formulas that include both current corporate income tax expense and deferred tax expense. Since corporate income tax is only a part of the total taxes and duties that the company has to bear, the research was extended to an indicator that includes in addition to corporate income tax, other expenses incurred by companies as well, respectively those related to contributions for their employees, but also expenses with other taxes and duties due to the state budget.