The Investigation of Membership Effect in Business Group on the Firms’ Effective Tax Rate

Subject Areas :

Ahmad  Khodami Pour ¹ (دانشیار بخش حسابداری دانشگاه شهید باهنر کرمان)
Meysam  amini nia ² (دانشجوی کارشناسی ارشد حسابداری دانشگاه شهید باهنر کرمان)
Mohammad Hasan  Fadavi ³ (دانشجوی کارشناسی ارشد حسابداری دانشگاه شهید باهنر کرمان)

Received: 2015-05-08 Accepted : 2015-05-08 Published : 2013-08-23

Keywords: Effective tax rate, Business Group, profitability Before Tax,

Abstract :

The purpose of this study is Investigation of membership effect in business group on the firms’ effective tax rate. The study sample consisted 67 Firms listed in Tehran stock Exchange during the 1381 to 1389 and effective tax rate has been calculated by dividing the tax expense on profit before tax. For testing the research hypothesizes have been used T-test and Ordinary Least Squares regression(OLS). The result shows that effective tax rate of the group member firms is significantly less than independent firms. Also there isn’t significant relationship between interaction of profitability and group with effective tax rate. In other words, there isn’t significantly difference between positive association profitability before tax and effective tax rate in business group member firms and independent firms.

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