Accounting policy choice: the relationship between corporate tax burdens and company size

Holland, Kevin (1998) Accounting policy choice: the relationship between corporate tax burdens and company size. Journal of Business Finance & Accounting, 25 (3&4), 265-288. (doi:10.1111/1468-5957.00187).

Abstract

Whilst there have been a number of papers that test the Watts and Zimmerman positive accounting hypotheses in a UK setting, no similar test has been made of the size effect using corporate tax burdens as a proxy for political costs. Using data for 5,998 year-ends from 1968 to 1993 this paper finds that: during 1968–79 there is evidence of a size effect; in a number of years a negative association between firm size and tax burden exists; and of the five industry categories examined, the ‘mineral extractive’ industry had the highest tax burden throughout the period 1968–1979.

This record has no associated files available for download.

Contributors

Download statistics