DETERMINANTS OF TAX LOSSES IN SPANISH LISTED COMPANIES

Abstract

This paper analyzes the determinants why a company presents tax losses. For this purpose, we use data on 119 listed companies in Spain during 2004-2011, four years previous to the financial crisis and another four after to the crisis, and we apply a logit model for panel data. The results indicate that the number of companies that generate tax losses are much greater since the beginning of the financial crisis. Further, the estimations show that the presence of tax losses has relation with: the earnings management, the existence of accounting losses, if the company is on legal winding-up situation, the history of tax losses, the fixed assets, the profitability, the differences between Accounting and Taxation, and the compensation of previous exercises tax losses.

https://doi.org/10.3232/GCG.2018.V12.N2.01
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