INFLUENCE OF FINANCIAL CONSTRAINT AND GLOBAL FINANCIAL CRISIS ON THE EFFECTIVE TAX RATE OF LATIN AMERICAN COMPANIES

Abstract

The aim was to analyze whether financially constrained (RF) Latin American companies, and in periods of global financial crisis, reduce the Effective Tax Rate (ETR). The sample was composed of non-financial publicly traded firms in Latin America from 2006 to 2015, of which 5,328 are firms per year. An association between RF and ETR was confirmed, but not observed in all Latin American countries. It is considered that due to institutional differences between these countries the results were not uniform, but the findings have relevant information about the behavior of Latin American firms in the face of financial constraints and periods of crisis in possible tax avoidance practices.

https://doi.org/10.3232/GCG.2018.V12.N1.05
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