An Application of the Scholes and Wolfson Model to Examine the Relation Between Implicit and Explicit Taxes and Firm Market Structure

1999 ◽  
Vol 21 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Debra S. Callihan ◽  
Richard A. White
Keyword(s):  
Market Structure ◽  
Rate Of Return ◽  
Tax Rate ◽  
Market Structures ◽  
Structure Characteristics ◽  
Potential Market ◽  
Two Factors ◽  
Tax Returns ◽  
Implicit And Explicit ◽  
Market Structure Characteristics

A firm can take advantage of preferential tax provisions to lower its explicit tax burden. In the absence of market frictions, this differential tax treatment gives rise to differences in pre-tax returns across investments, defined as an implicit tax (Scholes and Wolfson 1992). Market structures that are other than perfectly competitive can impede the realization of implicit taxes (which represent lower pre-tax returns) by allowing firms to earn extra-normal after-tax returns (Wilkie 1992). This study estimates implicit tax rates and investigates the relation between a firm's implicit tax rate and two factors: (1) the pre-tax rate of return, and, (2) the potential market power of the firm, which could provide the opportunity to shift implicit (and explicit) tax burdens from the firm to consumers or labor. The results indicate that implicit taxes are significantly negatively related to the pre-tax rate of return and firm market structure characteristics. The interaction of pre-tax returns and firm market structure characteristics is positively related to implicit taxes, indicating that firm market structure may lead to a weakening of the strict negative relation between implicit taxes and pre-tax returns.

PREFERENSI MAHASISWA DALAM BERWISATA: STUDI KASUS MAHASISWA SEKOLAH TINGGI PARIWISATA AMBARRUKMO (STIPRAM), YOGYAKARTA

2018 ◽  
Vol 12 (01) ◽  
pp. 55-64
Author(s):  
Halim Ahmad ◽  
Bayu Grendo Sigarete
Keyword(s):  
University Students ◽  
Market Structure ◽  
Employment Status ◽  
Student Preferences ◽  
Tourism Management ◽  
Potential Market ◽  
The Future ◽  
The University

Students are one of the important entities in the tourism market structure in Indonesia. Statistics show that the largest portion of tourist market in Indonesia based on employment status is students, where the university students are included in this category. Students potential market is represent the future of tourism market. This fact indicated how importance the knowledge about the student preferences in the tourism management, to create the better plan for capturing more tourists from this segment. Keywords: Tourism market, university students, preferences

Understanding & Serving Readers: The Problem of Fuzzy Market Structure

1993 ◽  
Vol 14 (2) ◽  
pp. 55-67 ◽  
Author(s):  
Stephen Lacy
Keyword(s):  
Market Structure ◽  
Market Structures

Newspapers exist in markets that are difficult to define and serve. Market structures are beyond their control, but not beyond their understanding – and their survival will depend on how well newspapers understand.

scholarly journals Tax Literacy

2018 ◽  
Vol 66 (2) ◽  
pp. 553-559
Author(s):  
Michaela Moučková ◽  
Leoš Vítek
Keyword(s):  
Income Tax ◽  
Response Rate ◽  
Statistical Tests ◽  
Value Added ◽  
Practical Experience ◽  
Personal Income ◽  
Personal Income Tax ◽  
Two Factors ◽  
Tax Returns ◽  
The University

Presented paper focuses on measuring tax literacy among bachelor degree students at the University of Economics, Prague, along with analysis of the two factors that influence it. Based on the 150 collected questionnaires (63 % response rate), we measured tax literacy of students (personal income tax and VAT) and examined whether it depends on (i) previous passing of tax courses and (ii) previous practical experience with filing tax returns. More than half of the students were well to excellently-versed in tax matters, including those who have not completed any more advanced tax courses apart from the elementary tax course. For VAT, the results of statistical tests show that students’ knowledge depends on passing a more advanced course on consumption taxation. On the other hand, the link between experience with tax returns and results of tax literacy tests cannot be unambiguously confirmed or rejected. Within the first statistical test (personal income tax), it was established that students’ knowledge does not depend on previous filing of tax returns; the second test (value added tax) led to the opposite conclusion.

Simulation, Case Studies and Optimization of a Biodiesel Process with a Solid Acid Catalyst

2007 ◽  
Vol 5 (1) ◽  
Author(s):  
Alex H West ◽  
Dusko Posarac ◽  
Naoko Ellis
Keyword(s):  
Case Studies ◽  
Solid Acid ◽  
Solid Acid Catalyst ◽  
Fixed Bed ◽  
Acid Catalyst ◽  
Biodiesel Production ◽  
Fixed Bed Reactor ◽  
Rate Of Return ◽  
Manufacturing Cost ◽  
Tax Rate

A commercial process simulator was used to develop a detailed simulation of a biodiesel production process, and carry out case studies and optimization. The simulated process produced biodiesel from a feedstock containing 5 wt.% free fatty acids in a fixed-bed reactor with sulfated-zirconia as an acidic catalyst. Sized unit operation blocks, material and energy flows were used to conduct an economic assessment of the process. Total capital investment, total manufacturing cost, after tax rate-of-return and production cost ($/kg) were all determined for the process. The process was then optimized by maximizing the after tax rate-of-return (ATROR). Based on our previous work, the most economical process for transesterification of waste vegetable oil at the scale of 8000 metric tones/yr of biodiesel production among the four processes examined was based on a solid acid catalyst reaction. Our results showed that the process is economically feasible, even without government subsidy, while at the same time, the produced biodiesel met the required ASTM standard for purity.

scholarly journals A sensitivity analysis of price formulae

1985 ◽  
Vol 16 (4) ◽  
pp. 181-184
Author(s):  
J. J. Doppegieter ◽  
I. J. Lambrechts
Keyword(s):  
Inflation Rate ◽  
Rate Of Return ◽  
Model Parameters ◽  
Relative Importance ◽  
Internal Rate Of Return ◽  
Short Term ◽  
Tax Rate ◽  
Internal Rate ◽  
Price Formula ◽  
Statutory Tax Rate

This is the last in a series of four articles. In the first article two price formulae were discussed and in the subsequent two articles two methods of analysis were demonstrated. In this article a third method of analysis concerning the sensitivity of some selected model parameters is presented. Four parameters have been selected, i.e. the allowed profitability rate, the inflation rate, the growth rate, and the statutory tax rate. The value of each factor has been increased and decreased by 10% to test the sensitivity of each. In both price formulae the allowed profitability rate has the highest relative importance, followed by the inflation rate. Furthermore, in price formula A some parameters have no or only a small short-term effect on the internal rate of return, e.g. the statutory tax rate. In addition, the internal rate of return of formula A is generally more volatile to changes in the variables analysed than that of formula B. This type of analysis could be very helpful for negotiations between price/tariff-determining bodies and price-controlled undertakings/industries.

scholarly journals The Effective Tax Rate and the Pretax Rate of Return

10.3386/w0740 ◽  
1981 ◽  
Author(s):  
Martin Feldstein ◽  
James Poterba ◽  
Louis Dicks-Mireaux
Keyword(s):  
Rate Of Return ◽  
Effective Tax Rate ◽  
Tax Rate

Distortions Imposed by Inflation on Historical-Cost Depreciation

1983 ◽  
Vol 12 (1) ◽  
pp. 91-98
Author(s):  
Boris E. Bravo-Ureta
Keyword(s):  
Cost Of Capital ◽  
Economic Cost ◽  
Rate Of Return ◽  
Present Value ◽  
Tax Rate ◽  
The Real ◽  
Historical Cost ◽  
Depreciation Methods

The use of historical-cost depreciation in periods of persistent inflation decreases the present value of depreciation deductions, thus understating the true economic cost of capital and increasing the real after-tax rate of return required by potential investors. Efforts to correct these problems by adopting depreciation methods that allow for artificially short recovery periods or accelerated rates do not provide an adequate solution. Distortions imposed by inflation on historical-cost depreciation can be adequately corrected by indexing the historical-cost basis.

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