Table A.1: A Summary of the Literature on Effective Tax Rates and Firm Size

|**(1)**|**(2)**|**(3)**|**(4)**|**(5)**|**(6)**|**(7)**|
|---|---|---|---|---|---|---|
|**Reference**|**Data**|**Country**|**Numerator**|**Denominator**|**Firm Size Measure**|**ETR & Firm Size**|
|Yuzhu et al.(2022)|US|Financial data|Cash taxes paid|Pre-tax income|Total asset|Negative|
|Gaertner et al.(2021)|US|Financial data|Cash taxes paid|Pre-tax income|Total asset|Negative|
|Bach et al.(2019)|France|Tax return data|Tax expenses|Net proft|Turnover<br>Number of employees|Negative|
|Laz ̆ar(2014)|Financial data|Romania|Income tax expense|Net proft<br>Turnover|Total assets|No relationship|
|Wu et al.(2012)|Financial data|China|Tax expenses|Net proft|Total assets|Positive|
|Guha(2007)|Financial data|India|Income tax expense|Net income|Total assets|Negative|
|Richardson and Lanis(2007)|Financial data|Australia|Income tax expense|Net proft<br>Turnover|Total assets|Negative|
|Adhikari et al.(2006)|Financial data|Malaysia|Tax expenses|Operating income<br>Turnover|Total assets|Negative|
|Janssen(2005)|Financial data|The Netherlands|Tax expenses|Operating income<br>Turnover|Total assets|Negative|
|Rego(2003)|US|Financial data|Income tax|Pre-tax income|Turnover|Negative|
|Nicod`eme(2002)|Financial data|OECD|Tax expenses|Net income|Turnover<br>Capital<br>Total assets|Negative|
|Kim and Limpaphayom(1998)|Financial data|Hong Kong<br>Korea<br>Malaysia<br>Taiwan|Income tax liability|Gross profts<br>Net income|Turnover|Negative|
|||Thailand|||||
|Gupta and Newberry(1997)|Financial data|USA|Income tax expense|Net income<br>Turnover|Total assets|No relationship|
|Kern and Morris(1992)|Financial data|USA|Income tax expense|Net income<br>Gross profts|Turnover|No relationship|
|Wang(1991)|Financial data|USA|Tax expenses|Net income<br>Gross profts|Turnover<br>Total assets|Positive|
|Porcano(1986)|Financial data|USA|Income tax expense|<br>Net income||Negative|
|Zimmerman(1983)|Financial data|USA|Tax expenses|Gross profts|Turnover|Positive|
|Stickney and McGee(1982)|Financial data|USA|Tax expenses|Net income|Turnover<br>Total assets|No relationship|
|Gauthier and Reinikka(2006)|Survey data|Uganda|Tax expenses|Turnover|Number of employees|Inverse U-shape|
|Gauthier and Gersovitz(1997)|Survey data|Cameroon|Tax expenses|Turnover|Number of employees|Inverse U-shape|
|Mascagni and Mengistu(2019)|Tax return data|Ethiopia|Income tax expense|Gross profts|Turnover|U-shape|
|Carreras et al.(2017)|Tax return data|South Africa|Tax expenses|Gross profts|Turnover|U-shape|
|Mascagni et al.(2016)|Tax return data|Rwanda|<br>Income tax expense|<br>Gross profts|Turnover|Negative|
|<br>Halleux and Valenduc(2007)|Tax return data<br>Financial data|Belgium|<br>Income tax expense|<br>Net income|Total assets<br>Value added<br>Number of employees|Depends on size measure|
|Clark(2004)|Tax return data|Canada<br>Belgium|Income tax liability|Gross profts<br>Net income|Total assets<br>Gross taxable income|Inverse U-Shape|

Note: This table summarizes the key papers studying the relationship between effective tax rates and firm size. We do not include papers that estimate effective tax rates but do not relate them to firm size. The denominators used to estimate effective tax rates in the original studies were relabeled to match one of the four concepts used in this paper: net profit (our preferred measure), operating profit, gross profit, and revenue. This table is discussed in Section 1.1.