An empirical analysis of factors influencing effective tax rates of high-tech enterprises in China

In this paper, we analyzed the factors influencing effective tax rates (ETR) of China´s high-tech enterprises through theoretical analysis. Then based on data characters of high-tech enterprises of China´s A-share listed companies, we selected 331 samples from 2009 to 2011 for empirical analysis. We established the model of multiple linear regression by using descriptive statistics and regression method for empirical research. The results showed that value-added tax burden, capital structure, density of intangible assets, investment in research and development had significant negative correlation with ETR. While profitability, equity structure, earnings management level and enterprise property had significant positive correlation with ETR. The density of fixed assets and the proportion of researchers negatively correlate with ETR, but they failed the test of significance. Finally, according to the empirical results, we put forward some suggestions.