An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange
The matter of fiscal pressure is more current than ever in most countries around the world for various reasons. In the first place, disruptive phenomena such as financial crises put tremendous pressure on worldwide economies. Secondly, high taxes trigger an overall reduction in the level of investme...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-03-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/9/6/630 |
| _version_ | 1797541197733953536 |
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| author | Larissa Batrancea |
| author_facet | Larissa Batrancea |
| author_sort | Larissa Batrancea |
| collection | DOAJ |
| description | The matter of fiscal pressure is more current than ever in most countries around the world for various reasons. In the first place, disruptive phenomena such as financial crises put tremendous pressure on worldwide economies. Secondly, high taxes trigger an overall reduction in the level of investments aiming at creating stable and well-paid jobs. Thirdly, the income generated by the majority of taxpayers is subject to excessive taxation, which may fuel tax evasion acts. On these grounds, the article is the first empirical research investigating the impact of fiscal pressure on the financial equilibrium of energy companies listed on the New York Stock Exchange. The sample included 88 electricity, gas, and oil companies from around the world, which were analyzed over a time span of 16 years, including the periods before, during, and after the 2008 global financial crisis. The methodology entailed estimating econometric models via Panel Least Squares (cross-section weights) with and without time fixed effects. Empirical results showed that fiscal pressure had a stronger impact on the short-term and long-term equilibrium of electricity and oil companies than on the equilibrium of gas companies. The study can serve as a compass for the managers of energy companies interested in estimating the evolution of company equilibrium state when considering other potential financial downturns. |
| first_indexed | 2024-03-10T13:11:50Z |
| format | Article |
| id | doaj.art-a68c78d5113045e9bc3b778dc8f1bc94 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T13:11:50Z |
| publishDate | 2021-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-a68c78d5113045e9bc3b778dc8f1bc942023-11-21T10:41:31ZengMDPI AGMathematics2227-73902021-03-019663010.3390/math9060630An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock ExchangeLarissa Batrancea0Faculty of Business, Babes-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, RomaniaThe matter of fiscal pressure is more current than ever in most countries around the world for various reasons. In the first place, disruptive phenomena such as financial crises put tremendous pressure on worldwide economies. Secondly, high taxes trigger an overall reduction in the level of investments aiming at creating stable and well-paid jobs. Thirdly, the income generated by the majority of taxpayers is subject to excessive taxation, which may fuel tax evasion acts. On these grounds, the article is the first empirical research investigating the impact of fiscal pressure on the financial equilibrium of energy companies listed on the New York Stock Exchange. The sample included 88 electricity, gas, and oil companies from around the world, which were analyzed over a time span of 16 years, including the periods before, during, and after the 2008 global financial crisis. The methodology entailed estimating econometric models via Panel Least Squares (cross-section weights) with and without time fixed effects. Empirical results showed that fiscal pressure had a stronger impact on the short-term and long-term equilibrium of electricity and oil companies than on the equilibrium of gas companies. The study can serve as a compass for the managers of energy companies interested in estimating the evolution of company equilibrium state when considering other potential financial downturns.https://www.mdpi.com/2227-7390/9/6/630fiscal pressureequityassetstaxcompliance |
| spellingShingle | Larissa Batrancea An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange Mathematics fiscal pressure equity assets tax compliance |
| title | An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange |
| title_full | An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange |
| title_fullStr | An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange |
| title_full_unstemmed | An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange |
| title_short | An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange |
| title_sort | econometric approach regarding the impact of fiscal pressure on equilibrium evidence from electricity gas and oil companies listed on the new york stock exchange |
| topic | fiscal pressure equity assets tax compliance |
| url | https://www.mdpi.com/2227-7390/9/6/630 |
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