Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period
Taxation exerts pressure on the economic activities of all companies, including economic entities that operate in the energy industry. This study examined the degree to which fiscal pressure influenced the financial performance of 88 publicly listed companies from the energy industry during a time f...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-06-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/13/3769 |
| _version_ | 1797529044112113664 |
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| author | Larissa Batrancea Mircea Iosif Rus Ema Speranta Masca Ioan Dan Morar |
| author_facet | Larissa Batrancea Mircea Iosif Rus Ema Speranta Masca Ioan Dan Morar |
| author_sort | Larissa Batrancea |
| collection | DOAJ |
| description | Taxation exerts pressure on the economic activities of all companies, including economic entities that operate in the energy industry. This study examined the degree to which fiscal pressure influenced the financial performance of 88 publicly listed companies from the energy industry during a time frame of 16 years (2005Q1–2020Q3). By modelling financial data from the oil, gas and electricity sectors with panel data techniques, our results showed that fiscal pressure had a significant effect on the evolution of company financial performance measured by return on assets, return on equity and return on investment. The study revealed that fiscal pressure had a more positive impact on the financial performance of energy companies than a negative impact. This conclusion is important for overall taxation in the energy industry since corporate taxes, excise duties and mandatory labor contributions are basic resources for state budgets. Our empirical results imply important research directions on the prospect of analyzing company performance. |
| first_indexed | 2024-03-10T10:07:53Z |
| format | Article |
| id | doaj.art-ce8db83617174ec1a06fe626596a2afe |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T10:07:53Z |
| publishDate | 2021-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-ce8db83617174ec1a06fe626596a2afe2023-11-22T01:25:51ZengMDPI AGEnergies1996-10732021-06-011413376910.3390/en14133769Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year PeriodLarissa Batrancea0Mircea Iosif Rus1Ema Speranta Masca2Ioan Dan Morar3Faculty of Business, Babes-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, RomaniaNational Institute for Research and Development in Constructions, Urbanism and Sustainable Spatial Development “URBAN INCERC”, 117 Calea Floresti, 400524 Cluj-Napoca, RomaniaFaculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Targu Mures, 38 Gheorghe Marinescu Street, 540566 Targu Mures, RomaniaFaculty of Economic Sciences, University of Oradea, 1 Universitatii Street, 410087 Oradea, RomaniaTaxation exerts pressure on the economic activities of all companies, including economic entities that operate in the energy industry. This study examined the degree to which fiscal pressure influenced the financial performance of 88 publicly listed companies from the energy industry during a time frame of 16 years (2005Q1–2020Q3). By modelling financial data from the oil, gas and electricity sectors with panel data techniques, our results showed that fiscal pressure had a significant effect on the evolution of company financial performance measured by return on assets, return on equity and return on investment. The study revealed that fiscal pressure had a more positive impact on the financial performance of energy companies than a negative impact. This conclusion is important for overall taxation in the energy industry since corporate taxes, excise duties and mandatory labor contributions are basic resources for state budgets. Our empirical results imply important research directions on the prospect of analyzing company performance.https://www.mdpi.com/1996-1073/14/13/3769fiscal pressurefinancial performanceenergy industry |
| spellingShingle | Larissa Batrancea Mircea Iosif Rus Ema Speranta Masca Ioan Dan Morar Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period Energies fiscal pressure financial performance energy industry |
| title | Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period |
| title_full | Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period |
| title_fullStr | Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period |
| title_full_unstemmed | Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period |
| title_short | Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period |
| title_sort | fiscal pressure as a trigger of financial performance for the energy industry an empirical investigation across a 16 year period |
| topic | fiscal pressure financial performance energy industry |
| url | https://www.mdpi.com/1996-1073/14/13/3769 |
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