The Czech evidence for the explanatory power of formula factors on profitability

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F15%3A43908507" target="_blank" >RIV/62156489:43110/15:43908507 - isvavai.cz</a>
Result on the web
<a href="http://www.ekf.vsb.cz/export/sites/ekf/cerei/cs/cisla/vol18num3/dokumenty/VOL18NUM03PAP03_1.pdf" target="_blank" >http://www.ekf.vsb.cz/export/sites/ekf/cerei/cs/cisla/vol18num3/dokumenty/VOL18NUM03PAP03_1.pdf</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Czech evidence for the explanatory power of formula factors on profitability
Original language description
The allocation formula for the distribution of the Common Consolidated Corporate Tax Base (CCCTB) should include the three equally weighted formula factors that are considered to have the largest impact on the generation of profit/loss. The objective ofthe paper is to analyse the explanatory power of the proposed formula factors from the perspective of Czech independent enterprises. The analysis is based on the comparison of coefficients of determination as the indicators of explained variability of aregression model. The paper concludes that the proposed formula factors, as defined by the CCCTB Draft Directive, are able to explain almost 35% of the variance in profit/loss but also indicates that the other balance sheet items can have a higher explanatory power.
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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