An Empirical Examination of Corporate Effective Tax Rates Using Data Analytics: Evaluation of Firm-Level and Industry-Level ETR Trends

• In Event: Accounting Education

Abstract

Tomorrow’s tax professionals need to understand both tax and data analytics. To meet this challenge, we develop a case that combines an important area of tax accounting, effective tax rates, with multiple data analytics skills. We use software programs and data that is accessible. The learning objectives of the case are to: (1) Increase students understanding of the importance of effective tax rates; (2) Identify economic, industry, and firm level factors that might affect effective tax rates; (3) Improve students’ Excel skills, including pivot tables; (4) Enhance students ability to use Tableau to create data visualizations; (5) Enhance students understanding of regression analysis using Alteryx; and (6) Enhance students understanding of how to develop effective oral and written communications regarding their findings. We evaluate the case efficacy using data from pre- and post-learning assessment surveys and open-ended responses. The survey responses indicate that the comprehensive case meets these learning objectives.

Authors

• Christine Cheng, The University of Mississippi

• Pradeep Sapkota, Louisiana State University

• Amy J. N. Yurko, Duquesne University