1. Miscellaneous
Download icon

On the Italian ACE and its impact on enterprise performance: A PLS-path modeling analysis

  1. Simona Balzano
  2. Filippo Oropallo
  3. Valentino Parisi  Is a corresponding author
  1. University of Cassino, Department of Economics, Italy
  2. ISTAT, Italy
Research article
Volume 4(2) Autumn 2011
Cite this article as: S. Balzano, F. Oropallo, V. Parisi; 2011; On the Italian ACE and its impact on enterprise performance: A PLS-path modeling analysis; International Journal of Microsimulation; 4(2); 14-26. doi: 10.34196/ijm.00050
4 figures and 6 tables

Figures

Figure 1
Download asset Open asset
The causal model for performance estimation.

Legend: OS = Operating surplus, VADD = Value added, INV-TA = Investments (tangible assets), INV-IA = Investments (intangible assets), EXP = Turnover from exports

Figure 2
Download asset Open asset
The structure of the corporate tax microsimulation model.
Figure 3
Download asset Open asset
Changes in the implicit corporate tax rates due to the DIT system. Years 1998–2000.

Source: Authors’ computations

Figure 4
Download asset Open asset
Debt-ratio (financial debts/net assets); years 1999–2001.

Source: authors’ computations on ISTAT data The average debt-ratio fell by 1.4 percentage points in the period 1999–2001, and this suggests a significant effect of the DIT mechanism on firms’ capitalisation3.

Tables

Table 1
Number of companies present in the database by business sector; years 1998–2001.
1998 1999 2000 2001
Business sector LE LE SME LE SME LE SME
Mining, manufacturing 4,779 4,763 5,566 4,456 7,196 4,967 9,648
Electricity 102 99 254 74 245 122 257
Construction 322 328 430 299 705 336 708
Wholesale and retail 703 744 2,704 711 3,243 923 3,606
Hotels, transport, real estate 1,814 1,997 3,737 1,907 5,208 2,313 5,105
Education, health, social services 557 578 1,352 562 1,590 709 1,770
Total 8,277 8,509 14,043 8,009 18,187 9,370 21,094

  1. Source: ISTAT.

    Legend: LE: Large Enterprise; SME: small and medium-sized enterprises.

Table 2
Simulated number of companies in the dataset eligible to the DIT allowance. Years 1998–2000.
1998 1999 2000
Number % Number % Number %
Large firms 3,070 37 3,692 43 4,405 55
Total 8,277 100 8,509 100 8,009 100
Small and medium sized firms 4,217 30 9,772 54
Total 14,043 100 18,187 100

  1. Source: Authors’ computations

Table 3
Regression analysis: average performance (years 1999, 2000, 2001) of companies not benefiting (DIT=0), benefiting (DIT=1) from DIT in the previous year. Large firms.
1999 2000 2001
Value t Pr>| t | Value t Pr>| t | Value T Pr>| t |
< <
Intercept 0.000 474.755 0,0001 0.000 201.248 0,0001 0.000 167.450 < 0,0001
< <
DIT=0 8.083 376.577 0.0001 5.164 188.882 0.0001 3.235 57.039 < 0.0001
< <
DIT=1 8.147 474.755 0.0001 5.234 201.248 0.0001 3.183 167.450 < 0.0001
Table 4
Regression analysis: average performance (years 2000, 2001) of companies not benefiting (DIT=0), benefiting (DIT=1) from DIT in the previous year. Small and medium sized firms.
2000 2001
Value t Pr>| t | Value T Pr>| t |
Intercept 0.000 946.448 < 0.0001 0.000 912.961 < 0.0001
DIT=0 8.356 634.464 < 0.0001 8.468 351.932 < 0.0001
DIT=1 8.827 946.448 < 0.0001 8.507 912.961 < 0.0001

  1. Source: Authors’ computations

Table A1
Weight of performance factors; 1998–2001.
Large firms Small and medium sized firms
1998 1999 2000 2001 1999 2000 2001
PERFORMANCE Operating surplus 0.831 0.823 0.829 0.847 0.750 0.742 0.884
Value added 0.936 0.901 0.882 0.879 0.825 0.781 0.895
Investments (tangible assets) 0.936 0.961 0.902 0.881 0.381 0.339 0.325
Investments (intangible assets) 0.213 0.716 0.574 0.473 0.385 0.341 0.326
Turnover from exports 0.399 0.346 0.444 0.474 0.592 0.573 0.415

  1. Source: Authors’ computations.

Table A2
Enterprise performance (standardized values) by business sector, firm size; years 1999, 200, 2001.
1999 2000 2001 N % (2001)
Business sector
Mining, manufacturing 0.263 0.200 −0.071 47.97
Electricity 0.229 0.242 2.076 1.24
Construction −0.114 −0.082 −0.651 3.43
Wholesale and retail −0.029 −0.011 0,372 14.87
Hotels, transport, real estate −0.073 −0.071 −0.227 24.35
Education, health, social services −0.125 −0.075 0,174 8,14
Firm size (number of employees)
1-19 −0.097 −0.078 1.424 39.33
20-49 0.613 0.437 1.839 16.57
50-99 1.886 1.339 2.006 16.68
100-249 0.111 0.053 −3.838 18.42
250-499 −0.035 −0.029 −3.712 5.45
500-999 0.105 0.314 −3.492 2,08
more than 999 1.710 1.958 −1.610 1.47

  1. Source: Authors’ computations.

Download links

A two-part list of links to download the article, or parts of the article, in various formats.

Downloads (link to download the article as PDF)

Download citations (links to download the citations from this article in formats compatible with various reference manager tools)

Open citations (links to open the citations from this article in various online reference manager services)