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Using a meta-regression analysis, we quantitatively review the empirical literature on the relation between effective tax rate (ETR) and firm size. Accounting literature offers two competing theories on this relation: The political cost theory, suggesting a positive size-ETR relation, and the political power theory, suggesting a negative size-ETR relation. Using a unique data set of 56 studies that do not show a clear tendency towards either of the two theories, we contribute to the discussion on the size-ETR relation in three ways: First, applying meta-regression analysis on a US meta-data set, we provide evidence supporting the political cost theory. Second, our analysis reveals factors that are possible sources of variation and bias in previous empirical studies; these findings can improve future empirical and analytical models. Third, we extend our analysis to a cross-country meta-data set; this extension enables us to investigate explanations for the two competing theories in more detail. We find that Hofstede’s cultural dimensions theory, a transparency index and a corruption index explain variation in the size-ETR relation. Independent of the two theories, we also find that tax planning aspects potentially affect the size-ETR relation. To our knowledge, these explanations have not yet been investigated in our research context.

The Vocational Rehabilitation (VR) Service System was created in 1973 in the United States as a way to help people with disabilities access necessary supports and services to return to work and live independently. The program receives federal funds and operates in all 50 states and territories. The program is designed to allow consumers to develop a rehabilitation plan in collaboration with a VR counselor and receive necessary services and supports in order to meet their rehabilitation goals. Unfortunately, there are serious issues with access to services and rehabilitation success for minority individuals in the program, particularly African Americans. The chapter will first provide a brief overview of the Rehabilitation Act and its purpose, then we will introduce some of the research that has been conducted to evaluate the program over the years, with particular emphasis on the outcomes for African Americans, and then will focus on a series of studies that have been conducted by the authors in the state of Illinois. The chapter will conclude with some suggestions about ways in which the system could be improved and ways to empower African Americans in pursue of their rehabilitation and independent living goals, including peer-support and supported employment.