O EFEITO DA GOVERNANÇA TRIBUTÁRIA SOBRE O CUSTO DE CAPITAL DAS EMPRESAS BRASILEIRAS (The Effect of Tax Governance on the Cost of Capital of Brazilian Companies)

Moreira, Caritsa Scartaty; Silva, Maurí­cio Corrêa da

doi:10.2139/ssrn.3540164

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“…Confronted with the findings of Moreira and Silva (2019), it is observed that the authors did not find a relation between the equity cost in relation to the ETR, but in relation to the variable CashETR, also used as a tax management metric, the statistical significance was 1%, thus showing, according to the results, the strong influence of tax management on the equity cost.…”

Section: Results and Analysismentioning

confidence: 77%

“…The findings showed that creditors analyze the level of tax planning of companies to assess the cost of debt. Moreira and Silva (2019) sought to analyze the effect of Tax Governance on the equity cost capital of Brazilian companies, using Effective Tax Rate (ETR), the Long-Run Cash (CashETR) and multiple pooled regression as a tool to sustain your results. The study found a significant influence between the reduction of the tax burden, through good management, and the decision of investors on where to apply the resources.…”

Section: Previous Studiesmentioning

confidence: 99%

“…Table 3 shows the composition of the variables that were used in the econometric model, and indicates, respectively, the CAPM as the variable related to the equity cost (dependent variable), the BTD as the tax management variable (independent and interest variable), and ROE, Q-TOBIN, LNAT, and ALV as the control variables. Moreira and Silva (2019).…”

Section: Measurement Of Variables and Model Estimationmentioning

confidence: 99%

“…However, these studies did not analyze the effect of tax management on the equity cost in Brazilian companies using the Book-Tax Differences (BTD) indicator as a tool for identifying tax management and its influence on the cost of capital for a period of five years. Thus, based on tax governance relevance and the equity cost, this research will follow the recommendation suggested by Moreira and Silva (2019), and will analyze this cost with another indicator, in this case, Book-Tax Differences (BTD).…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, the theme choice was motivated by two studies: Martinez and Silva's (2017), who recommended using other metrics and different costs in the relationship of fiscal aggressiveness with corporate debt, and Moreira and Silva's (2019) that recommended the use of other metrics to identify the relationship between tax governance and the equity cost, such as the Book-Tax Differences (BTD).…”

Section: Introductionmentioning

confidence: 99%

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Tax management: analysis of the influence on the equity cost of Brazilian companies

et al. 2021

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Purpose: The present study sought to investigate whether tax management influences the equity cost of Brazilian companies listed in Brazil, Bolsa e Balcão (B3) from 2014 to 2018. Methodology: The study included the analysis of Proxie Book-Tax Differences (BTD) as a tool for identifying tax management, as suggested in the work of Moreira e Silva (2019), as well as the control variables, which are the return on equity (ROE), market value (QTOBIN), company size (LNAT) and company financial leverage (ALV). For data collection, the Bloomberg® database and the Reference Form available on the B3 website were used. For that, it was used the Multiple Linear Regression of the data type in balanced panel, resulting in a final sample formed by 630 observations. Results: Through BTD proxie, referring to the difference between accounting profit and tax profit, and used to capture tax management in this research, it was not possible to identify any relationship with the equity cost. Thus, for the purposes of this research, the theoretical adequacy and the statistical models used did not show that good tax management practices have a positive or negative effect on the equity cost. Contributions of the Study: It is observed that Brazilian studies did not analyze the effect of tax management on the equity cost in Brazilian companies using the Book-Tax Differences (BTD) indicator as a tool for identifying tax management and its influence on the cost of capital. So, this research followed the recommendation suggested by Moreira e Silva (2019), to analyze this cost with another indicator, in this case, Book-Tax Differences (BTD). According to the results, it was not possible to identify any relationship with the equity cost, thus contributing to the consolidation of the findings by Goh et al. (2016) and Moreira e Silva (2019) who present CashETR as the best metric for tax management, given that the results presented using the variables ETR and BTD, demonstrated that the cost of capital required by investors was unrelated to the fiscal aggressiveness of companies.

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Section: Results and Analysismentioning

confidence: 77%

Section: Previous Studiesmentioning

confidence: 99%

Section: Measurement Of Variables and Model Estimationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations