Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective

Chen, Kuo‐Shing; Tsai, Huolien

doi:10.1080/23311975.2018.1526362

Cited by 5 publications

(4 citation statements)

References 43 publications

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“…Corporate tax contributes to economic development and this is an aspect of corporate social responsibility; nonetheless, firms could avoid tax to retain extra profits (Chen & Tsai, 2018;OECD, 2013). Practically, corporate tax avoidance enhances shareholder's wealth and plays a significant role as a corporate strategy, especially for large firms (Armstrong et al, 2015;Desai & Dharmapala, 2009;Hanlon & Heitzman, 2010;Wilson, 2009).…”

Section: Introductionmentioning

confidence: 99%

Does corporate tax avoidance explain firm performance? Evidence from an emerging economy

Khương

Liêm

Thu

et al. 2020

Cogent Business & Management

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Corporate tax avoidance is an act aiming at reducing tax amount liable to the government, which is expected to raise firm value. However, agency theory postulates that opportunistic managers can lower tax liabilities through the arrangement of complex transactions, enabling them to shirk or pursue own interests. Therefore, the need to examine the link between corporate tax avoidance and firm performance is evident, yet there has not been any research on this in the context of Vietnam, a country plagued with tax-avoiding cases. We are the first to examine the empirical link using a sample of Vietnamese listed firms over the period from 2010 to 2016, using a wide-ranging set of performance and taxsheltering indicators. Overall, the results indicate a mixed relationship between corporate tax avoidance and firm performance in Vietnam.

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Section: Introductionmentioning

confidence: 99%

Does corporate tax avoidance explain firm performance? Evidence from an emerging economy

Khương

Liêm

Thu

et al. 2020

Cogent Business & Management

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“…The bottom-line performance is very much related to the taxes, and it directly affects the shareholder's and investors' wealth. Therefore, firm uses CTA strategies to retain the amount that the firm needs to pay to the government (Chen & Tsai, 2018;OECD, 2013). CTA is part of organizational strategy, especially in large organizations (Armstrong et al, 2015;Wang et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Nexus of Tax Avoidance and Firm Value in Pakistan: Moderating Role of Board Independence

Butt¹

2022

NIJBM

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The aim of the current study is to investigate the impact of tax avoidance on firm value, further; this study also tests the moderating role of board independence in context of the association between tax avoidance and firm value. Literature provides inconclusive evidence in this regard and posits high dependence on contextual settings. This study extends literature by providing evidence from Pakistan and also reveals that tax avoidance and firm value relationship is highly dependent on board independence (CG). The agency theory suggests a negative association between tax avoidance and firm value, but a strong corporate governance mechanism mitigates this negative impact. Pakistan provides ideal context to study the nexus between tax avoidance and firm value, since the country has been facing large budget deficit and a low tax collection level. Therefore, it is important to investigate this relationship. This study is conducted using a sample of non-financial firms listed at Pakistan stock exchange (PSX) from 2005 to 2019.The System-GMM approach is used to test the hypothesis since System-GMM has the tendency to tackle the endogeneity problem that surfaces due to dynamic panel and reverses causality. The findings suggest that tax avoidance negatively impacts the market valuation of the firms. We further find that board independence moderates the relationship by mitigating the negative impact of tax avoidance. These findings are consistent with the agency theory. This study contributes to literature by providing evidence from Pakistan. It is the first study in Pakistan that utilizes three different proxies of tax avoidance to check its impact on firm value while using board independence as a moderating variable.

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“…Tax evasion is a serious problem in many countries. Tax evasion is defined as an attempt to reduce tax payment in violation of the law (Chen & Tsai, 2018;Franzoni, 1998). This act causes a loss of state revenue from the tax sector (Mazur et al, 2007).…”

Section: Introductionmentioning

confidence: 99%

National culture as a moderator between social norms, religiosity, and tax evasion: Meta-analysis study

Sutrisno

Dularif

2020

Cogent Business & Management

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The objective of this research is to present the meta-analysis results of the relationship of social norms and religiosity with tax evasion, with national culture as a moderating variable. Previous researches show mixed results of the relationship between social norms, religiosity, and tax evasion. Meta-analysis is considered a way out of saturated and inconsistent research since it provides an efficient and systematic approach to make a robust conclusion. This research synthesizes 54 results of 14 individual articles published from 1989 to 2017. This study shows three main findings. Although social norms are not effective to fight tax evasion, religiosity is a useful instrument to decrease tax evasion. Theoretically, national culture plays a pivotal role as a variable to moderate social norms with tax

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Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective

Cited by 5 publications

References 43 publications

Does corporate tax avoidance explain firm performance? Evidence from an emerging economy

Does corporate tax avoidance explain firm performance? Evidence from an emerging economy

Nexus of Tax Avoidance and Firm Value in Pakistan: Moderating Role of Board Independence

National culture as a moderator between social norms, religiosity, and tax evasion: Meta-analysis study

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