The effect of the interplay between corporate governance and external monitoring regimes on firms' tax avoidance

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

“…In summary, the empirical evidence suggests that tax avoidance is negatively associated with firm performance because it complicates the organizational operations, and facilitates managerial opportunism and agency slack. However, in the presence of proper governance mechanisms, agency conflicts and managerial opportunism are curbed, thus helping firms to benefit more from tax avoidance (Desai & Dharmapala, 2009;Jimenez-Angueira, 2018;Kim et al, 2011). In line with previous literature, we establish the following hypothesis: Hypothesis: Corporate tax avoidance is negatively related to firm performance.…”

“…Interestingly, the link between tax avoidance and firm value has been under-researched, especially in the context of developing countries. Furthermore, current empirical evidence on the relationship is inconclusive, even though the mainstream findings suggest that well-governed firms should benefit more from tax sheltering (Desai & Dharmapala, 2009;Jimenez-Angueira, 2018;Kim et al, 2011). In the present study, we examine the effects of tax avoidance on firm performance in Vietnam, a developing economy.…”

Effective Tax Rate in V4 Countries and Serbia - Sectoral Approach

“…• LNA -Company size can be measured in many ways. A standard measure of company size applicable to companies listed on regulated capital markets and private companies is a measure based on the size of the balance sheet total (Lazar, 2014, Jiménez-Angueira, 2018.…”

Special Issue

“…Growth also has significant influence on how tax management is applied (Leung et al, 2019;Tang, 2016). The fourth control variable we use is intangible asset, following Gallemore and Labro (2015), Jiménez-angueira (2018), andLismont et al (2018). Last, we control for a firm's capital intensity (Chan et al, 2013;Wegener and Labelle, 2017).…”