The Effectiveness of Management Ability on Firm Value and Tax Avoidance

Seifzadeh, Maryam

doi:10.3390/jrfm15110539

Cited by 6 publications

(4 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Researchers agree that management style and managerial ability affects corporate tax avoidance (Akbari et al, 2018a; Seifzadeh, 2022). Using 12‐year period data in Tehran Stock Exchange (TSE) and OTC, Akbari et al (2018b) further shows the significant association of type of market's impact (exchange of OTC) on the relationship between management ability and tax avoidance in the emerging market of Iran.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Local gambling preferences and corporate tax avoidance: Evidence from China

et al. 2023

View full text Add to dashboard Cite

We document the positive effect of local gambling preferences on corporate tax avoidance using province‐level lottery sales data as a proxy for local gambling preferences. This result is robust to a battery of sensitivity tests. Furthermore, the positive effect of local gambling preferences on corporate tax avoidance is weaker (stronger) when firms face stronger (weaker) tax enforcement, have greater (less) institutional ownership, and followed by more (less) analysts. Last, we find that local gambling preferences influence corporate tax avoidance by shaping the risk attitudes of insiders (i.e. controlling shareholders and managers). Overall, we shed light on the real effect of local gambling preferences on corporate tax avoidance behaviour in emerging economies such as China.

show abstract

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Local gambling preferences and corporate tax avoidance: Evidence from China

et al. 2023

View full text Add to dashboard Cite

show abstract

“…In other words, tax avoidance reduces the portion of cash that leaves the company, safeguarding it from taxation authorities. On the other hand, the agency theory perspective underscores positive facets of tax avoidance, such as curbing cash outflows [21].…”

Section: The Effect Of Tax Avoidance On Firm Valuementioning

confidence: 99%

Tax Avoidance and Dividend Policy, with Corporate Governance as Moderating Variable

Sari,

Metalia

2023

Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023,

View full text Add to dashboard Cite

Firm value is very important, it reflects the company's performance and can affect investors' perception of the company value. In its development, firm value can be influenced through the application of financial management functions such as tax avoidance and dividend policy. This study aims to examine the factors that can affect firm value by using the literature review method. Corporate governance is used as a moderating variable and a limitation in this study. In previous theoretical studies, it has been shown that firm value can be influenced by tax avoidance and dividend policy. Based on the discussion of relevant theories and previous research, it can be concluded that tax avoidance affects firm value and dividend policy affects firm value. Moderating corporate governance variables can moderate the effects of tax avoidance and dividend policy on firm value.

show abstract

“…Cash tax savings form the major benefit of tax avoidance, and existing evidence indicates that firms with efficient managers employ tax savings more effectively and in the best interests of shareholders (Garg et al, 2022;Salehi et al, 2022). For instance, Akbari et al (2018) and Seifzadeh (2022) find that managerial ability promotes tax management and has a favorable impact on firm value. Alternately, managers may also alter the capital structure to lower the explicit tax burden through interest tax shields (Salehi and Salami, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…For instance, Akbari et al . (2018) and Seifzadeh (2022) find that managerial ability promotes tax management and has a favorable impact on firm value. Alternately, managers may also alter the capital structure to lower the explicit tax burden through interest tax shields (Salehi and Salami, 2020).…”

Section: Introductionmentioning

confidence: 99%

Geopolitical risk and corporate tax behavior: international evidence

Ramesh

2023

IJMF

View full text Add to dashboard Cite

PurposeThis study examines the association between geopolitical risk (GPR) and corporate tax, which is a major source of revenue for the government and a significant explicit cost for firms. The authors use a comprehensive measure of GPR to study its effects on corporate taxes by using an international sample.Design/methodology/approachThe authors adopt the geopolitical measure constructed by Caldara and Iacoviello (2022) as a proxy for GPR and cash-effective tax rate benchmarked with statutory tax rate to measure corporate tax avoidance. The authors employ panel regression with fixed effects (FEs) to investigate the impact of GPR on corporate tax avoidance. The authors also conduct a battery of robustness tests to ensure the strength of the study’s results.FindingsThis study’s empirical results indicate that sample firms increase their tax avoidance amid increasing GPR. Further analyses show that financial constraints incentivize firms to avoid taxes during rising geopolitical tensions. The authors also provide evidence on the role of firm-level and country-level governance in weakening the association between GPR and tax avoidance.Practical implicationsPolicymakers and governments may strengthen the enforcement rule to limit aggressive tax practices of corporates during GPR to balance fiscal deficit. In addition, this study sheds light on the debate among administrators and politicians over the efficacy of current tax laws and governance structures in the presence of heightened GPR.Originality/valueThe authors extend the literature on GPR by analyzing its effect on corporate tax avoidance. Unlike existing single-country studies, the authors use a cross-country setup to investigate the impact of GPR on tax avoidance, making this study’s results more generalizable as the authors control for a host of country, industry, and time factors. Apart from political uncertainty, terrorism, and climatic issues, the authors document GPR as a strong macroeconomic driver of corporate tax avoidance. The authors make a new contribution to the literature on the moderating role of governance and institutional factors on the association between tax avoidance and GPR in an international context. The authors also contribute to the literature on macroeconomic determinants of tax avoidance.

show abstract

The Effectiveness of Management Ability on Firm Value and Tax Avoidance

Cited by 6 publications

References 52 publications

Local gambling preferences and corporate tax avoidance: Evidence from China

Local gambling preferences and corporate tax avoidance: Evidence from China

Tax Avoidance and Dividend Policy, with Corporate Governance as Moderating Variable

Geopolitical risk and corporate tax behavior: international evidence

Contact Info

Product

Resources

About