Corporate Tax Avoidance and Firm Diversification: Evidence from Chinese Listed Firms

2021 ◽  
Author(s):  
Zhigang Qin ◽  
Wen Liu ◽  
Maonan Chen
Keyword(s):  
Tax Avoidance ◽  
Corporate Tax ◽  
Listed Firms ◽  
Firm Diversification

Corporate dispersion and tax avoidance

2019 ◽  
Vol 13 (3) ◽  
pp. 706-732 ◽  
Author(s):  
Kun Su ◽  
Bin Li ◽  
Chen Ma
Keyword(s):  
Internal Control ◽  
Chief Executive Officers ◽  
Tax Avoidance ◽  
Chief Executive ◽  
Corporate Tax ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Executive Officers ◽  
The Impact

Purpose The purpose of this paper is to investigate the effects of corporate dispersion on tax avoidance from geographical and institutional dispersion perspectives by using evidence from China. Design/methodology/approach Using a panel data of Chinese listed firms during 2003-2015, this paper estimates with correlation analysis and multiple regression analysis. Findings Both geographical and institutional dispersion are negatively associated with the degree of corporate tax avoidance. Furthermore, corporate governance mechanisms and female chief executive officers can mitigate the negative relation between corporate dispersion and tax avoidance. The results also indicate that ineffective internal control is one of the channels through which corporate dispersion reduces tax avoidance. Originality/value This is the first paper about the impact of firm dispersion on the degree of tax avoidance, complementing the research content of diversification and corporate decision-making.

scholarly journals DO FIRMS FACING INCREASES IN FINANCIAL CONSTRAINTS TEND TO GENERATE CASH THROUGH TAX AVOIDANCE? EMPIRICAL EVIDENCE FROM INDONESIA PUBLICLY LISTED FIRMS

Scientax ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 232-247
Author(s):  
John Erhan Prasetyo Hermawan ◽  
Riko Riandoko
Keyword(s):  
Firm Value ◽  
Financial Constraints ◽  
Global Financial Crisis ◽  
Tax Avoidance ◽  
Corporate Image ◽  
Avoidance Behaviour ◽  
Regression Result ◽  
Corporate Tax ◽  
Listed Firms ◽  
The Impact

This study examines the effect of increases in financial constraints measured at both firm-specific and macroeconomic level on corporate tax avoidance behaviour. Based on a hand-collected sample of 60 publicly listed firms on Indonesia Stock Exchange (IDX) from the year 2009 to 2016, our regression result shows that firms facing increased firm-specific constraints exhibit lower cash effective tax rates ranging from 0.55 to 9.57 percent which equate to between 0.60 and 10.29 percent of operating cash flows, whereas at macroeconomic constraints do not. The firm-specific constraints result is consistent with our hypothesis and Edwards, et al. (2016), whereas macroeconomic constraints result is inconsistent. Nevertheless, its inconsistency can be caused by several factors, i.e.: (1) the change of corporate tax rate from 28 to 25 percent as fiscal policy after the impact of Global Financial Crisis 2008. It could reduce tax avoidance behaviour; (2) Indonesian Go Public Information Centre stated that the purpose of the firms’ Initial Public Offering (IPO) is not only to finance the firms’ operation due to increases in financial constraints, but also to increase firm value, improve corporate image, grow employee loyalty, maintain business continuity and get tax incentives; (3) the equity financing in Indonesia is more related to equity participation activities conducted among shareholders that’s not listed on the stock or bond markets, e.g. private placement, joint venture, mergers and acquisitions.

Corporate Tax Avoidance Practices: An Empirical Evidence from Nigerian Firms

2019 ◽  
Vol 64 (3) ◽  
pp. 39-53
Author(s):  
Tajudeen Adejare Adegbite ◽  
Mustapha Bojuwon
Keyword(s):  
Intangible Assets ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Panel Data Analysis ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Corporate Tax ◽  
Listed Firms ◽  
Analysis Technique ◽  
Primary Driver

Abstract This study examined the existence of corporate tax avoidance practices among the public listed firms in Nigeria. Secondary data were obtained from annual published reports from selected Nigerian firms listed in Nigeria stock exchange from 2006 to 2017. Panel Data analysis technique was used to analyse the effect of independent variables (Thin capitalization, Leverage, Firms Size, Transfer Pricing, and Intangible Assets) on dependent variable (Corporate Tax Avoidance). The result showed that thin capitalisation, firm size, profitability, leverages, intangible assets, and transfer pricing are significantly related with corporate tax avoidance. Thin capitalisation, profitability and transfer pricing are the primary driver of corporate tax avoidance. It is concluded that there are several corporate tax avoidance practices employed by Nigerian firms to aggressively reduce their corporate tax liabilities in Nigeria.

scholarly journals Tax Avoidance and Firm Value Relationship in the Listed Companies of Bangladesh: A Conceptual Overview

2020 ◽  
Vol 5 (2) ◽  
pp. 23
Author(s):  
Md. Nazrul Islam ◽  
Fathyah Hashim
Keyword(s):  
Firm Value ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Agency Conflicts ◽  
Stock Market Index ◽  
Corporate Tax ◽  
Corporate Managers ◽  
Listed Firms ◽  
Market Index ◽  
Value Association

The aim of the present paper is to look at whether corporate tax avoidance (CTA) contributes to firm value in the perspective of Bangladeshi listed firms. Our conceptual assumption is that in presence of agency conflicts, corporate managers take on tax avoidance (TA) initiatives to extract their own benefits through taking advantage as of the loopholes of current tax laws. Further, CTA does not fulfill the ethical and social demands. Agency costs and social irresponsibility that produce from TA activities could adversely influence the firm value. It is also among the first paper focusing on the TA and firm value association in the perspective of Bangladeshi listed firms after the gradual decline of stock market index during the year 2019, whereas most of the adjacent South Asian countries’ bourse has achieved gradual improve. However, the present paper aims to integrate relevant studies and theories to extend the intended potentials for limiting corporate tax avoidance to enhance the value of the listed companies in Bangladesh. This study has evaluated CTA behavior from a combination of agency theory and stakeholder theory standpoint rather than traditional sight of tax burden decreasing strategy. Moreover, as existing literature reveals inconsistent and less evidence that attempt to examine the consequence of CTA on firm value, the present paper proposes and shows an imperative proposition for potential empirical research.

Returnee Directors and Corporate Tax Avoidance

2021 ◽  
pp. 0148558X2110173
Author(s):  
Jia Chen ◽  
Dongjie Chen ◽  
Li Liu ◽  
Zhong Wang
Keyword(s):  
Instrumental Variable ◽  
Tax Avoidance ◽  
Independent Directors ◽  
Positive Relation ◽  
Corporate Tax ◽  
Listed Firms ◽  
Board Directors ◽  
Low Levels ◽  
Using Data ◽  
Work Abroad

This study evaluates the effect of returnee directors on corporate tax avoidance by using data on publicly listed Chinese companies from 2000 to 2012. Returnee directors grow up in China and then study or work abroad before returning home to be listed firms’ board directors. We use the introduction of provincial policies toward attracting skilled individuals with foreign experience as an instrumental variable for Returnee directors, which is the fraction of returnee directors divided by the total number of directors within a firm. Using quantile regression, we find a positive relation between Returnee directors and corporate tax avoidance for low levels of tax avoidance but a negative relation for high levels of tax avoidance. The result is robust to a battery of tests. The relation between returnee directors and tax avoidance is stronger for state-owned enterprises (SOEs) than non-SOEs and stronger for returnees who hold MBA degrees, possess a background in accounting or auditing, or are independent directors than other returnees.

scholarly journals INDONESIAN LISTED FIRMS, CORPORATE TAX AVOIDANCE, AND TAX HAVEN: EVIDENCE FROM THE ICIJ OFFSHORE LEAKS DATABASE

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Gatot Soepriyanto ◽  
Arfian Zudana ◽  
Priti Siwa Linggam
Keyword(s):  
Stock Exchange ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Tax Havens ◽  
Tax Rate ◽  
Listed Firms ◽  
Tax Haven ◽  
Tax Savings ◽  
Tax Payments

This study aims to investigate the involvement of Indonesian firms in tax haven jurisdiction and their corporate tax avoidance activities. Employing Indonesian companies listed in the Indonesia Stock Exchange and the ICIJ Offshore Leaks Database from 2005-2016, this study found that Indonesian companies with tax haven operations as documented in the offshore database have a lower Cash Effective Tax Rate (CETR) and Book Effective Tax Rate (BETR) relative to companies which presumably are unrelated to tax haven jurisdiction based on the leaks data. The results indicate that the effect of having tax haven operations is the reduction of tax payments. Furthermore, as predicted, this study found evidence that companies with tax haven operations as indicated in the ICIJ Offshore Leaks Database have higher cash holdings compared to the counterparts. In this case, those companies also have lower leverage relative to the companies without tax haven operations. Additionally, we also found that firms involved in tax haven operations have a lower return on assets and capital expenditures compared to firms that are not established in a tax haven jurisdiction. In general, those results show that by having operations in tax havens, companies can generate higher cash tax savings to be used for their operations. The findings of this study are significant to identify the characteristics attached to companies with tax haven operations and extend previous literature studies by providing evidence on the characteristics of companies in developing countries which use tax haven operations.

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