scholarly journals The Moderating Effects of Social-Sustainability on Corporate Characteristics’ Relationship with Environmental-Sustainability Reporting

2018 ◽  
pp. 22-32
Author(s):  
Dr.Alhassan Haladu
Keyword(s):  
Environmental Sustainability ◽  
Social Sustainability ◽  
Sustainability Reporting ◽  
Moderating Effects ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Audit Firm ◽  
Environmentally Sensitive ◽  
The Relationship ◽  
Simple Average

Due to the greater influence of sustainability issues on today’s global matters, this research observed how social-sustainability could influence the relationship between specific firm characteristics of firm age, audit firm, effective tax rate and environmental-sustainability disclosure. This area is a very wide gap that is yet to be fully explored especially as it affects developing economies. In this study, the researcher covers the entire environmentally sensitive sector of the Nigerian economy with 67 companies chosen as sample size for the study. Measurement of the dependent and moderating variables was done through simple average disclosure index (SADI) which, isthe simple average of the total disclosure made on individual elements under these two observations. The framework and model of the study were built on the moderating effects of social-sustainability on the relationship between specific corporate characteristics and environmental-sustainability reporting. Using Stata13 the study tests for the level of disclosure of environmental-sustainability, types, direction, and impacts of the relationships between the specific corporate characteristics and environment-sustainability reporting; and the significance of the influence of the relationship. The results show among other things that a positive and significant relationship exists between firm age, audit firm & effective tax rate, and environmental-sustainability reporting. Furthermore, it was discovered that high environmentally sensitive elements such as biodiversity & wastes, effluents, product impacts and environmental management department; have lower disclosure rates compared to lower environmental elements like materials used and energy consumed.

The role of sustainability reporting in shareholder perception of tax avoidance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Astrid Rudyanto ◽  
Kashan Pirzada
Keyword(s):  
Firm Value ◽  
Tax Avoidance ◽  
Sustainability Reporting ◽  
Positive Association ◽  
Moderating Effect ◽  
Effective Tax Rate ◽  
Content Type ◽  
Tax Rate ◽  
Environmentally Sensitive ◽  
The Relationship

Purpose The purpose of this study is to examine the moderating effect of sustainability reporting on the relationship between tax avoidance and firm value. This study also examines the moderating effect of sustainability reporting in both environmentally sensitive firms and non-environmentally sensitive firms. Design/methodology/approach This research uses moderated panel regression with 596 observations and 734 observations for cash effective tax rate (ETR) and generally accepted accounting principles effective tax rate (GAAP ETR) of firms listed on the Indonesian Stock Exchange between 2014 and 2016. Tax avoidance is measured by both cash ETR and GAAP ETR. Findings This paper shows that sustainability reporting moderates the relationship between tax avoidance (GAAP ETR) and firm value. The results show that GAAP ETR has a negative association with firm value in non-environmentally sensitive firms and a positive association with firm value in environmentally sensitive firms. Consequently, the sustainability report alters only the effect of GAAP ETR on firm value in non-environmentally sensitive firms. The results imply that, unlike environmentally sensitive firms, non-environmentally sensitive firms need sustainability reporting to reduce the reputational costs of tax avoidance. Originality/value How shareholders view tax avoidance remains unclear; research on this topic often fails to produce a uniform result. The present research fills this gap by using the existence of sustainability reporting as proof of companies’ ethical motivations to moderate the association of tax avoidance and firm value, which has not been discussed in previous research.

The impact of the motivation for status on consumers’ perceptions of retailer sustainability: the moderating impact of collectivism and materialism

2017 ◽  
Vol 34 (4) ◽  
pp. 292-305 ◽  
Author(s):  
Mertcan Tascioglu ◽  
Jacqueline Kilsheimer Eastman ◽  
Rajesh Iyer
Keyword(s):  
Environmental Sustainability ◽  
Generational Differences ◽  
Age Groups ◽  
Social Sustainability ◽  
Cultural Dimensions ◽  
Future Research ◽  
Bandwagon Effect ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to investigate consumers’ perceptions of status motivations on retailers’ sustainability efforts and whether collectivism and materialism moderate this relationship. Design/methodology/approach A quantitative research methodology using survey data was used. Data were collected by administering questionnaires from millennial respondents (n = 386) from the USA and Turkey. Findings The results show that cultural value (collectivism) and materialism can serve as moderators of the effects of status motivation and sustainability. The findings indicate that the link between status motivation and sustainability perceptions (both environmental and social sustainability) is stronger for more collectivist consumers. In terms of materialism, while it did not moderate the relationship between status motivation and perceptions of environmental sustainability, it did moderate the relationship between status motivation and perceptions of social sustainability, particularly the uniqueness aspect of materialism. Research limitations/implications The stronger link between status motivation and both environmental and social sustainability for collectivists suggests that the bandwagon effect may be impacting their need for status. The stronger link between status motivation and social sustainability for those more materialistic suggests that their need for status may be more impacted by a snob effect as they want to appear unique. The use of college students is a limitation of this study, and future research needs to explore a wider range of age groups to determine if there are generational differences. Additionally, future research could examine other cultural dimensions such as power distance and masculinity versus femininity. Practical implications Findings from this research provide insights for retailers, especially those targeting the status and luxury market when developing their sustainability plans. An interest in sustainability may aid consumers in meeting their need for status, particularly for those status consumers who are more collectivist, as a means to fit in with their group. For more materialistic consumers, retailers may want to focus more on unique social sustainability efforts that are more publicly noticeable. Social implications Social sustainability, a topic not studied as frequently as environmental sustainability, has significant implications for consumers. The findings suggest that the link between status motivation and social sustainability is stronger for collectivists, suggesting a bandwagon effect. Additionally, the authors find that the link between status motivation and social sustainability is stronger for materialists, particularly the uniqueness dimension of materialism, suggesting a snob effect. Originality/value The originality of this study lies in the exploration of how status motivation impacts consumers’ perceptions of retailers’ environmental and social sustainability efforts and if these relationships are moderated by collectivism and materialism. Few studies have examined social sustainability, especially in terms of culture.

scholarly journals PENGARUH PENGHINDARAN PAJAK TERHADAP BIAYA HUTANG DAN KEPEMILIKAN INSTITUSIONAL SEBAGAI PEMODERASI

2019 ◽  
Vol 21 (1) ◽  
pp. 47-60
Author(s):  
FAHREZA UTAMA ◽  
DWI JAYA KIRANA ◽  
KORNEL SITANGGANG
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Cost Of Debt ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Section Data ◽  
The Cost ◽  
The Relationship

The aim of this study is to test the influence of tax avoidance towards the cost of debt moderated by institutional ownership. In this research, tax avoidance measured by proxy of Book Tax Different (BTD) and Cash Effective Tax Rate (CETR). The population in this research is manufacturing firms that listed on Indonesia Stock Exchange (IDX) with 2015-2017 time periods. The amount of sample before outlier is 198 datas collected with purposive sampling method, then the amount of sample after outlier is 187 datas for first model and 186 datas for second model. Cross section data is used in this research. Multiple linear regression, determination coefficients, and partial test (t-test) is used with some help of programming data using SPSS (Statistical Product and Service Solution) 23th version to analize in this research. The result of this study indicate tax avoidance has not significant influence towards the cost of debt, and institutional ownership can’t moderate the relationship between tax avoidance and the cost of debt.

scholarly journals Is Innovation a Driver of Sustainability? An Analysis from a Spanish Region

2021 ◽  
Vol 13 (16) ◽  
pp. 9286
Author(s):  
Alicia Llorca-Ponce ◽  
Gregorio Rius-Sorolla ◽  
Francisco J. Ferreiro-Seoane
Keyword(s):  
Environmental Sustainability ◽  
Driving Force ◽  
Social Economic ◽  
Social Sustainability ◽  
Three Dimensions ◽  
Environmental Certification ◽  
Environmentally Sensitive ◽  
Employment Generation ◽  
Financial Profitability ◽  
Spanish Region

1. Background. It is well-known that innovation contributes to economic growth, improves productivity and enables competitive advantage. However, beyond these matters, it would be of interest to know what role innovation plays in relation to sustainability. This paper focuses on whether innovation is a driver of sustainability in its three dimensions: social, economic and environmental. 2. Methods. The study was conducted with companies in the Valencian community (Spain) to analyze whether they significantly contribute to sustainability as innovators. Economical sustainability was assessed based on economic and financial profitability; social sustainability was assessed by employment generation. To determine whether companies contributed to environmental sustainability, we considered those which, apart from a reputation (“label”) in innovation, had some kind of environmental certification. 3. Results. Our results indicate that innovative companies are more profitable and generate more employment. However, there are no differences in terms of performance and employment generation between innovative companies and those that are also environmentally sensitive. 4. Conclusion. Innovation is a driving force of economic and social sustainability in the studied area, but environmental sensitivity is not a driver for economic and social sustainability.

scholarly journals The relationship between the effective tax rate and the nominal rate

2018 ◽  
Vol 63 (2) ◽  
pp. 33
Author(s):  
Paulo Jorge Varela Lopes Dias ◽  
Pedro Miguel Gomes Reis
Keyword(s):  
European Union ◽  
United Kingdom ◽  
Effective Rate ◽  
The European Union ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
The United Kingdom ◽  
Nominal Rate ◽  
The Relationship

<p class="Pa7">The main goal of this investigation is to understand the relationship between the nominal rate and the effective tax rate and to evaluate if the differences between them depend on the value of the nominal rate. Based on a sample of 1,530 companies from 5 countries members of the European Union (Denmark, Slovenia, Finland, Luxembourg and the United Kingdom) there’s evidence that the effective tax rate is positively related to the nominal rate. The effective tax rate was calculated through the ratio between the value of the tax paid over the result before tax. When the nominal tax rate increases, the effective rate increases equally but with a slower growth. This relationship is softened if we take into account the value of the nominal tax rate, which shows that companies have the ability to manage the results in order to increase savings in tax.</p>

scholarly journals Tax Aggressiveness, Market and Idiosyncratic Risks in Brazil

2020 ◽  
Vol 21 ◽  
pp. 1-14
Author(s):  
Antonio Lopo Martinez ◽  
Welliton Botão Martins
Keyword(s):  
Significant Relationship ◽  
Idiosyncratic Risk ◽  
Financial Risks ◽  
Business Managers ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
The Relationship

This study aims to analyze the relationship between tax aggressiveness and the risks associated with the variation of returns in Brazilian companies’ stock. Particularly, the research regards the systematic and idiosyncratic risks. The sample was formed by companies that composed the IBOVESPA index in the period between 2011 to 2016. The measurements of tax aggressiveness were the effective tax rate and the temporary book-tax differences. The results showed a significant relationship between tax aggressiveness and risk, concluding that the higher the tax aggressiveness, the lower the beta, and the higher the idiosyncratic risk. This study is essential because it maps the effect of tax aggressiveness on the financial risks related to Brazilian companies’ shares, as well as being useful to investors, portfolio, and business managers.

scholarly journals The Effect of Corporate Tax Planning On Firm Value

2019 ◽  
Vol 4 (1) ◽  
pp. 01-04
Author(s):  
Silvy Christina
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Jel Classification ◽  
Tax Planning ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Negative Effect ◽  
Tax Savings ◽  
The Relationship

Objective - This research aims to empirically examine the effect of tax planning on firm value. The population of this research consists of manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2014 to 2016. Methodology/Technique - This research uses 3 recent years and uses variables not used in previous research. The 43 respondents were chosen using purposive sampling. The hypotheses were tested using multiple regressions with Eviews program to determine the relationship between each independent variable to firm value. Findings - The empirical results show that tax planning that is measured by the cash effective tax rate has a negative effect on firm value, while tax planning measured by effective cash rate and tax savings has no effect on firm value. Novelty - The study recommends the need for firms to institute more robust tax planning practices that will help reduce their effective tax liabilities and therefore improve their overall value. Firms that engage in better tax planning practices are likely to get higher firm value. Type of Paper Empirical. Keywords: Firm Performance; Tax Planning; Effective Tax Rate; Cash Effective Tax Rate; Tax Saving. JEL Classification: M40, M42, M49. DOI: https://doi.org/10.35609/afr.2019.4.1(1)

scholarly journals Alíquota efetiva de tributos sobre o lucro no Brasil das companhias da B3: um estudo da relação dos indicadores de retorno financeiro

ForScience ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. e00776
Author(s):  
Tiago De Jesus Mendes ◽  
Ilva Ruas Abreu ◽  
Felipe Fróes Couto
Keyword(s):  
Effective Rate ◽  
Third Party ◽  
Tax Rates ◽  
Effective Tax Rate ◽  
Financial Return ◽  
Return On Equity ◽  
Tax Rate ◽  
Tax Management ◽  
Relationship Of ◽  
The Relationship

A relação dos indicadores de retorno financeiro das empresas do Brasil, Bolsa, Balcão-B3, com o gerenciamento da alíquota efetiva de tributos sobre o lucro, influenciou a pesquisa. Para isso, identificou-se a relação dos indicadores financeiros de retorno sobre o patrimônio-ROE e o retorno sobre o capital investido- ROIC com a alíquota efetiva dos tributos sobre o lucro. A pesquisa possui característica explicativa e utilizou-se de regressão com dados em painel para analisar os resultados. Como resultado, o ROIC demonstrou que possivelmente as empresas mais rentáveis possuem maiores alíquotas efetivas dos tributos. O ROE apresentou que, possivelmente, o investimento da organização na remuneração por desempenho dos diretores, os leva a investirem mais recursos no gerenciamento tributário, gerando um aumento do retorno para os acionistas. A alavancagem financeira indica que no Brasil uma estrutura alavancada, pode contribuir para uma maior carga fiscal, levando as empresas a aumentarem as participações de capitais de terceiros, neutralizando o efeito da alavancagem sobre a tributação. O tamanho da empresa pode indicar que quanto maior o tamanho da empresa menor o imposto sobre o lucro da empresa. Como resultado para a taxa de imposto efetiva identificou-se que as empresas utilizam os benefícios da redução da alíquota efetiva dos tributos sobre o lucro, pois o teste não paramétrico de sinais demonstrou que em 80% das observações, as alíquotas efetivas dos tributos das empresas analisadas são menores que a alíquota nominal de 34%, logo as empresas utilizam os efeitos do gerenciamento tributário. Palavras-chave: Indicadores de retorno financeiro das empresas. Gerenciamento tributário. Alíquota efetiva de tributos sobre o lucro. Effective tax rate on profit in Brazil of B3 companies: a study of the relationship of financial return indicators Abstract The list of financial return indicators for companies in Brazil, Bag, Counter-B3, with the management of the effective tax rate on profit, influenced the research. For this, the relationship between the financial indicators of return on equity-ROE and the return on invested capital-ROIC was identified with the effective rate of taxes on profit. The research has an explanatory characteristic and regression with panel data was used to analyze the results. As a result, ROIC has shown that possibly the most profitable companies have higher effective tax rates. The ROE showed that possibly the organization’s investment in the payment per directors performance leads them to invest more resources in the tax management, generating an increase to the shareholders’ return. Financial leverage indicates that in Brazil a leveraged structure can contribute to a greater tax burden, leading companies to increase the holdings of third-party capital, neutralizing the effect of leverage on taxation. The size of the company may indicate that the larger the company size, the smaller the company's profit tax.  As a result to the effective tax rate, was identified that the enterprises they use the benefits of reducing the effective tax rate on profit, since the non- parametric signal test demonstrated that in 80% of the observations, the effective rate of the analyzed companies are lower than the nominal rate of 34%, soon the companies to use the effects of tax management. Keywords: Indicators of financial return of companies. Tax management. Effective tax rate income.

SALES GROWTH SEBAGAI PEMODERASI PADA PENGARUH SOLVABILITAS DAN DEFERRED TAX EXPENSE TERHADAP TAX AVOIDANCE PADA PERUSAHAAN PERTAMBANGAN DI INDONESIA

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Ervin Ervin Noviani
Keyword(s):  
Stock Exchange ◽  
Tax Avoidance ◽  
Linear Regression Method ◽  
Sales Growth ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Deferred Tax ◽  
Relationship Of ◽  
The Relationship ◽  
Tax Expense

This study aims to analyze sales growth as a moderator of the effect of solvency and deferred tax expense on tax avoidance in mining companies in Indonesia. This research is a quantitative study with tax avoidance as the dependent variable. Tax avoidance is measured by the effective tax rate (ETR). The independent variables studied were soilvability and deferred tax expense and the moderating variable, namely sales growth. The sample of this research is 10 mining sector companies listed on the Indonesia Stock Exchange in 2016-2019. The sample was selected by purposive sampling method with certain criteria. Data analysis was performed by using classical assumption test and for hypothesis testing using multiple linear regression method. The results of this study indicate that sales growth is able to moderate the relationship of solvency to tax avoidance, sales growth is unable to moderate the relationship between deferred tax expense and tax avoidance, solvency has no significant effect on tax avoidance and deferred tax expense has a significant effect on tax avoidance Keywords : tax avoidance, sales growth, solvabilitas, deferred tax expense

scholarly journals Foreign Capital Participation and Tax Aggressiveness in Brazilian Companies

2020 ◽  
Vol 15 ◽  
pp. 43-53
Author(s):  
Antonio Lopo Martinez ◽  
Clébio Bis
Keyword(s):  
Significant Relationship ◽  
Foreign Capital ◽  
Equity Capital ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Taxable Income ◽  
Tax Management ◽  
Tax Research ◽  
The Relationship

This study explores the relationship between tax aggressiveness and foreign capital participation in Brazilian companies listed on the BM & F BOVESPA from 2010 to 2015, using the concept of tax aggressiveness as a reduction of taxable income through tax management and planning (Chen et al., 2010). Observing that previous studies show a significant relationship between tax aggressiveness and ownership structures, this research seeks to understand whether this relationship is significant if there is foreign capital participation in the company. The sample was composed of Brazilian companies listed on the BM&F BOVESPA. Two metrics of tax aggressiveness were used to investigate this relationship: effective tax rate (ETR) and book-tax difference (BTD). The use of these metrics was inspired in a review on tax research by Hanlon and Heitzman (2010), who concluded that ETR and BTD could capture the reduction of taxable income through tax planning. The results showed no significant relationship between foreign capital participation and tax aggressiveness, demonstrating that the origin of equity capital is not a factor of tax aggressiveness.

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