Effect of corporate tax avoidance activities on firm bankruptcy risk

Dhawan, Anirudh; Ma, Liangbo; Kim, Maria H.

doi:10.1016/j.jcae.2020.100187

Cited by 48 publications

(49 citation statements)

References 46 publications

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“…From a practical perspective, the tax risk has a detrimental impact on firm risk in general (Lin et al 2019). Dhawan et al (2020) reveal that higher tax avoidance and lower tax risk are more associated with the risk of bankruptcy. A study conducted by Dhawan et al (2020) provides additional and further insight into the findings of other studies which state that companies can indeed obtain two benefits at the same time, such as higher tax avoidance and lower tax risk (e.g., Hamilton and Stekelberg 2017) but this is associated with the risk of bankruptcy (Dhawan et al2020).…”

Section: Consequences Of Corporate Tax Riskmentioning

confidence: 99%

Corporate tax risk: a literature review and future research directions

Saragih

Ali

2021

Manag Rev Q

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Our study aims to analyze the current state of, and avenues for, future studies into the tax risk literature. The construct of the corporate tax risk (tax uncertainty) has increasingly begun to attract significant interest from both academics and practitioners. Most previous studies discussing corporate tax behavior have also focused on tax planning, tax avoidance, and tax evasion. Studies investigating the tax risk are still very limited and it is an underexplored subject. Examining the tax risk is crucial because it relates to the tax outcomes arising from a firm's taxation activities. Furthermore, analyzing the tax risk simultaneously with other tax behavior constructs may provide a deeper understanding. Despite the importance of the tax risk construct, there is no published literature review regarding the tax risk. Using a systematic review process, this study selected 37 articles published in 21 highly reputable journals listed in the Scopus database. The findings of this study are provided in two sections: (1) A discussion of the current studies of tax risk, including the theories, methods, and measurements of tax risk, its determinants and consequences; and (2) Recommendations for future research agendas. From the review, we find that tax risk research still tends to be limited and understudied; many relevant research gaps can be identified. Finally, we suggest several research directions into 12 themes: corporate governance, executive personal characteristics, executive compensation plans, ownership structure, firm-level characteristics, the external market, institutional factor, accounting and auditing, operating environment, regulators and regulation, reputational costs, and others.

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Section: Consequences Of Corporate Tax Riskmentioning

confidence: 99%

Corporate tax risk: a literature review and future research directions

Saragih

Ali

2021

Manag Rev Q

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“…So, as a general rule, in the event of bankruptcy of companies, such loans are returned to shareholders only after the claims of other creditors are repaidas a result, they often receive nothing. Now, for example, in Germany, the claims of shareholders who issued such loans before September 30, 2020 are considered in bankruptcy cases on a par with the usual claims of creditors [11][12].…”

Section: Methodsmentioning

confidence: 99%

Legal aspects of the moratorium on bankruptcy as an innovative trend in business support in a pandemic

Sapozhnikova

2020

E3S Web Conf.

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At the beginning of 2020, a difficult epidemiological situation developed in Russia against the background of the development of the Covid-19 pandemic. This situation had an extremely negative impact on the country's economy. The government has developed anti-crisis measures aimed at supporting economic entities in the most affected sectors of the economy. One of the measures to overcome the crisis was the transformation of legislation in the field of bankruptcy.

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“…According to research by the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASP), the assessment of bankruptcy of Russian organizations in the sectoral context showed that an increase in the number of bankruptcies was recorded in the food industry and the machine-building complex, while in other sectors such as trade, construction, transport and communications. , agriculture -no significant changes were identified for the first quarter of 2020 [1][2].…”

Section: Introductionmentioning

confidence: 97%

Analysis of foreign and domestic models for assessing the level of insolvency (bankruptcy) for organizations in the Russian Federation

Sivolapenko

Tyutyunik

2020

E3S Web Conf.

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In modern economic conditions, the main goal of managing an organization is to provide an effective management model, the main characteristic of which is the construction of a strategy for the development of an organization that will ensure the achievement of the indicators specified in it, the production efficiency of the resources used, financial stability, competitiveness and effective management of the organization's personnel. One of the main elements of building this system is the timely identification of existing risks that directly affect the assessment of the likelihood of insolvency (bankruptcy) of the organization. This article presents the calculations of nine operating models for assessing the level of bankruptcy of an organization, made on the basis of financial statements of a large Russian company engaged in the sale of goods.

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Effect of corporate tax avoidance activities on firm bankruptcy risk

Cited by 48 publications

References 46 publications

Corporate tax risk: a literature review and future research directions

Corporate tax risk: a literature review and future research directions

Legal aspects of the moratorium on bankruptcy as an innovative trend in business support in a pandemic

Analysis of foreign and domestic models for assessing the level of insolvency (bankruptcy) for organizations in the Russian Federation

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