Long-Run Corporate Tax Avoidance

Dyreng, Scott D.; Hanlon, Michelle; Maydew, Edward L.

doi:10.2308/accr.2008.83.1.61

Cited by 1,583 publications

(1,529 citation statements)

References 52 publications

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“…Comparing this research with that by Dyreng et al (2008), it is noticed that the CashETR (24%) in Brazilian companies listed on the sample is lower than that showed by the authors, which was 29.6%, i.e. 5.6 percentage points less than the CashETR in U.S. companies included in that sample.…”

Section: Analysis Of Resultscontrasting

confidence: 56%

“…To overcome these drawbacks, Dyreng et al (2008) proposed the Cash Effective Tax Rates -CashETR as another way to identify tax management, where expenses on taxes on earnings are added in the long term and this value is divided by the sum of earnings within the same period. This measure prevents variation in the effective tax rate due to values unrelated to tax management.…”

Section: Analysis Of Resultsmentioning

confidence: 99%

“…There are also several studies that oppose remuneration to fiscal management, by checking whether remuneration encourages tax management (Desai & Dharmapala, 2006;Dyreng et al, 2008;Robinson et al, 2010;Armstrong et al, 2011).…”

Section: Corporate Governance Agency Problem and Player Remunerationmentioning

confidence: 99%

“…According to Dyreng et al (2008), the CashETR considers actually paid taxes, since they take into account, along with due tax, extraordinary payments and realized remuneration, thus becoming a proxy with better disposition to measure long-term tax avoidance in companies.…”

Section: Measurements To Identify Tax Management: Etr Cashetr and Btdmentioning

confidence: 99%

“…Many studies (Desai & Dharmapala, 2006;Dyreng, Hanlon, & Maydew, 2008;Robinson, Sikes, & Weaver, 2010;Armstrong, Blouin, & Larcker, 2011) report that tax management may be measured through three proxies: Effective Tax Rate (ETR), Cash Effective Tax Rate (CashE-TR), and Book-Tax Differences (BTD). It is understood as ETR the result of dividing expenses on taxes on earnings by company's earnings before taxes on earnings; so, ETR is the effective tax rate on company's profit.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Characteristics as a Stimulus to Tax Management

Gomes

2016

Rev. contab. finanç.

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This article aimed to investigate whether corporate governance uses tax management to increase companies' performance. The objective was checking whether corporate governance characteristics, such as remuneration paid to the executive board, segregation between Chairman and CEO, and the independence and composition of the Board of Directors, influence tax management in Brazilian companies. At the same time, it aimed to identify whether the preceding tax management is reflected on the subsequent tax management. To do this, a sample of 355 Brazilian companies listed on the BM&FBOVESPA between 2008 and 2014 was used, in order to find out whether their corporate governance characteristics influenced tax management, something identified by calculating ETR, CashETR, and BTD. As a result, it was found (i) that the remuneration paid to executives may be regarded as a characteristic influencing tax management in Brazilian firms, and (ii) that the preceding tax management influences the future tax management. In addition, it was found that Brazilian companies do not rule out tax management benefits, since the average effective rate in the sample under analysis was 25%, and it is statistically lower than the nominal rate of taxes on earnings in Brazil, which is 34%.

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Section: Analysis Of Resultscontrasting

confidence: 56%

Section: Analysis Of Resultsmentioning

confidence: 99%

Section: Corporate Governance Agency Problem and Player Remunerationmentioning

confidence: 99%

Section: Measurements To Identify Tax Management: Etr Cashetr and Btdmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Characteristics as a Stimulus to Tax Management

Gomes

2016

Rev. contab. finanç.

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Tax amnesty, corporate social responsibility disclosure, and organizational inertia

Adhariani,

Hajawiyah,

Rini

2023

Bus Strat Dev

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This study investigates the empirical association between corporate social responsibility (CSR) disclosure and tax compliance when there is a tax amnesty policy provided by the government. Utilizing the difference in difference method, we studied the impact of the tax amnesty program on tax compliance and CSR disclosure of companies in the mining industry in Indonesia context for the research period 2014–2019. Consistent with inertia theory, we observe the organizational inertia phenomena as the findings indicate the insignificant impact of the tax amnesty program on tax compliance and the marginally significant negative impact on CSR disclosure. This might come from corporate attributes that cause the inertia such as routines and procedures as well as the fixed mindset of the companies' decision‐makers on the cost and benefit of becoming corporate citizens. The inertia might also reflect the weaknesses in the management control system, especially in the belief and boundary control system. This research discusses the impact of tax amnesty on CSR disclosure which has been rarely investigated in previous studies. This study also extends the inertia theory on the taxation context and provides policy implications on tax amnesty.

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Corporate tax avoidance and firm value: The moderating role of environmental, social, and governance (ESG) ratings

Elamer,

Boulhaga,

Ibrahim

2024

Bus Strat Env

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In this study, we examine how managers in firms that have practiced tax avoidance strategically use sustainability activities together with their tax avoidance practices. More specifically, we investigate the moderating impact of ESG on the association between tax avoidance and firm value. Using a sample of French‐listed companies during the years 2012–2021, we hypothesized and found that ESG rating negatively and significantly moderates the relationship between corporate tax avoidance and firm market valuation. Overall, our results suggest that investors reward firms for good ESG performance, perceiving such companies as more valuable. However, when these firms engage in higher tax liabilities, the positive effect of ESG on firm value is slightly reduced. This nuanced insight highlights the importance of considering how tax strategies interact with ESG initiatives in shaping overall firm value. This study, thus, provides theoretical and practical consequences that will encourage businesses and politicians to promote sustainable development. Our findings remain robust to an array of tests, including a number of different tax avoidance measures and potential endogeneity problems.

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Long-Run Corporate Tax Avoidance

Cited by 1,583 publications

References 52 publications

Corporate Governance Characteristics as a Stimulus to Tax Management

Corporate Governance Characteristics as a Stimulus to Tax Management

Tax amnesty, corporate social responsibility disclosure, and organizational inertia

Corporate tax avoidance and firm value: The moderating role of environmental, social, and governance (ESG) ratings

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