Tax aggressiveness of family firms in emerging countries: How does resource-based view explain it?

Sucahyo, Usil Sis; Damayanti, Theresia Woro; Prabowo, Ronny; Supramono, Supramono

doi:10.15678/eber.2020.080306

Cited by 4 publications

(4 citation statements)

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“…The impact of tax-avoiding behavior on firm size has been explained through political cost and political power theory. Political power theory states that large-sized firms are more engaged in tax avoidance activities due to high economic and political power (Sucahyo, Damayanti, Prabowo, & Supramono, 2020). While political cost theory (Salman, 2018) states that large firms are under more pressure to disclose performance transparency to regulatory bodies compared to small-sized firms, which shows a negative attitude toward tax avoidance decisions.…”

Section: Results Of Systematic Analysismentioning

confidence: 99%

“…Firm characteristics have a significant impact on tax avoidance practices. The impact of tax-avoiding behavior on firm size has been explained through political cost and political (Sucahyo, Damayanti, Prabowo, & Supramono, 2020). While political cost theory (Salman, 2018) states that large firms are under more pressure to disclose performance transparency to regulatory bodies compared to small-sized firms, which shows a negative attitude toward tax avoidance decisions.…”

Section: Firm Characteristicsmentioning

confidence: 99%

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Corporate tax avoidance: a systematic literature review and future research directions

Duhoon,

Singh

2023

LBSJMR

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PurposeThe increased interest among academicians to explore more about tax management behavior is evident in the literature on corporate tax avoidance. This paper aims to illustrate the multiple aspects that influence the tax avoidance behavior of corporations and its impacts through the systematic review method.Design/methodology/approachThis study used “Tax Avoidance” OR “Tax Aggressiveness” OR “Tax Planning” as search strings to extract the relevant literature from the Scopus database. This study is a comprehensive analysis of existing literature on corporate tax avoidance behavior. Further, the keyword network analysis has been used to find out the most explored and dry research areas related to corporate tax avoidance behavior using VOSviewer software.FindingsThe study finds that taxation decision is an important managerial decision. Managers adopt tax avoidance tactics to boost postax profits to meet the shareholders’ expectations, particularly of risk-averse shareholders, and sometimes for their benefit also. With this, this study also finds that firms’ characteristics, political connections and corporate social responsibility activities also impact taxation decisions. In addition, the study identifies that tax-avoiding behavior has a contradictory impact on firm value, market growth and corporate transparency disclosure decisions.Research limitations/implicationsThe study assists the researchers by providing a brief overview of tax avoidance behavior, for corporates in understanding the implications of tax avoidance, and for policymakers to fix the taxation loopholes and bring necessary tax reforms.Originality/valueThis study adds to the existing literature by providing a thorough overview of theories, determinants and outcomes of corporate tax avoidance behavior.

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Section: Results Of Systematic Analysismentioning

confidence: 99%

Section: Firm Characteristicsmentioning

confidence: 99%

Corporate tax avoidance: a systematic literature review and future research directions

Duhoon,

Singh

2023

LBSJMR

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“…The most profitable women’s businesses in Småland [1] are found within the male-dominated manufacturing industry. The study context is important as it contributes to a deeper understanding of a woman’s agency (Kumar, 2014; Sucahyo et al , 2020) in various contexts, including in the rural setting (Larty and Hamilton, 2011). Though in Sweden, gender equality is typically supported by legislation, policies and institutional frameworks (Griffin and Häyrén, 2022; Goldscheider et al , 2015; Tillmar et al , 2021), traditional gender norms and hierarchies (Forsberg and Stenbacka, 2013) remain prevalent in rural areas (Gashi Nulleshi and Kalonaityte, forthcoming).…”

Section: Methodsmentioning

confidence: 99%

How do women entrepreneurs influence the strategic orientation of family businesses? A typology of Swedish decision-making in Småland community

Nulleshi

2022

JEC

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Purpose This paper aims to add to the theorization of family dynamics and women’s entrepreneurship by examining women’s influence on decision-making in family businesses. Business decisions in family firms, in particular, are not free from family influence in terms of goals and strategies, and the role of women in decision-making processes is of particular interest. Consequently, the role of women entrepreneurs in family firms and their influence on business development requires a more fine-grained analysis of the family dynamic within the family and the business. Design/methodology/approach This study draws on a qualitative study and focuses on the life story narratives of nine women in rural family businesses in rural communities of Småland province in Sweden to empirically examine the decision-making processes. This region is known both for its entrepreneurial culture and traditional gender order. Based on the narrative accounts of women entrepreneurs in family businesses, the data analysis method is thematic, using a Gioia-inspired method. Findings The complexity of decision-making in rural family firms is further complicated in part due to a closeness with the rural community. Thus, a typology of three decision-making modes in family firms emerges an informal family-oriented mode, a semistructured family/employee consensus mode and a formal board mode with at least one nonfamily member. Moreover, the advantages, disadvantages and strategies that women use to influence decisions within the respective mode are outlined. Originality/value This work contributes to the study of women’s agency and its implications in family business and entrepreneurship in the rural context. The study implies that women’s agency shapes the (rural) entrepreneurship context and, likewise, the (rural) entrepreneurship context influences women’s agency. Hence, the author challenges the view of women as only caregivers and sheds light on the practices and processes behind the scenes of entrepreneurial family businesses.

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“…Taxes are collected mainly because they represent the main financial resources for the functioning of the state. On the other hand, taxes and their payment have almost always been considered as "necessary evil" (Gallemore & Labro, 2015;Pezzolo, 2020;Sucahyo et al, 2020); therefore, tax management is used to maximize companies' corporate income (Peňaflor-Guerra et al, 2020;Herbain, 2018;Thottoli, 2021). There are many cases when business entities illegally enrich themselves with taxes (Mažáry, 2014), which strongly contrasts with the desired sustainable economic development.…”

Section: Introductionmentioning

confidence: 99%

Tax evasion in the EU countries following a predictive analysis and a forecast model for Slovakia

Dobrovič

Rajnoha

Šuleř

2021

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Research background: Tax evasion is an urgent challenge for governments, as reaching sufficient level of tax revenues enable adequate sustainable economic development. The motivation for the research was thus the identification of the situation in the EU countries. Purpose of the article: The main research objective was to identify the extent of tax evasion in the EU countries, with a subsequent specific focus on the econometric predictive models and a forecast of their future development in the case of Slovakia as the poorest performing country of the V4 in this area. Methods: The research was primarily based on testing selected statistical indicators in the field of tax evasions expressed on the basis of the VAT gap. The data for the research was obtained from the EUROSTAT database and the international system VIES for the period between 2000 and 2017. In addition to panel graphs, the research hypotheses were tested primarily using a cluster analysis, t-test, time series analysis, and an analysis of the time series trend with 4 basic models: linear trend, quadratic trend, growth curve model, and S-curve model. On the basis of the Mean Absolute Percentage Error (MAPE), the S-Curve model was selected as the determining model of predicting tax evasion. Findings & value added: Based on the results of the cluster analysis, the EU countries were divided into five reference groups by the VAT gap value, using the VAT gap percentage share on the overall GDP value. The research also provides a unique methodological framework and a unique econometric model for predicting the future VAT gap in Slovakia as the poorest performing country of the V4 in this area, which is applicable to other V4 and EU countries. The research results also enable policy-makers in the EU countries and specifically also in Slovakia and other V4 countries to compare themselves explicitly with the reference countries of the EU in terms of tax evasion and subsequently adopt adequate measures to improve the effectiveness and performance in this field.

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Tax aggressiveness of family firms in emerging countries: How does resource-based view explain it?

Cited by 4 publications

References 42 publications

Corporate tax avoidance: a systematic literature review and future research directions

Corporate tax avoidance: a systematic literature review and future research directions

How do women entrepreneurs influence the strategic orientation of family businesses? A typology of Swedish decision-making in Småland community

Tax evasion in the EU countries following a predictive analysis and a forecast model for Slovakia

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