Tax evasion, firm’s value and governance: evidence from Tunisian Stock Exchange

Abstract

Purpose The purpose of this study is to analyze the relationship between tax evasion and firm’s value while determining the moderating role of family management and the ownership’s concentration in this relationship. Design/methodology/approach The empirical study employs a Panel Data set of 34 firms listed on the Tunisian Stock Exchange (TSE) for the period 2007 to 2014. Regression analysis is used to estimate the relationships proposed in the hypotheses. Findings The results show that tax evasion has no direct effect on a firm’s value. This study highlighted the presence of a moderating effect of family management on the relationship between tax evasion and firm’s value. However, no moderating effect of the concentration of property on the mentioned relationship was detected. Originality/value This study represents a first empirical essay focusing on the relationship between tax evasion and firm’s value. Furthermore, it analyzes the moderating effect of some aspects of governance, such as family management and ownership’s structure, on this relationship in a Tunisian context.

Tax Evasion and Inequality

“…4 See, e.g., Piketty and Saez (2003) for US top income shares, Saez and Zucman (2016) for US top wealth shares, Atkinson, Piketty, and Saez (2011) for a survey, Piketty (2014) for a broad interpretative synthesis, and Piketty, Saez, and Zucman (2018) for an attempt at distributing all of US national income (including legally tax-exempt income, but excluding income hidden abroad which is missed by the national accounts). 5 Waldenström (2008, 2009) study the distributional implications of hidden wealth for the recent period. They use an indirect method (residual flows in the balance of payments and financial accounts) to estimate the amount of wealth hidden by Swedish residents, and assume that this wealth primarily belongs to the top.…”

“…Our contribution here is to study microdata that provide the first direct evidence on how hidden wealth is distributed. 5 The rest of this paper proceeds as follows. Section I presents the HSBC, Panama Papers, and amnesty data, and Section II analyzes them.…”

“…HSBC Evaders, Panama Papers Individuals, and Amnesty Participants, by Wealth Group Columns 1,5,7,and 11 show the fraction of all households who evaded taxes at HSBC Switzerland, who are in the Panama Papers, or who used a tax amnesty to voluntarily disclose hidden wealth, by wealth group. For HSBC, our sample pools Norwegian, Swedish, and Danish households; therefore wealth groups are defined relative to Scandinavia as a whole (Norway, Sweden, plus Denmark).…”

Peran Konsentrasi Kepemilikan: Respon Investor, Penghindaran Pajak, Manajemen Laba

“…Beberapa penelitian sebelumnya telah menguji faktor-faktor yang mempengaruhi nilai perusahaan seperti seperti cash holding (Cheryta et al, 2018;Firmansyah, Setiawan, et al, 2020), profitabilitas (Apriliyanti et al, 2019;Christiani & Herawaty, 2019), ukuran perusahaan (Christiani & Herawaty, 2019), struktur modal (Suranto et al, 2017), pertumbuhan penjualan (Apriliyanti et al, 2019), kebijakan utang (Bahrun et al, 2020;Farida & Kusumadewi, 2019), instrumen derivatif (Firmansyah & Purnama, 2020;Novianti & Firmansyah, 2020), kebijakan dividen (Apriliyanti et al, 2019;Arizki et al, 2019;Salman et al, 2020), income smoothing (Novianti & Firmansyah, 2020), pengungkapan CSR (Rjiba et al, 2020;Ronald et al, 2019), tata kelola perusahaan (Buchanan et al, 2018;Budiyono & Wulansari, 2018;Fatimah et al, 2019;Huang et al, 2020), manajemen laba (Darwis, 2012;Diatmika & Sukartha, 2019;Kamil & Hapsari, 2014;Kristanti & Priyadi, 2016;Lestari & Ningrum, 2018;Simarmata & Cahyonowati, 2014;Sugiono, 2020;Utami, 2017;Yorke et al, 2016), revaluasi aset tetap (Salman et al, 2020), penghindaran pajak (Diatmika & Sukartha, 2019;Fadillah, 2019;Ilmiani & Sutrisno, 2014;Irawan & Turwanto, 2020;Lestari & Ningrum, 2018;Nafti et al, 20...…”

“…Sementara itu, Irawan & Turwanto (2020), Simarmata & Cahyonowati (2014), Widodo & Firmansyah (2021), Yorke et al, (2016) menyimpulkan bahwa penghindaran pajak memiliki pengaruh positif terhadap nilai perusahaan. Penelitian lainnya, Nafti et al (2020), dan Sugiono (2020) menunjukkan bahwa penghindaran pajak tidak memiliki pengaruh terhadap nilai perusahaan. Beberapa penelitian tersebut menunjukkan bahwa masih terdapat inkonsistensi hasil pengujian, sehingga penghindaran pajak terhadap nilai perusahaan perlu diinvestigasi kembali.…”