The association between competition power in markets and tax avoidance: evidence from Tehran stock exchange

Karamshahi, Behnam; Azami, Zeinab; Salehi, Tabandeh

doi:10.1007/s40821-017-0082-8

Cited by 7 publications

(7 citation statements)

References 42 publications

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“…This research uses firm performance as a dependent variable, proxied by return on equity (ROE), calculated as net profit divided by shareholders’ equity (Ahmadi et al, 2018; Liu et al, 2015; Ullah et al, 2019). To check the robustness of the analyses, this study employs an alternative proxy for firm performance, namely, return on assets (ROA), which is measured as “profit before interest and taxes normalized by total assets” (Alam et al, 2020; Chen et al, 2019; Karamshahi et al, 2018; B. Khan et al, 2022).…”

Section: Methodsmentioning

confidence: 99%

Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?

Arif Khan,

Bin,

Wang

et al. 2023

Sage Open

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This study investigates how R&D affects firm performance and examines whether and how state ownership moderates the R&D–firm performance nexus. Moreover, this study investigates whether and how product market competition moderates the association between R&D and performance across the diﬀerent natures of firms. Employing a sample of Chinese listed firms from 2000 to 2020, the study performs estimations by applying pooled ordinary least squares regressions, fixed-effect panel regressions, and a two-step system GMM model to account for endogeneity problems. The findings reveal that firm performance reduces as R&D expenses rise, with the impact being less pronounced for state-owned enterprises. The adverse impact of R&D on corporate performance is also alleviated under intense competition. The results have important implications for policymakers, investors, and corporations seeking to understand how R&D spending influences corporate performance in competitive industries. JEL classification: L25, G32, O3

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Section: Methodsmentioning

confidence: 99%

Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?

Arif Khan,

Bin,

Wang

et al. 2023

Sage Open

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“…They reported that tax avoidance increases with the presence of threats to market competition, and that this effect is stronger in situations with weak governance and low financial flexibility. Lastly, Karamshahi et al [46] examined the relationship between market competition and tax avoidance. They revealed that the Herfindahl's Index (HHI) and the entry barrier ratio significantly influence tax avoidance.…”

Section: Market Competition and Tax Avoidancementioning

confidence: 99%

The Effect of a Company’s Sustainable Competitive Advantage on Their Tax Avoidance Strategy—Focusing on Market Competition in Korea

Shin

Park

2023

Sustainability

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This study analyzes whether a company’s competitive advantage affects a company’s tax avoidance strategy. Additionally, it analyzes whether these effects depend on the level of competition in the market to which the company belongs. This is because a company’s tax avoidance strategy may vary depending on the characteristics of the firm, such as the financial position and governance structure, the market dominance, or the degree of competition in the market to which the company belongs and it can act as an incentive for tax avoidance. Results of this study is follows. Tax avoidance increases significantly as a company’s market share increases. Also, if the sample is divided by the level of market competition and analyzed, the results show that tax avoidance increases significantly with the increase in a company’s market power only in oligopolistic markets with low market competition. Therefore, it can be interpreted that the effect of a company’s market power on tax avoidance varies depending on the level of competition in the market.

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“…Generally speaking, Herfindahl-Hirschman Index (HHI) and entrance obstacles are the two main factors to evaluate an enterprise's competition power [8], but in some situations, we can substitute them for a more specific element: effective tax rate (ETR). For host states, the existence of BEPS will enable a state's tax base to be negatively affected, and the capital collecting ability of its government will decline [9], which means to maintain the stability and total amount of revenue, the government cannot spare more benefits for local enterprises, even if it wants to support them.…”

Section: The Effects Of Tax Avoidance On Host Statesmentioning

confidence: 99%

Cause and Countermeasures on Tax Avoidance: From a Comparative View

Chen¹

2022

BCPBM

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With the internationalized establishment of multinational enterprises, many of them are trying to win more profits and save more costs for themselves for better development. To eliminate the adverse effects of tax avoidance and maintain international business order, relevant regulations and agreements should be proposed to prevent MNEs from excessively transferring their profits and evading the tax they should have paid. Case study and comparative analytical method have been used in this paper to look at whether or not the tax avoidance of MNEs is problematic for host states and propose appropriate solutions for different entities. From the research, both similarities and differences can be concluded from different MNEs’ methods of committing tax avoidance. Also, there is the possibility that relevant entities take corresponding measures within their respective region or scope to prevent adverse effects carried out by tax avoidance.

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The association between competition power in markets and tax avoidance: evidence from Tehran stock exchange

Cited by 7 publications

References 42 publications

Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?

Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?

The Effect of a Company’s Sustainable Competitive Advantage on Their Tax Avoidance Strategy—Focusing on Market Competition in Korea

Cause and Countermeasures on Tax Avoidance: From a Comparative View

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