The impact of double taxation on small firms' cash holdings

Di, Hui; Hanke, Steven A

doi:10.1080/09603107.2013.818211

Cited by 7 publications

(9 citation statements)

References 13 publications

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“…The results demonstrate that corporate tax avoidance has a positive effect on cash holdings, consistent with findings in M. Z. Frank and Goyal (2014), Di and Hanke (2013) during bad times. On this sample, corporate tax avoidance really enhances shareholder benefit consistent with ((Armstrong et al, 2015;Mihir A Desai & Dharmapala, 2009;Hanlon & Heitzman, 2010;Wilson, 2009).…”

Section: Resultssupporting

confidence: 88%

“…Following M. Z. Frank and Goyal (2014), Di and Hanke (2013), they indicated there is a positive relationship between corporate tax avoidance and corporate cash holdings in bad times. Bad times in this research was considered by market-to-book ratio under 33% of the distribution of industry.…”

Section: Tax Avoidance and Cash Holdingsmentioning

confidence: 99%

“…This investigation contributes to literature on tax avoidance in the following ways. Firstly, previous investigations on the relation between corporate tax avoidance and cash holdings only measured corporate tax avoidance through corporate effective tax rates (Di & Hanke, 2013;Kurniawan & Nuryanah, 2017;Wang, 2015). Therefore, this study measures all three aspects of corporate tax avoidance to assure the sustainability of our research results.…”

Section: Introductionmentioning

confidence: 99%

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Does corporate tax avoidance explain cash holdings? The case of Vietnam

Khương¹,

Nguyen²,

Minh³

et al. 2019

Economics &Amp; Sociology

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Recent tax evasion research has considered tax avoidance as an act of minimizing the amount of taxes to be paid through appropriate methods. This research aims to investigate the impact of corporate tax avoidance on the corporate cash holdings of the firms listed at Vietnam's stock market. The sample consists of 125 non-financial firms' data as of 2010-2016, with the total of 875 observations. The investigation utilizes three different tax avoidance measures to examine the robustness of the research results. We used GMM estimator to test our hypotheses. This research ascertains empirical evidence that tax avoidance has a significant positive relationship with cash holdings of listed firms in Vietnam. Three measurements of tax avoidance presented the same conclusions to the regression results.

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Section: Resultssupporting

confidence: 88%

Section: Tax Avoidance and Cash Holdingsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does corporate tax avoidance explain cash holdings? The case of Vietnam

Khương¹,

Nguyen²,

Minh³

et al. 2019

Economics &Amp; Sociology

View full text Add to dashboard Cite

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“…Z. Chen & Shane, 2014;R. R. Chen, El Ghoul, Guedhami, & Nash, 2018;Di & Hanke, 2013;Harford, Mansi, & Maxwell, 2012;Ogundipe, Ogundipe, & Ajao, 2012;Opler, Pinkowitz, Stulz, & Williamson, 1999, 2001. The significance of cash-related studies should increase in the light of recently dramatic increases in cash hoarding of firms and in the US and other countries (Almeida et al, 2014;Bates, Chang & Chi, 2018;Orlova & Rao, 2018;Phan, Nguyen, Nguyen, & Hegde, 2019;Da Cruz, Kimura, & Sobreiro, 2019).…”

Section: Introductionmentioning

confidence: 99%

Earnings management and cash holdings: Evidence from energy firms in Vietnam

Khương¹,

Liêm²,

Minh³

2020

Journal of International Studies

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Earnings management practices can exacerbate information asymmetry between stakeholders such as creditors, suppliers and investors and the focal firm. However, different types of earnings management can lead to diverse consequences due to their different associations with information asymmetry and agency cost. In this study, we investigate the relationship between accrual-based earnings management (AEM), real activities management (RAM) and corporate cash holdings. The research findings suggest that real activities management has a positive impact on cash holdings, while accruals-based earnings management, has a negative impact on this measure. Our findings are robust to different measures of AEM, RAM and model specifications. The positive link between RAM and cash holdings implies that significant diminutions in discretionary production costs and selling expenses permit managers to mask the genuine performance of the firm, thus increasing information asymmetry. On the other hand, the inverse relationship between AEM and cash holdings may prove that accruals can be helpful in alleviating the information differentials between the firm and other stakeholders. Based on the research findings, we provide several implications for relevant stakeholders regarding the link between earnings management and cash holdings.

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“…In recent decades, Di and Hanke (2013) found that firms having strong growth opportunities, riskier activities, and small size tend to hold comparatively more cash. On the other hand, firms having maximum access to the capital market, large sized with good credit ratings hold less cash.…”

Section: Corporate Cash Holdingsmentioning

confidence: 99%

Impact of compensation incentives on corporate cash holdings: Evidence from non-financial listed companies at Karachi Stock Exchange

Wahla¹,

Shah²,

Mehboob³

2015

Afr. J. Bus. Manage.

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This study examined the relationships between corporate cash holdings (corporate liquidity policy) and compensation incentives, offered by Karachi Stock Exchange listed non-financial companies, to their CEOs, Directors and Executives, keeping in view the managerial shareholding of the firm, levered capital structure and firm size. The regression results suggested that the CEO Compensation and Executive Compensation have a significant positive relationship with Corporate Cash Holdings. Size of the firm-a control variable-also has a significant positive relationship with Corporate Cash Holdings. We however, found that Leverage and Managerial Shareholdings have a significant negative relationship with the Corporate Cash Holdings. It is concluded that management of the companies do have influence on Corporate Cash Holdings positively, but at the expense of debt holders, as we have observed a significant negative relationship between leverage and corporate cash holdings viz-a-viz corporate liquidity policy. Another important conclusion drawn from the observed results is that managers having share in the ownership of the companies tend to influence the corporate liquidity policy of the companies.

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The impact of double taxation on small firms' cash holdings

Cited by 7 publications

References 13 publications

Does corporate tax avoidance explain cash holdings? The case of Vietnam

Does corporate tax avoidance explain cash holdings? The case of Vietnam

Earnings management and cash holdings: Evidence from energy firms in Vietnam

Impact of compensation incentives on corporate cash holdings: Evidence from non-financial listed companies at Karachi Stock Exchange

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