Home / Business

The impact of tax planning on enterprise value: The case of non-financial enterprises listed in Vietnam - 2


LIST OF VARIABLE SYMBOLS

------------------



Variable symbol

Variable name

English

Vietnamese

CAPINT

Capital intensive

Capital investment level

FV

Firm value

Enterprise value

LEV

Leverage

Financial leverage

SIZE

Firm size

Business size

SOWN

State ownership

State ownership

TP

Tax planning

Tax planning

Maybe you are interested!

The impact of tax planning on enterprise value: The case of non-financial enterprises listed in Vietnam - 2


INDEX

COMMITMENT I

ACKNOWLEDGEMENTS II

SUMMARY III

LIST OF ABBREVIATIONS V

LIST OF VARIABLE SYMBOLS VII

TABLE OF CONTENTS VIII

LIST OF TABLES XI

LIST OF FIGURES XII

Chapter 1: INTRODUCTION 1

1.1. REASONS FOR CHOOSING STUDY 1

1.2. RESEARCH OBJECTIVE 2

1.2.1. General objective 2

1.2.2. Specific objectives 2

1.3. RESEARCH QUESTION 3

1.4. SUBJECTS AND SCOPE OF RESEARCH 3

1.4.1. Research subject 3

1.4.2. Scope of research 3

1.5. DATA AND RESEARCH METHODS 4

1.5.1. Data 4

1.5.2. Research method 4

1.6. SCIENTIFIC SIGNIFICANCE AND NEW CONTRIBUTIONS OF TOPIC 5

1.7. GENERAL STRUCTURE OF TOPIC 9

CHAPTER 1 SUMMARY 11

Chapter 2: THEORETICAL BASIS AND EXPERIMENTAL RESEARCH 12

2.1. OVERVIEW OF TAX PLANNING, STATE OWNERSHIP AND ENTERPRISE VALUE 12

2.1.1. Tax plan 12

2.1.2. State ownership 28

2.1.3. Enterprise value 30

2.2. THEORETICAL BASIS OF THE IMPACT OF TAX PLANNING ON ENTERPRISE VALUE AND THE REGULATORY ROLE OF STATE OWNERSHIP 32

2.2.1. Agency theory 33

2.2.2 Management theory 37

2.2.3 Supporting hand theory and motivated intervention hand theory 38

2.2.4. Political cost theory and political power theory 39

2.2.5. Discuss the theory explaining the impact of tax planning on enterprise value and the regulatory role of state ownership 41

2.3. RELATED EMPIRICAL STUDIES 46

2.3.1. Empirical studies on the impact of tax planning on enterprise value 47

2.3.2. Studies on the impact of tax planning on enterprise value when there are moderating variables 58

2.3.3. Identifying research gaps 69

CHAPTER 2 SUMMARY 71

Chapter 3: RESEARCH MODELS AND METHODS 72

3.1. RESEARCH PROCESS 72

3.2. RESEARCH MODEL 74

3.2.1. Overview of research model 74

3.2.2. Explanation of variables and research hypotheses 76

3.3. RESEARCH SAMPLE AND DATA 88

3.3.1. Research sample 88

3.3.2. Research data 89

3.4. RESEARCH METHODOLOGY 89

3.4.1. Qualitative research methods 89

X

3.4.2. Quantitative research methods 90

CHAPTER 3 SUMMARY 93

Chapter 4: RESEARCH RESULTS AND DISCUSSION 94

4.1. DESCRIPTIVE STATISTICS OF VARIABLES 94

4.2. CORRELATION ANALYSIS 95

4.2.1. Correlation coefficient matrix 95

4.2.2. Graphical correlation analysis based on the 97 mean value

4.3. REGRESSION ANALYSIS 101

4.3.1. Analysis of regression results of the first model 101

4.3.2. Regression analysis of the second model 109

4.4. DISCUSSION OF RESEARCH RESULTS 113

4.4.1. Impact of tax planning on enterprise value 113

4.4.2. The regulatory role of state ownership on the impact of planning

tax on enterprise value 115

4.4.3. Impact of other factors on enterprise value 117

CHAPTER 4 SUMMARY 122

Chapter 5: CONCLUSION AND SUGGESTIONS, RECOMMENDATIONS 123

5.1. CONCLUSION 123

5.2. SUGGESTIONS AND RECOMMENDATIONS 127

5.2.1. For investors 127

5.2.2. For business administrators 128

5.2.3. For relevant state agencies 130

5.2.4. For researchers 133

5.3. LIMITATIONS AND FURTHER RESEARCH DIRECTIONS OF TOPIC 135

5.3.1. Topic limitations 135

5.3.2. Further research directions of topic 135

CHAPTER 5 SUMMARY 137

REFERENCES I

APPENDIX 1 XV

APPENDIX 2 ..............................................................................................................


LIST OF TABLES

Table 2.1: Measurement indicators of KHT 18

Table 2.2: Research statistics on the impact of KHT on GTDN 54

Table 2.3: Research statistics on the influence of moderating factors on the relationship between KHT and GTDN 62

Table 3.1: Measurement of research variables and expected sign 73

Table 3.2. Statistics of the number of enterprises in the research sample 88

Table 4.1. Descriptive statistics of variables 94

Table 4.2. Correlation matrix 96

Table 4.3. Regression results by Pooled OLS, FEM and REM - Model 1 102

Table 4.4. Redundant Fixed Effects Test – Model 1 103

Table 4.5. Breusch-Pagan Test – Model 1 103

Table 4.6. Hausman Test – Model 1 104

Table 4.7. Variance inflation factor – Model 1 105

Table 4.8. Heteroscedasticity Test – Model 1 105

Table 4.9. GLS regression results – Model 1 106

Table 4.10. Regression results by Pooled OLS, FEM and REM - Model 2 107

Table 4.11. Redundant Fixed Effects Test – Model 2 109

Table 4.12. Breusch-Pagan Test – Model 2 109

Table 4.13. Hausman Test – Model 2 110

Table 4.14. Heteroscedasticity Test – Model 2 111

Table 4.15. GLS regression results – Model 2 111

Table 5.1. Expectations and results of research hypotheses 125


LIST OF IMAGES


Figure 2.1 The SAVANT framework in planning a project by Karayan & Swenson (2007) 24

Figure 2.2 Tax Shifting Opportunities for Related Parties 26

Figure 2.3. Agency theory – Aspect of conflict of interest between shareholders and managers 37

Figure 2.4 Management Theory: Unity of Goals 38

Figure 2.5 Theoretical framework on the impact of KHT on GTDN and its regulatory role

of state ownership in Vietnam 46

Figure 3.1. Research process 73

Figure 4.1: Average by year of KHT and GTDN of the entire sample 97

Figure 4.2. Average KHT and GTDN of enterprises with state-controlled ownership 98

Figure 4.3. Average KHT and GTDN of enterprises without state-controlled ownership 99


Chapter 1: INTRODUCTION


1.1. REASONS FOR CHOOSING THE STUDY

Tax planning (KHT), in English is Tax planning, is a set of activities planned towards the legal exploitation of policies and mechanisms to create tax benefits, thereby expecting to create added value for the company. The goal of KHT is to optimize the amount of tax payable by reducing, extending, exempting and deferring taxes. Accordingly, KHT can bring about increased benefits, positively affecting the market value of the company, while also increasing the value of the owner's assets.

In the financial planning of companies, KHT is identified as an indispensable and important part, because tax costs are recorded and are not directly priced, directly affecting the company's profits. According to management theory, financial managers will try to save costs to bring the company more profits, which is the basis for increasing enterprise value (GTDN).

Many previous empirical studies have evaluated the impact of tax avoidance on corporate value, however, the results of these studies are inconsistent, including: (i) tax avoidance positively affects corporate value. (ii) tax avoidance negatively affects corporate value. (iii) tax avoidance does not affect corporate value. In other words, tax avoidance of enterprises in different contexts has/does not affect corporate value, especially this relationship depends on corporate governance characteristics. Desai & Dharmapala (2009) is the first study to propose the need to evaluate the impact of governance factors - represented by ownership of institutional investors on the relationship between tax avoidance and corporate value. However, Desai & colleagues (2009) and previous studies only relied on traditional agency theory, the issue of conflict of interest between owners and managers, to explain the influence of KHT on corporate value without mentioning the issue between large shareholders and small shareholders or the conflict of interests.


It is the shareholders who control the State in the trade-off between the purpose of tax collection and the purpose of increasing the value of shares.

In Vietnam, the State plays an important role in listed enterprises, the State is a shareholder, and at the same time the issuer of tax policies and tax collection. Thus, performing two functions at the same time, how will the role of the State affect the relationship between KHT and the current listed enterprise value? This is a research topic that has not been explored in previous related studies, especially for the case of Vietnam.

Therefore, the thesis will study the mechanism through which KHT affects the value of non-financial listed enterprises in Vietnam. Does KHT affect the value of enterprises in Vietnam? What is the regulatory role of State ownership in the relationship between KHT and enterprise value? Is the level of State ownership a new factor added to clarify the impact of KHT on enterprise value?

The thesis continues to expand more than previous empirical studies on the interpretation of the impact of tax planning on corporate value, mainly based on modern agency theory, manager theory and other related theories. In which, modern agency theory points out the contradiction of state shareholders when choosing between the tax collection goal and the asset price increase goal. Therefore, the thesis topic on " The impact of tax planning on corporate value: The case of non-financial enterprises listed in Vietnam " ensures both scientific significance, practical value and new contributions.

1.2. RESEARCH OBJECTIVES

1.2.1. General objectives

The general research objective of the topic is to propose a KHT based on the assessment of the impact of KHT on corporate value for the case of non-financial enterprises listed in Vietnam.

1.2.2. Specific objectives


Based on the above general research objectives, the topic identifies specific research objectives as follows:

Comment


Agree Privacy Policy *