Using a sample of 42,107 firm-year observations from 46 countries over the 2001-2010 period, I find that the average relation between tax avoidance and firm value (as measured by Tobin’s Q) is positive and significant. Motivated by two competing views on the value implications of tax avoidance, this study examines how investors perceive tax-avoidance behavior in an international setting. This study extends the existing literature by examining both the direct and indirect effect of institutional ownership on corporate tax avoidance in French companies by including CSR as a mediating variable. They recommend to the government to add regulations and restrictions to the structure of corporate ownership to control corporate tax avoidance in French companies. The findings have some policy and practical implications that may help regulators in improving the quality of transactions and in achieving more efficient market supervision. From the result of the Sobel test, this study indicated that CSR partially mediates the effect of institutional ownership on corporate tax avoidance. The greater the proportion of the institutional ownership, the lower the likelihood of tax avoidance usage. The results indicate that institutional ownership negatively affects tax avoidance. The direct and indirect effects between managerial ownership and tax avoidance were tested by using structural equation model analysis. This study uses panel data set of 200 French firms listed during the 2007–2018 period. The purpose of this paper is to investigate the direct and indirect relationship between institutional ownership and corporate tax avoidance using corporate social responsibility ( CSR ) as a mediating variable. The implication of this finding is that PMK-169 as a debt control regulation is considered effective to implement. By employing paired sample t-test analysis technique on 316 observations of 158 firms, it was proven that there was a significant difference in the debt-to-equity ratio as well as tax avoidance before and after the enactment of the regulation. This research was intended to analyse the effectiveness of PMK-169 for firms listed on the Bursa Efek Indonesia over 2015 (before) and 2016 (after). This is necessary to avoid thin capitalization practice that can lower state revenue from the taxation sector as it opens a tax avoidance opportunity for firms through interest-based debt. This regulation sets the debt-to-equity ratio allowable for firms in general at four to one (4:1) and has been effective from tax year 2016. In so doing, the Government has issued the Minister of Finance Regulation Number 169/PMK.010/2015 (PMK-169). This revenue will be constantly increased in the future. State revenue from the taxation sector remains dominating over revenue from other sources. Finally, the study concludes with suggestions for future research. various corporate governance arrangements and alternative firm value implications). Third, the main part of this study is devoted to the discussion of the extensive empirical findings on the determinants and consequences of corporate tax avoidance (e.g. size, capital structure, and asset mix) that have been shown to explain some variation in levels of tax avoidance. The second section briefly reviews numerous fundamental firm characteristics (e.g. In a first step, the origins of tax avoidance research in the corporate context are briefly summarized. Hence, the goal of this study is to assist both researchers who are new to this field as well as experienced readers by providing an updated overview of empirical studies investigating firms’ efforts to reduce their explicit tax burden.

Until and since then, work in this area has grown at a rapid pace and clearly remains a vibrant area of tax research. Nine years later, Hanlon and Heitzman labeled “corporate tax avoidance” as one of four “main areas” of tax research in accounting.

Shackelford and Shevlin traced the earlier developments of archival, microeconomic-based, empirical income tax research, pointing out a nascent interest for research on the determinants of tax aggressiveness. I provide a first comprehensive literature survey with an exclusive focus on empirical corporate tax avoidance research.

Summarize the steps of the cetr plan