Corporate tax avoidance and firm value: evidence from Brazil
This paper investigates the relationship between corporate tax avoidance and firm value in Brazil. Although one might expect that tax avoidance practices result in value generation for the shareholder, alternative theories suggest that this not always happens; implicit agency costs that have been r...
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| Main Authors: | , |
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| Format: | Article |
| Language: | Portuguese |
| Published: |
Universidade Federal de Santa Catarina
2016-12-01
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| Series: | Revista Contemporânea de Contabilidade |
| Online Access: | https://periodicos.ufsc.br/index.php/contabilidade/article/view/34473 |
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| _version_ | 1849388633877905408 |
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| author | Silvio Luis Leite Santana Amaury José Rezende |
| author_facet | Silvio Luis Leite Santana Amaury José Rezende |
| author_sort | Silvio Luis Leite Santana |
| collection | DOAJ |
| description |
This paper investigates the relationship between corporate tax avoidance and firm value in Brazil. Although one might expect that tax avoidance practices result in value generation for the shareholder, alternative theories suggest that this not always happens; implicit agency costs that have been recently detected by the literature, may exceed the tax saving benefits, causing value destruction. Verifying what happens in Brazil, it was performed a panel data analysis including 323 companies traded in the stock market from 2006 to 2012, totalizing 1,704 firm-year observations. It was adopted BTD, controlled by accruals, as proxy for tax avoidance and Tobin’s q as proxy for firm value. The results show that tax avoidance and firm value are negatively associated. It was also evaluated the corporative governance effect, finding limited disclosures that can mitigate the value destruction.
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| format | Article |
| id | doaj-art-262f57043baa4d508fde776c734f4a7d |
| institution | Kabale University |
| issn | 1807-1821 2175-8069 |
| language | Portuguese |
| publishDate | 2016-12-01 |
| publisher | Universidade Federal de Santa Catarina |
| record_format | Article |
| series | Revista Contemporânea de Contabilidade |
| spelling | doaj-art-262f57043baa4d508fde776c734f4a7d2025-08-20T03:42:14ZporUniversidade Federal de Santa CatarinaRevista Contemporânea de Contabilidade1807-18212175-80692016-12-01133010.5007/2175-8069.2016v13n30p114Corporate tax avoidance and firm value: evidence from BrazilSilvio Luis Leite Santana0Amaury José Rezende1Universidade de São PauloUniversidade de São Paulo This paper investigates the relationship between corporate tax avoidance and firm value in Brazil. Although one might expect that tax avoidance practices result in value generation for the shareholder, alternative theories suggest that this not always happens; implicit agency costs that have been recently detected by the literature, may exceed the tax saving benefits, causing value destruction. Verifying what happens in Brazil, it was performed a panel data analysis including 323 companies traded in the stock market from 2006 to 2012, totalizing 1,704 firm-year observations. It was adopted BTD, controlled by accruals, as proxy for tax avoidance and Tobin’s q as proxy for firm value. The results show that tax avoidance and firm value are negatively associated. It was also evaluated the corporative governance effect, finding limited disclosures that can mitigate the value destruction. https://periodicos.ufsc.br/index.php/contabilidade/article/view/34473 |
| spellingShingle | Silvio Luis Leite Santana Amaury José Rezende Corporate tax avoidance and firm value: evidence from Brazil Revista Contemporânea de Contabilidade |
| title | Corporate tax avoidance and firm value: evidence from Brazil |
| title_full | Corporate tax avoidance and firm value: evidence from Brazil |
| title_fullStr | Corporate tax avoidance and firm value: evidence from Brazil |
| title_full_unstemmed | Corporate tax avoidance and firm value: evidence from Brazil |
| title_short | Corporate tax avoidance and firm value: evidence from Brazil |
| title_sort | corporate tax avoidance and firm value evidence from brazil |
| url | https://periodicos.ufsc.br/index.php/contabilidade/article/view/34473 |
| work_keys_str_mv | AT silvioluisleitesantana corporatetaxavoidanceandfirmvalueevidencefrombrazil AT amauryjoserezende corporatetaxavoidanceandfirmvalueevidencefrombrazil |