Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Does corporate tax avoidance explain cash holdings? The case of Vietnam
Issue: Vol. 12, No 2, 2019
Published date: 06-2019 (print) / 06-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Nguyen Vinh Khuong
University of Economics and Law

Nguyen Tran Thai Ha
Saigon University

Mai Thi Hoang Minh
University of Economics Ho Chi Minh City

Phung Anh Thu
Nguyen Tat Thanh University
Keywords: corporate tax avoidance, corporate cash holdings, corporate effective tax rates, book-tax difference, Vietnam
DOI: 10.14254/2071-789X.2019/12-2/5
Index PUBMS: 62e3690f-ad3d-11e9-bbfd-fa163e0fa1a0
Language: English
Pages: 79-93 (15)
JEL classification: G32

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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