The Influence of Financial Distress on Tax Planning Among Listed Companies in the Three Industries with Highest Investment Promotion Applications to Thailand Board of Investment in 2023
DOI:
https://doi.org/10.14456/ajmt.2025.4Keywords:
Tax Planning, Financial Distress, Listed Companies in the Stock Exchange of ThailandAbstract
This research aims to study the level of financial distress, compare the tax planning of listed companies in the three industries with highest investment promotion applications to Thailand Board of Investment (BOI) in 2023, namely the Technology Industry, Industrial Products, and Agriculture and Food Industry, and analyze the influence of financial distress on tax planning of these companies. The population of the study was 217 companies, with 160 companies selected through purposive sampling. Statistical methods employed include One Sample T-test, Levene’s test, One-Way ANOVA, and Multiple Regression Analysis. The results revealed that companies in all three industries experienced high levels of financial distress. The effective tax rates resulting from tax planning did not differ significantly across industries but were significantly lower than statutory tax rates. Furthermore, financial distress exhibited a positive influence on tax planning, indicating that companies with higher financial distress tend to engage in more extensive tax planning. Government agencies can use these findings to formulate tax policies that promote investment in target industries during economic downturns.
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