Influence of Tax Planning and Earnings Management on the Business Performance of Listed Companies in the Stock Exchange of Thailand in SET100 Index
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Abstract
This study investigates the impact of tax planning for the effective corporate income tax rate and earnings management that influences the business performance of companies and the tax planning for the effective corporate income tax rate that influences the earnings management of 81 companies listed on the Stock Exchange of Thailand in the SET100 index group, excluding companies in the financial industry, by collecting secondary data from the year 2015 to 2020 , totaling 243 companies in each firm-year. The data was statistically analyzed using structural equation modeling (SEM) and path analysis techniques. The results found that tax planning for the effective corporate income tax rate has an influence on return on asset (ROA), but there is no influence on business value measured with Tobin’s Q ratio. Tax planning has an influence on earnings management, and earnings management has an influence on return on asset (ROA) and business value measured with Tobin’s Q ratio because companies have adopt tax planning strategies that comply with taxation laws, and executives choose to use accounting and tax policies to benefit all stakeholders and gain more trust from investors or shareholders.
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