TAX AGGRESSIVENESS, LIFE CYCLE STAGES AND LEVEL OF INVESTMENTS: AN ANALYSIS OF THE MODERATING EFFECT ON B3 LISTED COMPANIES
DOI:
https://doi.org/10.22561/cvr.v33i2.6796Keywords:
Tax Aggressivenesses, Investment Level, Return on InvestmentAbstract
The aim of present study was to analyze the moderating effect of the life cycle stages of firms (ECV) on the relationship between tax aggressiveness and the investment level of Brazilian companies listed in B3. The research descriptive, archival and quantitative approach used quarterly data of 2012-2020 of 3,853 observations of 270 companies available in the Thomson Reuters and COMDINHEIRO databases. The data were analyzed through descriptive statistics, differences tests, correlation analysis and regression with panel data using stata 16 software. The results showed that ECV have a moderating effect on relationship between tax aggressiveness and the investment level. It was observed that in companies in the Growth, Shakeout and Decline stages, tax aggressiveness has a positive effect on the level of investments, reinforcing the importance of tax planning. The results were consistent for different proxies of investment level and tax aggressiveness, including, using the tax burden measured from the Statement of Added Value (DVA). The findings provide important insights for accountants, managers, auditors and contribute to the discussion about the use of alternative proxies to identify tax aggressiveness and its impacts Brazilian context.
References
Alm, J., Liu, Y., & Zhang, K. (2019). Financial constraints and firm tax evasion. International Tax and Public Finance, 26(1), 71–102. https://doi.org/10.1007/s10797-018-9502-7
Araújo, R. A. de M., & Leite Filho, P. A. M. (2019). Reflexo do Nível de Agressividade Fiscal sobre a Rentabilidade de Empresas Listadas na B3 e NYSE. Revista Universo Contábil, 14(4), 115. https://doi.org/10.4270/ruc.2018430
Araújo, R. A. de M., Santos, L. M. da S., Leite Filho, P. A. M., & Camara, R. P. de B. (2018). Agressividade Fiscal: Uma comparação entre empresas listadas na NYSE e BM&FBOVESPA. Enfoque: Reflexão Contábil, 37(1), 39. https://doi.org/10.4025/enfoque.v37i1.32926
Arikan, A. M., & Stulz, R. M. (2016). Corporate Acquisitions, Diversification, and the Firm’s Life Cycle: Corporate Acquisitions, Diversification, and the Firm’s Life Cycle. The Journal of Finance, 71(1), 139–194. https://doi.org/10.1111/jofi.12362
Armstrong, C. S., Blouin, J. L., & Larcker, D. F. (2012). The incentives for tax planning. Journal of Accounting and Economics, 53(1–2), 391–411. https://doi.org/10.1016/j.jacceco.2011.04.001
Asiri, M., Al-Hadi, A., Taylor, G., & Duong, L. (2020). Is corporate tax avoidance associated with investment efficiency? The North American Journal of Economics and Finance, 52, 101143. https://doi.org/10.1016/j.najef.2020.101143
Baltagi, B. H. (2005). Econometrics Analysis of Panel Data (Third). John Wiley & Sons, Inc.
Baranova, V., & Janickova, L. (2012). Taxation of Corporations and Their Impact on Economic Growth: The Case of EU Countries. Journal of Competitiveness, 4(4), 96–108. https://doi.org/10.7441/joc.2012.04.07
Biddle, G. C., Hilary, G., & Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2–3), 112–131. https://doi.org/10.1016/j.jacceco.2009.09.001
Brennan, M. J. (2003). Corporate Investment Policy. In Handbook of the Economics of Finance (Vol. 1, p. 167–214). Elsevier. https://doi.org/10.1016/S1574-0102(03)01007-0
Brooks, C., Godfrey, C., Hillenbrand, C., & Money, K. (2016). Do investors care about corporate taxes? Journal of Corporate Finance, 38, 218–248. https://doi.org/10.1016/j.jcorpfin.2016.01.013
Chiachio, V. F. de O., & Martinez, A. L. (2019). Efeitos do Modelo de Fleuriet e Índices de Liquidez na Agressividade Tributária. Revista de Administração Contemporânea, 23(2), 160–181. https://doi.org/10.1590/1982-7849rac2019180234
Costa, F. M. da, & Amorim Júnior, R. L. (2020). Reorganizações Societárias e Agressividade Tributária. Revista Evidenciação Contábil & Finanças, 8(3), 5–22. https://doi.org/10.22478/ufpb.2318-1001.2020v8n3.51368
De Simone, L., Klassen, K., & Seidman, J. K. (2018). The Effect of Income-Shifting Aggressiveness on Corporate Investment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3232036
Diamond, P. A., & Mirrlees, J. A. (1971). Optimal Taxation and Public Production I: Production Efficiency. The American Economic Review, 61(1), 8–27.
Dickinson, V. (2011). Cash Flow Patterns as a Proxy for Firm Life Cycle. The Accounting Review, 86(6), 1969–1994. https://doi.org/10.2308/accr-10130
Faff, R., Kwok, W. C., Podolski, E. J., & Wong, G. (2016). Do corporate policies follow a life-cycle? Journal of Banking & Finance, 69, 95–107. https://doi.org/10.1016/j.jbankfin.2016.04.009
Gallemore, J., Maydew, E. L., & Thornock, J. R. (2014). The Reputational Costs of Tax Avoidance. Contemporary Accounting Research, 31(4), 1103–1133. https://doi.org/10.1111/1911-3846.12055
Gokalp, O. N., Lee, S.-H., & Peng, M. W. (2017). Competition and corporate tax evasion: An institution-based view. Journal of World Business, 52(2), 258–269. https://doi.org/10.1016/j.jwb.2016.12.006
Goldman, N. C. (2016). The effect of tax aggressiveness on investment efficiency [Dissertation of Doctor in Philosophy, University of Arizona]. http://hdl.handle.net/10150/612100
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2–3), 127–178. https://doi.org/10.1016/j.jacceco.2010.09.002
Hanlon, M., Maydew, E. L., & Shevlin, T. (2008). An unintended consequence of book-tax conformity: A loss of earnings informativeness. Journal of Accounting and Economics, 46(2–3), 294–311. https://doi.org/10.1016/j.jacceco.2008.09.003
Hasan, M. M., & Habib, A. (2017). Corporate life cycle, organizational financial resources and corporate social responsibility. Journal of Contemporary Accounting & Economics, 13(1), 20–36. https://doi.org/10.1016/j.jcae.2017.01.002
Hill, M. D., Kubick, T. R., Brandon Lockhart, G., & Wan, H. (2013). The effectiveness and valuation of political tax minimization. Journal of Banking & Finance, 37(8), 2836–2849. https://doi.org/10.1016/j.jbankfin.2013.04.002
Jacob, M. (2018). A note on tax research. Revista Contabilidade & Finanças, 29(78), 339–342. https://doi.org/10.1590/1808-057x201890280
Jacob, M., Michaely, R., & Müller, M. A. (2019). Consumption Taxes and Corporate Investment. The Review of Financial Studies, 32(8), 3144–3182. https://doi.org/10.1093/rfs/hhy132
Jaimovich, N., & Rebelo, S. (2017). Nonlinear Effects of Taxation on Growth. Journal of Political Economy, 125(1), 265–291. https://doi.org/10.1086/689607
Khurana, I. K., Moser, W. J., & Raman, K. K. (2018). Tax Avoidance, Managerial Ability, and Investment Efficiency. Abacus, 54(4), 547–575. https://doi.org/10.1111/abac.12142
Kubick, T. R., Lynch, D. P., Mayberry, M. A., & Omer, T. C. (2015). Product Market Power and Tax Avoidance: Market Leaders, Mimicking Strategies, and Stock Returns. The Accounting Review, 90(2), 675–702. https://doi.org/10.2308/accr-50883
Lamont, O. (1997). Cash Flow and Investment: Evidence from Internal Capital Markets. The Journal of Finance, 52(1), 83–109. https://doi.org/10.1111/j.1540-6261.1997.tb03809.x
Lennox, C., Lisowsky, P., & Pittman, J. (2013). Tax Aggressiveness and Accounting Fraud. Journal of Accounting Research, 51(4), 739–778. https://doi.org/10.1111/joar.12002
Li, C., Zhou, P., & Li, Y. (2019). Managerial overconfidence, overinvestment, and R&D spillover. Managerial and Decision Economics, 40(7), 858–861. https://doi.org/10.1002/mde.3051
Marchesi, R. F., & Zanoteli, E. J. (2020). Agressividade Fiscal e Investimentos no Mercado Acionário Brasileiro. Advances in Scientific and Applied Accounting, 1(1), 065–083. https://doi.org/10.14392/asaa.2020130304
Martinez, A. L. (2017). Agressividade Tributária: Um Survey da Literatura. Revista de Educação e Pesquisa em Contabilidade (REPeC), 11(0), 106–124. https://doi.org/10.17524/repec.v11i0.1724
Martinez, A. L., Lessa, R. C., & Moraes, A. D. J. (2014). Remuneração ds Auditores Perante a Agressividade Tributária e Governança Corporativa no Brasil. Revista Contabilidade e Controladoria, 6(3). https://doi.org/10.5380/rcc.v6i3.34593
Martinez, A. L., & Martins, V. A. M. (2016). Alavancagem Financeira e Agressividade Fiscal no Brasil. Revista de Contabilidade da UFBA, 10(3), 4. https://doi.org/10.9771/rc-ufba.v10i3.18383
Martinez, A. L., & Motta, F. P. (2020). Agressividade fiscal em sociedades de economia mista no Brasil. Revista Contemporânea de Contabilidade, 17(43), 136–148. https://doi.org/10.5007/2175-8069.2020v17n43p136
Martinez, A. L., & Reinders, A. P. G. S. (2018). Qual o Efeito da Agressividade Tributária na Rentabilidade Futura? Uma Análise das Companhias Abertas Brasileiras. Revista de Gestão e Contabilidade da UFPI, 5(1), 3. https://doi.org/10.26694/2358.1735.2018.v5ed16485
Martinez, A. L., Ribeiro, A. C., & Funchal, B. (2019). Sarbanes Oxley Act and Taxation: A study of the effects ob the tax aggressiveness of Brazilian firms. Contabilidade Vista & Revista, 30(1), 16. https://doi.org/doi.org/10.22561/cvr.v30i1.4525
Martinez, A. L., & Silva, R. F. (2017). Agressividade Fiscal e o Custo de Capital de Terceiros no Brasil. Revista de Gestão, Finanças e Contabilidade, 7(1), 240–251. https://doi.org/10.18028/2238-5320/rgfc.v7n1p240-251
McNichols, M. F., & Stubben, S. R. (2008). Does Earnings Management Affect Firms’ Investment Decisions? The Accounting Review, 83(6), 1571–1603. https://doi.org/10.2308/accr.2008.83.6.1571
Moreira, A. M. (2003). Elisão e Evasão Fiscal—Limites ao Planejamento Tributário. Revista da Associação Brasileira de Direito Tributário, 18.
Park, J., Ko, C. Y., Jung, H., & Lee, Y.-S. (2016). Managerial ability and tax avoidance: Evidence from Korea. Asia-Pacific Journal of Accounting & Economics, 23(4), 449–477. https://doi.org/10.1080/16081625.2015.1017590
Rodrigues, D. V., & Galdi, F. C. (2020). Taxa de imposto efetiva nas empresas brasileiras: Uma comparação entre as companhias abertas e fechadas. Revista Contemporânea de Contabilidade, 17(42), 57–69. https://doi.org/10.5007/2175-8069.2020v17n42p57
Slemrod, J. (1990). Optimal Taxation and Optimal Tax Systems. Journal of Economic Perspectives, 4(1), 157–178. https://doi.org/10.1257/jep.4.1.157
Wooldridge, J. (2011). Econometric Analysis of Cross Section and Panel Data (2a.). MIT-Massachussets Institute Technology.
Downloads
Published
How to Cite
Issue
Section
License
A submissão do texto para avaliação implica no compromisso de que o material não seja submetido a um outro periódico nacional ou internacional e autoriza, caso aprovado, a sua publicação.
Os artigos publicados são de responsabilidade dos autores não traduzindo, necessariamente, a opinião da revista. A reprodução dos artigos, total ou parcial, pode ser feita desde que citada esta fonte.
Considerando que o(s) autor(es) do texto concorda(m) com a sua publicação, caso o mesmo seja aprovado pela revista, sem que disso lhe seja devido qualquer remuneração, reembolso ou compensação de qualquer natureza, a Revista Contabilidade Vista & Revista através do Departamento de Ciências Contábeis da Faculdade de Ciências Econômicas da Universidade Federal de Minas Gerais, detém todos os direitos autorais dos textos publicados, conforme a legislação brasileira vigente.
Os direitos autorais para artigos publicados nesta revista são do autor, com direitos de primeira publicação para a revista. Em virtude de aparecerem nesta revista de acesso público, os artigos são de uso gratuito, com atribuições próprias, em aplicações educacionais e não-comerciais. A revista permitirá o uso dos trabalhos publicados para fins não-comerciais, incluindo direito de enviar o trabalho para bases de dados de acesso público.