The effect of governance quality on tax avoidance: Evidence from Mongolia

• 영문명: The effect of governance quality on tax avoidance: Evidence from Mongolia
• 발행기관: 한국자료분석학회
• 저자명: Tsetsegdelger Enkh-Amgalan Altan-Erdene Batbayar
• 간행물 정보: 『Journal of The Korean Data Analysis Society (JKDAS)』Vol.24 No.5, 1607~1623쪽, 전체 17쪽
• 주제분류: 자연과학 > 통계학
• 파일형태: PDF
• 발행일자: 2022.10.31

영문 초록

In this study, we investigate the effect of governance quality on tax avoidance in entities. In our prior study(Enkh-Amgalan & Batbayar, 2022), we aimed to detect tax avoidance in all operating entities in Mongolia by employing the long-run cash effective tax rate(CASH ETR) developed by Dyreng, Hanlon, & Maydew(2008). The findings indicated that more than 80 percent of the sample entities consistently avoided taxes for the long-term regardless of their size and location. Thus, this study aims to examine the factors that affect the activity. To detect tax avoidance in entities, we apply effective tax rate measurements (GAAP ETR or CASH ETR) by Dyreng, Hanlon, & Maydew(2010). To do so, we exercise the two-stage least square and general method of moments regression models. Using panel data of 18,408 firm-year observations, corresponding to 3,068 unique entities covering the consecutive years of 2013-2019, we find a significant and negative relationship between governance quality and tax avoidance. For the robustness checks, we alter the estimation methods. The findings of the additional analyses are all robust to the main results.

목차

1. Introduction

2. Literature review

3. Methodology

4. Empirical results

5. Conclusion

References

키워드

tax avoidance GAAP effective tax rates cash effective tax rates worldwide governance indicators.