Tax aggressiveness and performance of publicly traded companies in Brazil: An analysis of the pandemic period

The purpose of this study was to empirically determine the effect of profitability by proxies Return On Assets (ROA), Return On Equity (ROE) and Return On Sale (ROS) on tax aggressiveness with Corporate Social Responsibility (CSR) as a moderating variable. The sample for this study was mining sector companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2020 period, using a non-probability sampling method with a purposive sampling technique which produced 20 sample companies. In testing the hypothesis using Moderated Regression Analysis (MRA). The results of this study are only ROS which has a positive effect on tax aggressiveness, while ROA, ROE and CSR have no effect on tax aggressiveness. CSR is not able to moderate the relationship between ROA, ROE and ROS on tax aggressiveness. The only control variable is company size which has an effect on tax aggressiveness, while firm size and leverage have no effect on tax aggressiveness.
 
 Keywords: Return On Asset (ROA), Return On Equity (ROE), Return On Sales (ROS), Corporate Social Responsibility (CSR), Tax Aggressiveness

I examine differences between effective tax rates (ETRs) and book-tax differences (BTDs) as alternative measures of corporate tax avoidance or tax aggressiveness. When BTDs are scaled by pretax income, the scaled BTD is statistically equivalent to the ETR. When BTDs are scaled by assets the resulting BTD measure is equivalent to the ETR multiplied by the firm's pretax return on assets (ROA), potentially adding measurement error unless ROA differences are part of the research design. Adding a control variable for ROA doesn't solve this problem. Any theoretical reason to use BTDs rather than ETRs in empirical research should be based on the effect of ROA. Simulated regression results demonstrate that, when ETR is the correct theoretical measure, BTDs don't provide any information beyond that provided in ETRs, and scaling by assets results in lower regression coefficients, potentially reflecting measurement error.

Summaries of Papers in This Issue

This study examines the impact of electronic payment system on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are mobile banking, quick response code payment, automated teller machine, digital wallet, credit cards and point of sales. The study is based on primary and secondary data of 8 commercial banks with 130 respondents. To achieve the purpose of the study, structured questionnaire is prepared. Secondary data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of electronic payment system on the profitability of Nepalese commercial banks. The study showed that mobile banking has a positive relationship with return on assets and return on equity. It indicates that better the mobile banking services provided by banks, higher would be the return on assets and return on equity. Similarly, QR payment has a positive relationship with return on assets and return on equity. It indicates that more the payment through QR payment services, higher would be the return on assets and return on equity. Likewise, ATM banking has a positive relationship with return on assets and return on equity. It indicates that better the ATM services provided by the banks, higher would be the return on assets and return on equity. Further, digital wallet has a positive relationship with return on assets and return on equity. It indicates that higher the practices of digital wallet banking, higher would be the return on assets and return on equity. In addition, credit card has a positive relationship with return on assets and return on equity. It indicates that higher the number of payments through credit card, higher would be the return on assets and return on equity. Moreover, POS banking has a positive relationship with return on assets and return on equity. It indicates that practice of point of sales banking leads to increase in return on assets and return on equity.

This study examines the impact of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non-performing loans, capital adequacy ratio, net interest margin, loan-to-deposit ratio, debt to equity ratio, and bank size. The study is based on secondary data of 15 commercial banks with 105 observations for the study period from 2015/16 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, capital adequacy ratio has a negative impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to decrease in return on assets and return on equity. Likewise, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In contrast, loan-to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan-to-deposit ratio, lower would be the return on assets and return on equity. In addition, debt-to-equity ratio has a negative impact on return on assets and return on equity. It indicates that increase in debt-to-equity ratio leads to decrease in return on assets and return on equity. Moreover, bank size has a positive impact on return on assets and return on equity. It indicates that larger the bank size, higher would be the return on assets and return on equity.

This study examines the effect of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are bank size, operating efficiency, net interest margin, non-performing loan, capital adequacy ratio, and loan-to-deposit ratio. The study is based on secondary data of 12 commercial banks with 108 observations for the study period from 2014/15 to 2022/23. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets. It indicates that higher the non-performing loans, lower would be the return on assets. In contrast, non-performing loan has a positive impact on return on equity. It indicates that increase in non-performing loan leads to increase in return on equity. Similarly, capital adequacy ratio has a positive impact on return on assets. It indicates that higher the capital adequacy ratio, higher would be the return on assets. However, capital adequacy ratio has a negative impact on return on equity. It indicates that higher the capital adequacy ratio, lower would be the return on equity. Further, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In addition, loan to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan to deposit ratio, lower would be the return on assets and return on equity. Similarly, operating efficiency has a negative impact on return on assets. It indicates that higher the operating efficiency, lower would be the return on assets. In contrast, operating efficiency has a positive impact on return on equity. It indicates that increase in operating efficiency leads to increase in return on equity. In addition, bank size has a negative impact on return on assets and return on equity. It indicates that larger the bank size, lower would be the return on assets and return on equity.

The objective of this research is to obtain empirical evidence regarding the influence of profitability, liquidity, inventory intensity, related party debt, company size, leverage, and capital intensity on tax aggressiveness. This research utilizes a sample of all consumer non-cyclicals and consumer cyclicals companies listed on the Indonesia Stock Exchange during the period 2020-2022, with 66 consumer non-cyclicals and consumer cyclicals companies selected as the sample for this research. The sample selection employs the purposive sampling method with a total of 198 years of data, and the analysis is conducted using multiple linear regression. The results of this research showed that the profitability and company size variables have an influence on tax aggressiveness. The profitability (ROA) coefficient has a negative sign so it can be interpreted that profitability has a negative effect on the Effective Tax Rate (ETR). The results of this research show that the higher the Return on Assets (ROA) value produced by a company, the lower the company's ETR. The lower the ETR indicates the company is more aggressive, which means the higher the level of profitability, the higher the company's tax aggressiveness. Meanwhile, the liquidity, inventory intensity, related party debt, leverage, and capital intensity variables do not have an influence on tax aggressiveness.

This study examines the effects of accounting information system on organization profitability in Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non performing loan (NPL), loan loss provision (LLP), capital adequacy ratio (CAR), credit to deposit rate (CRR) and bank size (BS). The study is based on secondary data of 15 commercial banks with 120 observations for the study period from 2014/15 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of effects of accounting information system on organizational profitability in Nepalese commercial banks. The study shows that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, credit to deposit ratio has a negative impact on return on assets and return on equity. It indicates that increase in credit to deposit ratio leads to decrease in return on assets and return on equity. Likewise, loan loss provision has a negative impact on return on assets and return on equity. It indicates that increase in loan loss provision leads to decrease in return on assets and return on equity. However, capital adequacy ratio has a positive impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to increase in return on assets and return on equity. Further, bank size has a negative impact on return on assets and return on equity. It indicates that increase in bank size leads to decrease in return on assets and return on equity.

This study aims to analyze the effect of Net Profit Margin, Return On Assets, and Return On Equity on Stock Price of consumption industrial sector companies listed in Indonesian Sharia Stock Index at Indonesia Stock Exchange. The method of growth analysis which used is quantitative descriptive method. Whereas to find out the effect of Net Profit Margin, Return On Assets, and Return On Equity for Stock Price partially or simultaneously use descriptive method and multiple linear regression analysis technique. The study results that obtained show that partially Net Profit Margin and Return On Assets do not affect stock price, whereas Return On Equity effects on stock price. Simultaneously Net Profit Margin, Return On Assets, and Return On Equity affect stock prices. Key words: Net Profit Margin, Return On Assets, Return On Equity, and Stock Price

This study aims to see the effect of Net Profit Margin, Return On Assets and Return On Equity. This study uses secondary data. The sample used is nine metal companies that are on the Southeast Asian Stock Exchange. The independent variables in this study are Net Profit Margin, Return On Assets and Return On Equity. Sampling in this study using purposive sampling technique. The data analysis method used is the classical assumption test, hypothesis test, F test and t test. Based on the research results, it is known that Net Profit Margin, Return On Assets and Return On Equity do not have a significant effect on stock prices. The results of the F test indicate that Net Profit Margin, Return On Asset and Return On Equity together do not have a significant effect on stock prices. Recommendations for further research should be able to convince investors by increasing the value of Net Profit Margin (NPM), Return On Asset (ROA), Return On Equity (ROE). Because the higher the value of Net Profit Margin (NPM), Return On Asset (ROA), Return On Equity (ROE) and similar research is expected to increase the research sample or replace other variables related to stock prices and use a test tool other than multiple regression.

This study examines the determinants of profitability in Nepalese insurance companies. Return on assets (ROA) and return on equity (ROE) are the dependent variables. The selected independent variables are firm size, liquidity, tangibility, firm age, premium growth and total capital. The study is based on secondary data of 27 insurance companies with 108 observations for the study period from 2018/19 to 2021/22. The data were collected from the annual reports of selected Nepalese insurance companies. The regression models are estimated to test the significance and effect of firm specific factors on the profitability of Nepalese insurance companies. The study showed that liquidity ratio has a negative impact on return on assets and return on equity. It means that increase in liquidity ratio leads to decrease in return on assets and return on equity. In contrast, assets tangibility has a positive impact on return on assets and return on equity. It shows that higher the assets tangibility, higher would be the return on assets and return on equity. Similarly, firm age has a positive impact on return on assets and return on equity. It means that increase in firm age leads to increase in return on assets and return on equity. Furthermore, premium growth has a positive impact on return on equity. It means that higher the premium growth, higher would be the return on equity. In addition, total capital has the positive impact on return on assets. It indicates that higher the total capital, higher would be the return on assets and return on equity.

Purpose of this study was to analyze the influence of knowledge acquisition on organizational performance based on return on equity and return on assets of state owned commercial enterprises in Kenya. This study was based on explanatory and descriptive research designs since they were more appropriate to test the hypotheses. The target population comprised of 275 members of top management team of 55 commercial state-owned enterprises in Kenya, as at 31 st October 2016. The study utilized simple random sampling to select a sample of 268 members of top management team in the 55 commercial state-owned enterprises. Response rate of 71% was obtained and analytical tests conducted were Pearson correlation coefficients, One Way ANOVA, and Multiple linear regression. The correlation coefficients for return on equity was ( r = -0.052, p = 0.481) and return on asset was ( r = 0.075, p = 0.309) on knowledge acquisition respectively. Result for One-Way ANOVA on two segments of state owned commercial enterprises was, F (14, 173) = 3.104, p =0.000. The regression coefficients on return on equity were: unmoderated model; β= -0.957, t (-1.392), p>0.05 and moderated model; β= -4.957, t (-2.567), p<0.05 respectively. While the regression coefficients on return on assets were: unmoderated model; β=0.0002, t (-0.001), p=0.999 and moderated models; β= -0.088, t (-0.118), p=0.906 respectively. The study concludes there is significant influence of knowledge acquisition and organizational performance based on return on equity of state owned commercial enterprises but there is no significant influence of knowledge acquisition on organizational performance based on return on assets of state owned commercial enterprises in Kenya. Keywords: Knowledge acquisition, Return on Assets (ROA), Return on Equity (ROE) DOI : 10.7176/EJBM/11-3-01

Tax aggressiveness represents the most advantageous legal method of taxation chosen by taxpayers, after exploring the ambiguities and uncertainties contained in the tax legislation. In this sense, this study aims to verify the influence of the tax aggressiveness level on the profitability of publicly traded companies of industrial goods listed on B3 (Brazilian Stock Market) in the period from 2010 to 2019. The information was collected in the Economatica@ database and 52 companies were analyzed by means of multiple and quantile regressions. The results pointed out, based on the mean functions of the MQO method, that the level of tax aggressiveness does not influence the profitability. However, when considering the conditional quantile functions of the MEA method, the GAAP ETR starts to present statistical significance and negative coefficient as expected for the Q50 and Q75 quintiles of NM (Net Margin), ROA (Return on Assets) and ROE (Return on Equity) and for the Q90 quintile of NM and ROA and then, the hypotheses H1a, H1b and H1d that the tax aggressiveness level positively influences the NM, the ROA and the ROE of the investigated companies are not rejected. Having said that, in general, it is concluded that the higher the tax aggressiveness the higher the profitability of the publicly traded companies of industrial goods listed on B3 and that, even with issues not fully resolved, the theme can be very useful for various users of accounting information, such as tax legislators, regulators, investors, company directors and academic researchers.

This study aims to analyze the effect of profitability and leverage on tax aggressiveness in companies listed in the LQ45 index during the 2022–2024 period. Tax aggressiveness is measured using the Effective Tax Rate (ETR), profitability is measured by Return on Assets (ROA), and leverage is measured using the Debt to Equity Ratio (DER). The sample was selected using purposive sampling, resulting in 72 observations. Data analysis was performed using multiple linear regression with E-Views 12. The results show that both profitability and leverage have no significant effect on tax aggressiveness, either partially or simultaneously. The coefficient of determination (R²) of 0.013631 indicates that only 1.36% of the variation in tax aggressiveness can be explained by profitability and leverage, while the remaining 98.64% is influenced by other factors outside the model. These findings suggest that the level of profit and debt does not determine tax aggressiveness behavior, as managerial decisions are more influenced by factors such as corporate governance, creditor supervision, as well as considerations of reputation and legal risk.

This study examines the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the dependable variables. The independent variables are succession planning, training and development, employee motivation, organizational culture and employee empathy. The study used primary and secondary sources of data. The primary source of data is used to assess the opinions of the respondents regarding the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. The study is based on primary data of 131 respondents. The secondary source of data is collected from 27 Nepalese commercial banks for the period from 2014/15 to 2020/21. The data are collected from Economic Survey published by Ministry of Finance, Quarterly Economic Bulletin published by Nepal Rastra Bank and annual report of NRB supervision and economic bulletin of World Bank. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. The study showed that succession planning has a positive impact on return on assets and return on equity. It indicates that increase in succession planning leads to increase on return on assets and return on equity. Likewise, training and development has a positive impact on return on assets and return on equity. It indicates that increase in training and development facilities leads to increase on return on assets and return on equity. Similarly, employee motivation has a positive impact in performance. It means that fair employee motivation in the organization leads to increase on return on assets and return on equity. Moreover, organizational culture has a positive impact on return on assets and return on equity. It indicates that better the organizational culture, higher would be return on assets and return on equity. In addition, employee empathy has a positive impact in performance. It reveals that higher the employee empathy, higher would be the return on assets and return on equity.