Avoidance Costs Research Articles

Gauging the Connection Between Ownership Structure and Tax Avoidance of Listed Innovative Firms in Nigeria

Understanding the importance of technology, innovation and new models in business processes, this study examines the connection between ownership structure and tax avoidance of innovative firms. Specifically, the paper examines the influence of managerial and institutional ownership on the tax avoidance activities of innovative firms in Nigeria. The study argued that Effective Tax Rate (ETR) and book tax difference (BTD) measures are more appropriate to measure tax burdens due to the Nigerian corporate tax system. A sample of 420 firm-year observations of selected firms from 2011–2022 was analyzed using panel-corrected regression (PCSE). The study established that managerial ownership has a significant positive effect on tax avoidance of innovative firms, suggesting that managers decrease the potential of aggressive tax planning because the associated cost of tax avoidance outweighs its tax benefit in the long run. While institutional ownership is found to have a significant negative influence on ETR and BTD, suggesting institutional shareholders encourage firms to engage in aggressive tax planning and therefore reduce the level of tax expenses. The implication of these findings is that firms should institute more effective monitoring by having more institutional investors to minimize tax liability. This helps in minimizing agency costs, thereby reducing tax costs and improving after-tax earnings. Certainly, these findings confirm the theoretical postulate of agency theory and stakeholder theory in relation to ownership and earnings management. Thus, our findings make a unique contribution to the literature by proving that tax avoidance decreases because of the associated cost of debt.

Advancing syngas production: A comparative techno-economic analysis of ICCU and CCU technologies for CO2 emission reduction

The Paris Agreement stresses the need to cut CO2 emissions, a global priority. Innovative methods like carbon capture and utilization (CCU) aim to limit the temperature increase to 1.5 °C by 2100. Traditional CCU involves separate CO2 collection and purification steps, while integrated carbon capture and utilization (ICCU) streamlines the process by capturing CO2 using CaO adsorbents and using it with CH4 on-site to produce syngas. ICCU reduces CO2 conversion costs by eliminating intermediaries, potentially resulting in lower operational costs than traditional CCU. This study employs the Aspen Plus model to evaluate ICCU and CCU processes, analyzing parameters such as CaCO3 consumption, purge production, annual CO and H2 production, energy balance, total annual costs, and CO production costs. Results show that ICCU generates 1.39 million tons of CO annually, with lower CH4 and CaCO3 consumption along with improved energy efficiency at 46.75% compared to CCU for 42.49%. ICCU incurs an annual capital outlay of $554.92 million with $396.94/ton of CO, while CCU costs M$853.10/year with $325.11/ton of CO. Notably, ICCU reduces costs of CO2 avoidance to $380.44/ton compared to $513.59/ton for CCU. These findings highlight ICCU as a more efficient and cost-effective approach to reducing CO2 emissions, aligning with the Paris Agreement goals and providing insights for future deployment and regulatory considerations. The use of Aspen Plus simulation software has been instrumental in facilitating the analysis, modeling, and validation of these conclusions.

Research on the Give-Way Ships Determination Based on Field Theory

The Convention on the International Regulations for Preventing Collisions at Sea, 1972 (COLREGs) stipulates ships’ obligations when encountering each other. However, human action remains a primary cause of collision accidents. In the complex environment of mixed navigation involving MASS and manned ships, the applicability of the COLREGs for determining the give-way ship has faced certain challenges. Therefore, this study proposes a model for determining the give-way ship, combining ship characteristics and using an asymmetric Gaussian function to construct the potential field of stand-on ships from the perspective of give-way ships. It constructs the cost function based on field theory to determine the respective avoidance costs for both ships in a crossing situation, with the ship incurring the lowest cost selected as the give-way ship, followed by a case study to validate the model. The research is dedicated to coordinating avoidance action objectively, effectively reducing maritime collisions, and providing exploratory guidance for collision avoidance decision-making in future mixed navigation environments.

Identifying the proximal cue(s) for pupal color variation in the bordered patch butterfly, Chlosyne lacinia (Lepidoptera: Nymphalidae)

Abstract Coloration is a multifaceted trait that serves various functions, including predator defense, thermoregulation, and immune response, among others. We investigated pupal color variation in Chlosyne lacinia pupae, focusing on identifying the cue that influences variation in melanization. Through laboratory experiments, we demonstrated that pupae reared on black backgrounds exhibited significantly higher melanization compared to those on white backgrounds. Additionally, black pupae experienced longer developmental periods, suggesting a trade-off between defense and developmental time. Our findings support crypsis as a likely evolutionary driver for increased melanization in response to substrate color. We discuss potential implications for predator avoidance, immune response, and developmental costs associated with melanization. This study provides insights into the adaptive significance of pupal melanization in response to environmental cues, shedding light on the complex interplay between life history traits in butterflies.

Optimizing economic feasibility of CO2 capture processes with rotating packed bed (RPB): Strategies for scale and modularization

Rotating Packed Bed (RPB) technology is increasingly recognized in the field of carbon capture for its potential to broaden application scopes and significantly reduce capital expenditures by minimizing packing volume. However, the commercialization of RPB-based CO2 capture presents several challenges at the process level, including enhancing energy efficiency, refining equipment design, and achieving scalability. Given the mechanical constraints, designing excessively large RPB units may be impractical. Thus, the economic scalability of RPB-based CO2 capture under practical constraints remains an unresolved issue. This study explores the cost-optimal CO2 capture scale through rigorous process simulation using 30-70 wt% monoethanolamine (MEA) solvents. It optimizes the process design and operating parameters to minimize the specific CO2 avoidance costs, within the bounds of practical RPB design limitations. The findings suggest that a capture scale of 100–200 Tons Per Day (TPD) is cost-optimal when using 50 wt% MEA for flue gases with CO2 concentrations above 14.5 mol%. However, cost-effective RPB design becomes challenging at CO2 concentrations as low as 4 mol%. The analysis suggests that the optimal scale might increase with future advancements in RPB design technologies. Current design constraints necessitate a modular approach as the most economically viable strategy for scaling up RPB-based CO2 capture. This modularization strategy supports the wider adoption of CO2 capture technologies at small- to medium-scales, facilitating industry-wide implementation and sustainable progress by reducing initial investment and allowing for phased scaling.

PENGARUH PENGHINDARAN PAJAK DAN BIAYA AGENSI TERHADAP NILAI PERUSAHAAN DENGAN TRANSPARANSI SEBAGAI VARIABEL PEMODERASI

This research aims to analyze the effect of tax avoidance and agency costs on company value with transparency as a moderating variable. The type of research used in this research is quantitative. The data source used is secondary data, namely annual financial reports obtained from the Indonesia Stock Exchange (BEI). The population used in this research is non-cyclical industrial sector manufacturing companies listed on the Indonesia Stock Exchange (BEI) during the 2018-2022 period. The sample selection technique used purposive sampling technique and obtained 19 companies over 5 years with a total sample data obtained of 95 sample data. The results of this study indicate that tax avoidance and agency costs simultaneously have no effect on firm value, tax avoidance has no effect on firm value, agency costs have no effect on firm value, tax avoidance has no effect on firm value with transparency as a moderating variable, while agency costs influence on company value with transparency as a moderating variable.

Formation Control with Feedback Nash Strategy for Multiple Unmanned Aerial Vehicles in Unknown Environments

In the paper, the formation control problem in unknown environments for networked multi-unmanned aerial vehicle systems (UAVSs) is resolved under a nonlinear differential game (NL-DDG) framework. The main challenge of this framework is how to obtain feedback Nash strategies, which typically overly rely on global information and cannot ensure the existence of Nash strategies in unknown environments. Toward this goal, we initially design collision avoidance rules to ensure the safety of each UAV. Subsequently, we utilize an inverse optimal control method to construct the NL-DDG that incorporates both formation control and collision avoidance costs, enabling the derivation of analytical forms of Nash strategies relying solely on local information and minimizing performance metrics. In addition, the existence of feedback Nash strategy can be guaranteed with an undirected and connected information topology, which represents the optimality for the UAVSs. Moreover, we analyze the stability of the closed-loop system. Finally, the simulation results validate the effectiveness of the proposed scheme.

Early Opportunities for Onshore and Offshore CCUS Deployment in the Chinese Cement Industry

The promotion of deep decarbonization in the cement industry is crucial for mitigating global climate change, a key component of which is carbon capture, utilization, and storage (CCUS) technology. Despite its importance, there is a lack of empirical assessments of early opportunities for CCUS implementation in the cement sector. In this study, a comprehensive onshore and offshore source–sink matching optimization assessment framework for CCUS retrofitting in the cement industry, called the SSM-Cement framework, is proposed. The framework comprises four main modules: the cement plant suitability screening module, the storage site assessment module, the source–sink matching optimization model module, and the economic assessment module. By applying this framework to China, 919 candidates are initially screened from 1132 existing cement plants. Further, 603 CCUS-ready cement plants are identified, and are found to achieve a cumulative emission reduction of 18.5 Gt CO2 from 2030 to 2060 by meeting the CCUS feasibility conditions for constructing both onshore and offshore CO2 transportation routes. The levelized cost of cement (LCOC) is found to range from 30 to 96 (mean 73) USD·(t cement)−1, while the levelized carbon avoidance cost (LCAC) ranges from −5 to 140 (mean 88) USD·(t CO2)−1. The northeastern and northwestern regions of China are considered priority areas for CCUS implementation, with the LCAC concentrated in the range of 35 to 70 USD·(t CO2)−1. In addition to onshore storage of 15.8 Gt CO2 from 2030 to 2060, offshore storage would contribute 2.7 Gt of decarbonization for coastal cement plants, with comparable LCACs around 90 USD·(t CO2)−1.

Sexual conflict and sexual networks in bed bugs: the fitness cost of traumatic insemination, female avoidance and male mate choice.

Sexual conflict is prevalent among animals and is primarily caused by the fact that the optimal mating rates are often higher in males than in females. While there is a growing appreciation that females can also gain from multiple matings, we still know relatively little about which sex controls the observed mating rates and how close it is to the optimal female mating rates. To address this issue, we tracked female bed bugs (Cimex lectularius) inseminated daily versus weekly and found that weekly inseminated females lived longer and produced over 50% more offspring. In a follow-up experiment employing a social network framework, we placed 24 bed bugs into a semi-naturalistic arena and recorded all sexual interactions. While recently inseminated females did not avoid males more often, they were more frequently rejected by males. Finally, we tracked avoidance behaviour in a single cohort of female bed bugs as they received six successive daily inseminations. Avoidance rates increased and insemination durations decreased with increasing number of prior inseminations. Overall, our results indicate high costs of polyandry. Although females possess some plastic avoidance strategies, the observed rates of insemination fall closer to the male rather than female optimum.

A quantitative study on the impact of a community falls pharmacist role, on medicines optimisation in older people at risk of falls

BackgroundThe World Falls guidance includes medication review as part of its recommended multifactorial risk assessment for those at high risk of falling. Use of Falls Risk Increasing Drugs (FRIDs) along with polypharmacy and anticholinergic burden (ACB) are known to increase the risk of falls in older people.MethodThe impact of a community falls pharmacist within a hospital Trust, working as part of a multi-professional community falls prevention service, was evaluated in 92 people aged 65 years or older, by analysing data before and after pharmacist review, namely: number and type of FRIDs prescribed; anticholinergic burden score using ACBcalc®; appropriateness of medicines prescribed; bone health review using an approved too; significance of clinical intervention; cost avoidance, drug cost savings and environmental impact.ResultsFollowing pharmacist review, there was a reduction in polypharmacy (mean number of medicines prescribed per patient reduced by 8%; p < 0.05) and anticholinergic burden score (average score per patient reduced by 33%; p < 0.05). Medicines appropriateness improved (Medicines Appropriateness Index score decreased by 56%; p < 0.05). There were 317 clinically significant interventions by the community falls pharmacist. One hundred and one FRIDs were deprescribed. Annual cost avoidance and drug cost savings were £40,689-£82,642 and avoidable carbon dioxide (CO2) emissions from reducing inappropriate prescribing amounted to 941 kg CO2.ConclusionThe community falls pharmacist role increases prescribing appropriateness in the older population at risk of falls, and is an effective and cost-efficient means to optimise medicines in this population, as well as having a positive impact on the environment.

Techno-economic analysis of integrated MIDREX process with CO2 capture and storage: Evaluating sustainability and viability for iron production

This study offers a comprehensive evaluation of integrating carbon capture and storage (CCS) technology with the Midrex process for direct reduced iron (DRI) production. Employing rigorous simulation and validation against real plant data, we assess the impact of CCS integration on energy consumption, CO2 emissions, and economic feasibility. Our findings reveal a slight increase in energy consumption alongside a substantial reduction in CO2 emissions, with the cost of CO2 avoidance remaining competitive. Sensitivity analysis demonstrates the resilience of the proposed integration to market fluctuations. The findings of our study highlight the possibilities of integrating CCS with the Midrex process to address environmental issues and maintain economic sustainability in the iron manufacturing industry.

Seasonal thermal energy storage employing solar heat: A case study of Heilongjiang, China, exploring the transition to clean heating and renewable power integration

Seasonal thermal energy storage (STES) offers an attractive option for decarbonizing heating in the built environment to promote renewable energy and reduce CO2 emissions. A literature review revealed knowledge gaps in evaluating the technical feasibility of replacing district heating (DH) with STES in densely populated areas and its impact on costs, fossil fuel consumption, CO2 emission reduction, and renewable power integration. The effects of large-scale STES applications on the power and DH sectors in a regional energy system were quantified by applying the 2030 and 2050 power structure scenarios. The results indicated that STES reduces fossil fuel consumption and CO2 emissions at an affordable cost. It facilitates the integration of wind and solar power into power grids. With 100 % replacement of DH by STES, fossil fuel consumption and CO2 emissions can be reduced by approximately 40 % and 45 % in 2030 and 2050, respectively, with an annual cost increase of 20 %. The CO2 avoidance costs were predicted to be approximately 60 €/t in 2030 and well below 50 €/t in 2050. STES will reduce renewable power curtailment by 10 % in 2030 and 18 % in 2050. This study investigated STES from an energy-system perspective, supporting the formulation of clean heating transition policies.

Investigating tax risk’s influence on tax avoidance and debt costs: evidence from France

Purpose This paper aims to examine the impact of tax avoidance on the cost of debt. It also investigates the effect of tax risk on the relationship between tax avoidance and the cost of debt. Design/methodology/approach Two hypotheses are tested on a sample of nonfinancial French firms listed in the société des Bources Françaises 120 index from 2010 to 2022 using the feasible generalized least squares. To ensure the robustness of the findings, the authors changed the measures of tax avoidance and tax risk and used instrumental variable regression to effectively address concerns related to endogeneity. Additional analysis is conducted to examine if the relationship between tax avoidance and the cost of debt varies based on the magnitude of tax risk. Findings The authors found that tax avoidance negatively affects the cost of debt. However, when tax avoidance is associated with a high risk, it impacts positively the cost of debt. Practical implications This study’s findings are relevant to firms, creditors and French lawmakers. Creditors must make their decision to grant credit based simultaneously on proxies of tax avoidance and tax risk. Managers must effectively manage tax risks to protect their financial decisions, urging French policymakers to implement new regulations on corporate tax risk management. Originality/value To the best of the authors’ knowledge, this study is the first to have investigated the joint impact of tax avoidance and tax risk on the cost of debt in the French context.

Fixed and Variable Tax Expense and the Cost of Equity Capital

ABSTRACT Prior studies provide mixed evidence on the relation between tax avoidance and cost of equity capital. To understand how this relation varies across firms, we model income tax as containing both a fixed component (like a tax credit or deduction) and a variable component (a tax rate) and investigate how each type of tax expense affects the cost of equity capital. Unlike other fixed costs, the fixed tax component may be negative (a tax benefit). A lower fixed tax component always reduces cost of capital. The effect of a lower tax rate depends on the sign of the fixed tax component. With a negative fixed tax component, a lower tax rate increases cost of capital. Results of empirical tests are generally consistent with our predictions. Our results suggest the relation between cost of equity capital and tax avoidance is ambiguous when tax avoidance is accomplished through a lower tax rate. JEL Classifications: G12.

Systems design and techno-economic analysis of a novel cryogenic carbon capture process integrated with an air separation unit for autothermal reforming blue hydrogen production system

In the transition of the global energy paradigm toward decarbonization, hydrogen is expected to play a crucial role as an energy vector. To enhance the sustainability of hydrogen as an energy source, it is important to reduce costs and carbon emissions in the hydrogen production. Among various hydrogen production technologies, the autothermal reforming (ATR)-based blue hydrogen production method can stand out as a promising option in terms of both economic and environmental considerations. However, there are several bottlenecks: (i) ATR requires an air separation unit that increases the cost burden, and (ii) conventional amine-based carbon capture method consumes a significant amount of energy. To address these bottlenecks, this study proposes a novel cryogenic carbon capture process for ATR-based blue hydrogen production. In the proposed process, air separation unit are utilized not only for oxygen production but also for carbon capture. The compressed air from the air separation unit provides cooling energy to the mixture gas, leading to solidification and separation of carbon dioxide. Despite imposing an additional burden on the air separation unit, it significantly reduces the energy and cost associated with carbon capture. Consequently, there exists a trade-off relationship between the increased load on the air separation unit and the decreased load in carbon capture. This trade-off was evaluated by comparing it with the conventional absorption-based carbon capture process in terms of energy and economic aspects. The proposed process exhibits a 36.4% reduction in total energy consumption, with a particularly approximately 49.5% decrease in the energy consumed for carbon capture (0.278 kW h/kg-CO2). The economic performance indicates an 11% decrease in the levelized cost of hydrogen (1.62$/kg-H2), and a 45.3% decrease in CO2 avoidance cost (40.1$/kg-CO2). The captured solid CO2 can offer advantages during storage and transportation. Furthermore, the potential utilization of cooling energy of solid CO2 from an end-user perspective is expected to contribute to the establishment of a new industrial value chain.

Half the annoyance, same avoidance. The influence of a reduction in US intensity on categorical avoidance generalization

BackgroundAnxiety disorders are characterized by avoidance of aversive- and similar but innocuous stimuli. As avoidance hinders daily life, it is important to examine factors that influence avoidance behaviour. The aim of the present study was to examine the impact of a reduction in the intensity of an aversive stimulus (shock, US) on goal-directed avoidance- and avoidance generalization. MethodUsing a categorical fear learning task, students (n = 47) learned that one category of pictures (e.g., sunny, CS+) was followed by a shock whereas another category was not (e.g., rainy, CS-). Next, participants learned avoiding the shock by pressing the spacebar. Subsequently, for half of the participants shock levels were reduced (UShalf), for the other half the level remained the same (USsame). At test, original CS+ and CS- pictures were interspersed with novel category members (GCS+; GCS-) and stimuli that belonged to both categories (Amb). ResultsParticipants expected the US to occur on CS+ and GCS+ stimuli, but not on CS- and GCS- stimuli. Therefore, CS+ and GCS+ stimuli, but not CS- and GCS-, were avoided. For Amb the US expectancy and avoidance responses fell in between the CS+ and CS- categories. Reduction of the US had no effect on responding. Limitations and suggestionsAvoidance was relatively costless, and the reduced US was still experienced as aversive, probably therefore participants continued avoiding the US. For future studies, we suggest inclusion of avoidance costs and/or a more fine-grained avoidance measure to further explore the effects of US intensity reduction on avoidance behaviour.

The impact of family ownership on tax avoidance: International evidence

Motivated by the global interest on tax avoidance and the unique nature and contribution of family firms to the global economy, this study examines the impact of family ownership on the tax behaviour of firms listed in 38 capital markets from 2008 to 2019. The study is the first to investigate both conforming and nonconforming tax avoidance practices across family and non-family firms using an international setting. The empirical findings document that family ownership is associated with lower conforming and nonconforming tax avoidance. The result is attributed to the reputation cost of tax avoidance that is higher in family firms due to socioemotional wealth preservation considerations that discourage tax avoidance practices. In addition, eponymy serves as a disciplining mechanism that further reduces tax avoidance in family firms. Finally, the cultural dimension of power distance -the societal belief that the members of an organization are not equal- attenuates the restraining effect of family ownership on tax avoidance.

The value of admission avoidance: cost-consequence analysis of one-year activity in a consolidated service.

Many advantages of hospital at home (HaH), as a modality of acute care, have been highlighted, but controversies exist regarding the cost-benefit trade-offs. The objective is to assess health outcomes and analytical costs of hospital avoidance (HaH-HA) in a consolidated service with over ten years of delivery of HaH in Barcelona (Spain). A retrospective cost-consequence analysis of all first episodes of HaH-HA, directly admitted from the emergency room (ER) in 2017-2018, was carried out with a health system perspective. HaH-HA was compared with a propensity-score-matched group of contemporary patients admitted to conventional hospitalization (Controls). Mortality, re-admissions, ER visits, and direct healthcare costs were evaluated. HaH-HA and Controls (n = 441 each) were comparable in terms of age (73 [SD16] vs. 74 [SD16]), gender (male, 57% vs. 59%), multimorbidity, healthcare expenditure during the previous year, case mix index of the acute episode, and main diagnosis at discharge. HaH-HA presented lower mortality during the episode (0 vs. 19 (4.3%); p < 0.001). At 30 days post-discharge, HaH-HA and Controls showed similar re-admission rates; however, ER visits were lower in HaH-HA than in Controls (28 (6.3%) vs. 34 (8.1%); p = 0.044). Average costs per patient during the episode were lower in the HaH-HA group (€ 1,078) than in Controls (€ 2,171). Likewise, healthcare costs within the 30 days post-discharge were also lower in HaH-Ha than in Controls (p < 0.001). The study showed higher performance and cost reductions of HaH-HA in a real-world setting. The identification of sources of savings facilitates scaling of hospital avoidance. ClinicalTrials.gov (26/04/2017; NCT03130283).

The Indirect Costs of Avoidance in Food Allergy Management: A Scoping Review

Background: Food allergy management requires avoidance of allergenic food. While the direct costs of food allergy management have been described, avoidance may also contribute to time and opportunity costs. We aimed to conduct a scoping review of the peer-reviewed literature on the indirect costs of food allergy, and to characterise these costs through a series of fictitious case studies. Methods: We performed a scoping review, guided by Arskey and O’Malley’s methodological framework, and reported using the Preferred Reporting Items for Systematic Reviews and Meta-analyses extension for Scoping Reviews. Eligible studies included original, peer-reviewed, English language literature with no lower limits to publication dates, which addressed the indirect costs of food allergy, including time and opportunity costs. A search strategy was developed by content experts with experience performing multi-database scoping reviews. The search was performed on 10 July 2023, managed using Rayyan (Cambridge, USA), and screened for eligibility. Results: Searches yielded 104 articles. After deduplication, 96 articles were screened at the title and abstract level; 12 articles were included following full-text screening. Of these, three studies were performed on adults with food allergy, eight studies were based on data collected from caregivers of children with food allergy, and one study made use of data reflecting adults and caregivers of children with food allergy. Collectively, indirect costs were identified as higher amongst those with vs. without food allergy. The few studies on age and food allergy differences (e.g., type and number of food allergies, history of reaction) are equivocal. Conclusions: The limited body of peer-reviewed literature supports that food allergy commonly carries substantial indirect costs across diverse measurement tools, albeit with age-group differences.

PENGARUH TAX AVOIDANCE, KEBIJAKAN DEVIDEN, DAN AGENCY COST TERHADAP NILAI PERUSAHAAN SEKTOR MAKANAN DAN MINUMAN

The purpose of this study was to determine whether Tax avoidance, Dividend Policy, and Agency cost have a significant effect on firm value in manufacturing companies listed on the IDX 2020-2023. This study uses a descriptive quantitative approach which aims to explain the effect of the independent variables, namely Tax avoidance, Dividend Policy, and Agency cost on the dependent variable, namely firm value. The analysis method used in this study is multiple linear regression analysis, partial test (t test), coefficient of determination (R2 test) and simultaneous F test. The results of multiple linear regression analysis show that the three variables (X) show a positive effect on the variable (Y). The result of the partial test (t test) shows that all variables (X) have a significant effect on variable (Y). The result of R2 test shows that variable (Y) is influenced by variable (X) of 42.9% and the remaining 51.7% is influenced by other variables not examined in this study. And the simultaneous F test shows that variable (X) has a significant effect on variable (Y).