Abstract
This study examines the association between related party transactions (RPTs) and corporate tax avoidance, and the potential moderating effect of state ownership on this association in Vietnam. Based on a hand-collected sample of 3,919 firm-year observations over the 2010–2016 period, we find a positive association between RPTs and corporate tax avoidance. We also observe that firms with higher amounts of related sales and net credit have even greater levels of tax avoidance. Finally, we find some evidence that state ownership moderates the positive association between RPTs and corporate tax avoidance. Overall, this study provides some novel evidence regarding RPTs, state ownership and corporate tax avoidance given that little is known about this association in developing countries such as Vietnam.
| Original language | English |
|---|---|
| Pages (from-to) | 327-356 |
| Number of pages | 30 |
| Journal | Australian Tax Forum |
| Volume | 37 |
| Issue number | 3 |
| Publication status | Published - 2022 |
Bibliographical note
© 2022 The Tax Institute. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.Keywords
- Related party transactions (RPTs)
- State ownership
- Corporate tax avoidance