The impact of tax avoidance on the value of listed firms in Vietnam

Abstract

The study aims to examine the impact of tax avoidance on the value of listed firms in Vietnam. Using a sample of 209 non-financial businesses listed on the Ho Chi Minh Stock Exchange (HOSE) in Vietnam for the period 2010–2018 and the Panel-Corrected Standard Errors (PCSE) to overcome the model’s errors, we show that tax avoidance has a negative impact on the value of businesses at a 10% significance level. In addition, other variables, such as foreign ownership, investment, return on assets, leverage, the growth rate, firm size, sales index, and age of the firm, have a positive impact on firm value. In addition, variables such as state ownership and total accruals have a negative impact on firm value, and most of them are highly robust. However, firm size and the firm growth rate are not statistically significant in the study.