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2020 | OriginalPaper | Chapter

The Impact of Sustainable Development Report Disclosure on Tax Planning in Thailand

Authors : Sathaya Thanjunpong, Thatphong Awirothananon

Published in: Data Management, Analytics and Innovation

Publisher: Springer Singapore

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Abstract

This paper aims to examine the impact of sustainable development report disclosure (hereafter called SDRD) on the tax planning (hereafter called TP) of listed companies, which exclude the financial sector, in the Stock Exchange of Thailand. The data of this paper is based only on the year 2016 and the sample size consists of 337 companies from seven industries. The questionnaires from Global Report Initiative are used for evaluation of SDRD. The TP is also measured by the ratio of total tax expenses to total assets. Overall, this paper finds that the SDRD had a statistically negative effect on the TP. This indicates that companies with good SDRD practices could have a higher level of TP. Regarding control variables, financial leverage and capital intensity had a statistically positive effect on the TP, while profitability and family control had a statistically negative effect on the TP. This paper further divides the sample into family and non-family companies to examine whether there is any different effect of SDRD on the TP. The results further indicated that the relationship between SDRD and TP was significantly negative for the family companies. The relationship was, thus, weak and insignificant for the non-family companies. The results are useful to market regulators since they could make some decisions about adjusting some rules and regulations or give some incentives to encourage the Thai listed companies to perform better sustainable development practices.

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Metadata
Title
The Impact of Sustainable Development Report Disclosure on Tax Planning in Thailand
Authors
Sathaya Thanjunpong
Thatphong Awirothananon
Copyright Year
2020
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-32-9949-8_19