The Relationship between Firm Performance and Corporate Tax Avoidance of Listed Companies in The Stock Exchange of Thailand in SET 100 Index

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บดินทร์ มหาวงศ์ ไพบูลย์ ผจงวงศ์


This study had objectives to examine the relationship between firm performance and corporate tax avoidance by collecting data from listed companies in The Stock Exchange of Thailand in SET 100 Index. There were 50 qualified companies as sampling. This is a documentary research using secondary data of financial statements of companies from SETSMART form 56-1 and annual report data from year 2011 to 2015. The data were analyzed by narrative statistic in population characteristic such as maximum, minimum, mean and standard deviation and the hypothesis were tested by multiple regression analysis. The findings were Effective tax rate had lower mean comparing to the correct tax rate paying to the Revenue Department, indicating that companies had Corporate Tax avoidance to pay least possible tax. Moreover, there was a negative correlation between Return on Assets and Corporate Tax avoidance, Return on Sales as well as Return of Equity with statistical significance. However, there was no correlation in Economic value added, Market value added and Tobin’s Q

Recommendation from the study were Listed companies should pay attention to tax payment to comply with Revenue Code for the benefits in stable economic system development. Furthermore, Tax collecting organization should pay attention and realize the concept of tax collection to yield equality to all and conform to regulation in tax effectiveness.

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