Relationship between investment opportunities and tax avoidance: econometric analysis in publicly traded companies
Abstract
Objective: This empirical article aims to verify whether companies that have a greater set of investments are more aggressive in their tax planning, in addition to measuring this effect.
Method: this is a descriptive study that used secondary data extracted from the financial statements of companies listed on the São Paulo Stock Exchange (B3) in the Economática® database for the period between 2012 and 2020, with a total of 1,998 company year observations in an unbalanced panel. Statistical analysis for estimating the coefficients was performed using the Generalized Method of Moments with collapsed instruments for dynamic panel.
Originality/Relevance: the work presents evidence about the relationship between the set of investment opportunities and tax aggressiveness in Brazilian companies, considering the existence of a gap on this topic, mainly in national studies, where no studies involving the relationship were identified. between these variables.
Results: the investment opportunity set does not influence tax aggressiveness, regardless of the proxy used, in addition, there was a negative and significant relationship between company size and the effective tax rate, demonstrating that larger companies are more aggressive in planning tax.
Theoretical/methodological/practical contributions: the work contributes to the national literature by bringing evidence of the need to better understand the proxies that form the set of investment opportunities, presenting suggestions for changes for future works, considering the peculiarities of the available data on companies national.
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References
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