Credit constraints and corporate tax payments: Evidence from Vietnamese firms

IF 3.3 2区经济学 Q1 ECONOMICS

Economic Systems Pub Date : 2025-03-03 DOI:10.1016/j.ecosys.2025.101305

Thang Ngoc Bach , Thanh Le , Bao Thai Luong , Huong Van Vu

{"title":"Credit constraints and corporate tax payments: Evidence from Vietnamese firms","authors":"Thang Ngoc Bach , Thanh Le , Bao Thai Luong , Huong Van Vu","doi":"10.1016/j.ecosys.2025.101305","DOIUrl":null,"url":null,"abstract":"<div><div>This paper examines the nexus between firms’ financial constraints and their tax payment. We conjecture that financial constraints are strongly associated with firms’ tax planning behaviour. In this process, firms strategically manage to reduce their tax payment in the face of financing constraints. Using a unique data set on Vietnamese private manufacturing small and medium enterprises spanning the 2009–2015 period, we find strong support for this hypothesis. In addition, we find discernible differences in forming strategic tax planning behaviour between two groups of constrained firms: those being discouraged by the financial market and those having loan applications declined by banks. Heterogeneity analysis further sheds light on the credit constraints-tax payment nexus since the negative relationship between credit constraints and corporate tax payments varies across different firms of different characteristics. Obtained findings convey important policy implications on tax administration and bank finance for economic development.</div></div>","PeriodicalId":51505,"journal":{"name":"Economic Systems","volume":"49 3","pages":"Article 101305"},"PeriodicalIF":3.3000,"publicationDate":"2025-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Systems","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0939362525000172","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

This paper examines the nexus between firms’ financial constraints and their tax payment. We conjecture that financial constraints are strongly associated with firms’ tax planning behaviour. In this process, firms strategically manage to reduce their tax payment in the face of financing constraints. Using a unique data set on Vietnamese private manufacturing small and medium enterprises spanning the 2009–2015 period, we find strong support for this hypothesis. In addition, we find discernible differences in forming strategic tax planning behaviour between two groups of constrained firms: those being discouraged by the financial market and those having loan applications declined by banks. Heterogeneity analysis further sheds light on the credit constraints-tax payment nexus since the negative relationship between credit constraints and corporate tax payments varies across different firms of different characteristics. Obtained findings convey important policy implications on tax administration and bank finance for economic development.

查看原文本刊更多论文

信贷约束与企业纳税：来自越南企业的证据

本文考察了企业财务约束与纳税之间的关系。我们推测，财务约束与企业的税务筹划行为密切相关。在这一过程中，企业在面临融资约束的情况下战略性地减少纳税。利用2009-2015年期间越南私营制造业中小企业的独特数据集，我们发现这一假设得到了强有力的支持。此外，我们发现在两组受约束的公司之间形成战略税收规划行为的明显差异：那些受到金融市场的劝阻和那些贷款申请被银行拒绝的公司。异质性分析进一步揭示了信用约束与纳税之间的关系，因为信用约束与企业纳税之间的负相关关系在不同特征的企业中有所不同。获得的研究结果对税收管理和经济发展的银行融资具有重要的政策意义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Economic Systems ECONOMICS-

CiteScore

4.90

自引率

0.00%

发文量

审稿时长

48 days

期刊介绍： Economic Systems is a refereed journal for the analysis of causes and consequences of the significant institutional variety prevailing among developed, developing, and emerging economies, as well as attempts at and proposals for their reform. The journal is open to micro and macro contributions, theoretical as well as empirical, the latter to analyze related topics against the background of country or region-specific experiences. In this respect, Economic Systems retains its long standing interest in the emerging economies of Central and Eastern Europe and other former transition economies, but also encourages contributions that cover any part of the world, including Asia, Latin America, the Middle East, or Africa.