Does tax planning create value-adding for Vietnamese listed firms?

Abstract

This paper examines the effect of tax planning on the company value of listed companies in Vietnam, especially we investigate the difference in research results on this relationship between state-owned companies and non-state-owned companies. We used the purposive sampling method with a total sample of 513 non-financial companies between 2015 and 2019. We used secondary data from audited financial statements and other statistical documents of these companies. According to GLS estimation, the research result shows that tax planning positively affects company value, and state-controlled enterprises create more value-adding than non-state-controlled ones. In addition, state ownership, capital intensive, and company size are control variables that positively impact firm value, but financial leverage is not. The findings suggest that financial managers should apply the SAVANT framework, which focuses on considering financial decisions in the tax environment in order to seek opportunities to increase tax benefits and increase company value.