The Effect of Financial Constraints on The Tax Planning Tendencies of Companies Finansal Kısıtların Firmaların Vergi Planlama Eğilimleri Üzerindeki Etkisi

Yuvali Ö., AY H.

Sosyoekonomi, vol.32, no.62, pp.393-411, 2024 (ESCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 32 Issue: 62
  • Publication Date: 2024
  • Doi Number: 10.17233/sosyoekonomi.2024.04.19
  • Journal Name: Sosyoekonomi
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.393-411
  • Keywords: Tax Planning, Financial Constraint, Tax Planning Tendency, Tax Avoidance
  • Dokuz Eylül University Affiliated: Yes

Abstract

In the face of financial constraints, companies often turn to tax planning to raise funds without an increase in their debt or equity capital. This study aims to analyse the impact of financial constraints on the tax planning tendencies of firms in Türkiye. For that purpose, regression analysis has been performed on data collected from semi-structured interviews with 35 companies operating in Türkiye. Based on the results of the regression analysis, it was found that there is a positive and statistically significant relationship between the two variables. The regression analysis was repeated by including dummy variables such as number of employees, type of company, annual turnover and period of operation. It was concluded that each variable has a positive and significant effect on the tax planning tendency of the companies.