Le Quy Duong
A icle
Co po a e ax agg essi eness and ma ke alue o
Vie namese lis ed i ms
Con empo a y Economics
P o ided in Coope a ion wi h:
VIZJA Uni e si y, Wa saw
Sugges ed Ci a ion: Le Quy Duong (2025) : Co po a e ax agg essi eness and ma ke alue o
Vie namese lis ed i ms, Con empo a y Economics, ISSN 2300-8814, VIZJA Uni e si y, Wa saw, Vol.
19, Iss. 3, pp. 329-338,
h ps://doi.o g/10.5709/ce.1897-9254.569
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Despi e ex ensi e academic esea ch on he ma ke capi aliza ion implica ion o co po a e ax agg essi eness
in de eloped ma ke s, pape s examining his causal ela ionship in eme ging ma ke s a e ew and a be-
ween. The p esen a icle aims o con ibu e o he ex an li e a u e by in es iga ing he impac o co po a e
ax a oidance on ma ke alue in Vie nam. The da a sample includes nea ly 7,400 i m-yea obse a ions om
2009 o 2023. Reg ession analysis wi h panel da a is employed o assess he in luence o co po a e ax agg es-
si eness on i m alue o Vie namese lis ed i m. Empi ical esul s show ha co po a e ax a oidance inhibi s
ma ke alue o lis ed i ms. On a e age, he ma ke capi aliza ion would dec ease by a ound 0.13% i he
e ec i e ax a e inc eases by 1%. Fu he mo e, inancial le e age, i m size, and p o i abili y ha e signi ican
impac s on i m alue. As a esul , we p opose se e al ecommenda ions o he Vie namese go e nmen o
con ol ax-agg essi e ac i i ies and build e ec i e ax adminis a ion in he u u e.
1. In oduc ion1. In oduc ion
Al hough ax agg essi eness has been comp e-
hensi ely in es iga ed in nume ous pape s, i s
de ini ion is no uni e sally accep ed. Acco ding
o Bimo e al. (2019), co po a e ax agg essi eness
o a oidance en ails a angemen s and ansac-
ions ha dec ease explici axes. Following Huang
e al. (2018), co po a e ax agg essi eness includes
a ious legal ac i i ies o educe a i m's ax liabil-
i y. Co po a e ax is he c i ical ac o ha a ec s a
company's managemen choices, such as di idend
policy, inancial le e age, and e ained ea nings. As
a esul , co po a e ax agg essi eness undoub edly
in luences a i m's alue. Howe e , he e a e s ill
unanswe ed conce ns abou his p oposi ion. No-
ably, i is cu en ly ques ionable whe he co po a e
ax agg essi eness p omo es o inhibi s he ma ke
alue o a lis ed company.
On he one hand, co po a e ax agg essi eness
imp o es u u e cash low and educes ax bu den,
enhancing i m alue (Hasan e al., 2021; Mess-
aoude & Ming-Chang, 2023; Gued ib & Ma ouani,
2023). On he o he hand, ax agg essi eness migh
nega i ely a ec he i m alue due o epu a ion-
al cos s, agency cos s, highe cos s o capi al, and
sanc ions imposed by he go e nmen (Chen e
al., 2014; Campbell e al., 2020; A o a & Gill, 2022;
McClu e, 2023). In a di e en con ex , he ex an
li e a u e does no indica e whe he he p omo ing
(o inhibi ing) e ec obse ed in de eloped ma -
ke s could be ex ended o Vie nam, an in an and
ine icien capi al ma ke .
Mo i a ed by his esea ch gap, we aim o analyze
Co po a e Tax Agg essi eness and Ma ke Value o
Vie namese Lis ed Fi ms
ABSTRACT
H26, G32, G10.
KEY WORDS:
JEL Classi ica ion:
ax agg essi eness, i m alue, eme ging s ock ma ke s.
School o Banking and Finance, Na ional Economics Uni e si y
Co espondence conce ning his a icle should be add essed o:
Quy Duong Le, School o Banking and Finance, Na ional Econom-
ics Uni e si y,
Room 909, A1 Building, 207 Giai Phong s ee , Hai Ba
T ung dis ic , Hanoi.
E-mail: [email p o ec ed]
Quy Duong Le
P ima y submission: 13.07.2024 | Final accep ance: 27.05.2025
330
Quy Duong Le
10.5709/ce.1897-9254.569DOI: CONTEMPORARY ECONOMICS
Vol. 19 Issue 3 329-3382025
he impac o co po a e ax agg essi eness on i m
alue in Vie nam, an impo an eme ging ma ke
in Sou heas Asia wi h unique cha ac e is ics com-
pa ed o de eloped ma ke s. Fi s ly, due o nume -
ous compliances and documen s equi ed by he ax
egula ion, Vie nam has a no o iously complica ed
ax sys em. Se e al p o isions ela ed o co po a e
ax a e e en con adic o y. The Ease o Doing Busi-
ness epo s a ax paymen index in which Vie -
nam sco es 109 ou o 190 na ions (Wo ld Bank,
2020). Fu he mo e, he elec onic ax se ice has
no been widely applied due o limi ed equipmen ,
acili ies, and in e ne in as uc u e. The complex
legal sys em, as well as incomple e elec onic ax
se ices, c ea e a ou able condi ions o ax ag-
g essi eness. Secondly, in Vie nam, he loss o he
s a e budge h ough ax a oidance is much mo e
se e e compa ed o de eloped ma ke s. In 2022,
Vie nam's ax e enue accoun s o abou 15.36%
o GDP, while he ax e enue o OECD coun ies
is abou 34% (OECD, 2023). Consequen ly, he
amoun o na ional ou pu collec ed by he go e n-
men h ough axes is low, which has nega i e social
implica ions. As a esul , he epu a ional expenses
connec ed wi h ax agg essi eness a e likely o ha e
a mo e no iceable nega i e in luence on i m alue
in Vie nam. Finally, while he In e na ional Finan-
cial Repo ing S anda d (IFRS) is widely applied
in neighbou ing coun ies, Vie nam's inancial
epo ing is no based on IFRS p inciples, leading
o manipula ion. Hence, his pape is essen ial o
o eign in es o s who a e paying a en ion o Vie -
nam, an eme ging s ock ma ke wi h unique cha -
ac e is ics. Fu he mo e, we also p opose se e al
i al ecommenda ions o policymake s o make
he ax sys em mo e e icien .
Based on he popula ion o mo e han 580 Vie -
namese lis ed i ms om 2009 o 2023, we pe o m
eg ession analysis o explo e he ela ionship be-
ween co po a e ax agg essi eness and i m alue.
Diagnos ic es s show ha he ixed-e ec s model
is signi ican and sui able o he da a sample. Ac-
co ding o eg ession esul s, ax agg essi eness in-
hibi s i m alue, i espec i e o which a io is used
o measu e ax agg essi eness. Fo ins ance, i he
o al o cu en ax a e inc eases by 1%, i m alue
would educe by app oxima ely 0.13% on a e age.
I aligns wi h he esul s epo ed in se e al eme g-
ing Asian ma ke s, such as China (Chen e al.,
2014) and India (A o a & Gill, 2022). Howe e , his
esul con adic s pa e ns documen ed in Wes e n
de eloped ma ke s like he US, F ance o Japan
(Tang e al., 2019; Hasan e al., 2021). While i m
size, inancial le e age, and p o i abili y a e signi i-
can ly explana o y a iables, ixed asse s a io and
sales g ow h play no ole in explaining i m alue.
This pape includes i e sec ions. The li e a u e
e iew and hypo hesis de elopmen a e p esen ed
in he nex sec ion. The me hodology is in oduced
in Sec ion 3, whe eas he empi ical esul s a e ana-
lyzed in Sec ion 4. Conclusion and ecommenda-
ions a e d awn in he inal sec ion.
2. Li e a u e Re iew and 2. Li e a u e Re iew and
Hypo hesis De elopmen Hypo hesis De elopmen
Since co po a e ax migh educe i ms’ p e- ax
p o i s by a signi ican amoun , i a ec s i m alue.
Se e al academic esea che s ocus on he ela ion-
ship be ween co po a e ax agg essi eness and i m
alue, leading o wo opposing iewpoin s. On he
one hand, i is e iden ha co po a e ax agg es-
si eness posi i ely a ec s i m alue. Thanks o
co po a e ax agg essi eness, he ax bu den would
be educed, minimizing he ans e o weal h om
he co po a ion o he go e nmen . F om an in e -
na ional pe spec i e, Tang e al. (2019) ind ha
lis ed companies wi h highe ax agg essi eness ex-
hibi highe ma ke capi aliza ion, especially in he
US, F ance, Japan, and Canada. By a oiding co po-
a e ax, hese i ms could maximize hei ne p o -
i s, which a e used o ein es and pay di idends
o sha eholde s. Hasan e al. (2021) a gue ha
co po a e ax agg essi eness inc eases u u e cash
low, enhancing i m alue in he US om 1986 o
2016. Addi ionally, companies engaging in ax ag-
g essi eness end o in es mo e, inc easing hei
u u e pe o mance (Hossain e al., 2022). Based on
a da a se o 375 Taiwanese lis ed i ms om 2009-
2019, Messaoude and Ming-Chang (2023) epo a
signi ican ly posi i e e ec o ax a oidance on i m
alue. Acco ding o Gued ib and Ma ouani (2023),
co po a e ax agg essi eness could be conside ed as
an in es men p o iding ax sa ings, leading o an
inc ease in i m alue in Tunisian.
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Co po a e Tax Agg essi eness and Ma ke Value o Vie namese Lis ed Fi ms
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On he o he hand, se e al s udies documen a
i m alue educ ion associa ed wi h co po a e ax
a oidance. Acco ding o he agency cos s heo y,
in es o s migh be conce ned ha ax agg essi e-
ness is combined wi h pe o mance manipula ion,
lowe ing i m anspa ency (Desai & Dha mapala,
2009). Then, he agency cos s would a ise due o
wo se con lic s be ween he boa d o di ec o s and
s ockholde s. Ob usca o y ax-agg essi e ac i i ies
migh lead o a shield o manage ial oppo unism
and he di e sion o en s. Implemen ing ax plan-
ning ac i i ies also incu s labou , ime, and o he
esou ces. Fu he mo e, i ms wi h p ominen
b ands bea signi ican expenses due o he epu-
a ional damage o consume s and supplie s. Using
a s uc u al model, McClu e (2023) es ima es ha
he non- ax cos s o ax agg essi eness, including
agency cos s and ax audi isk, educe p e- ax in-
come by a ound 6.5%. F om inancial ma ke s,
Chen e al. (2014) disco e he nega i e eac ion o
in es o s o he disclosu e o ax a oidance, which
ad e sely a ec s i m alue. All lis ed companies
mus ul il hei ax obliga ions. Hence, i a i m
canno conceal i s ax-agg essi e a angemen s
and ansac ions, i migh ace po en ial penal ies
imposed by he axa ion depa men (Campell e
al., 2020). Tax-agg essi e ansac ions impai co -
po a e epu a ion, leading o unwan ed sc u iny
om ax au ho i ies (Aus in & Wilson, 2017). F om
he cos o capi al heo y, Cook e al. (2017) s a e
ha he cos o equi y ises wi h co po a e ax ag-
g essi eness. Simila ly, bond yields and bank loan
sp eads inc ease i i ms engage in ax a oidance
(She lin e al., 2020). Subsequen ly, he highe cos
o equi y and cos o deb makes he cos o capi al
highe , leading o a i m alue discoun . Examining
a uni e se o app oxima ely 550 lis ed i ms in In-
dia be ween 2009 and 2019, A o a and Gill (2022)
documen a signi ican ly nega i e co ela ion be-
ween ax a oidance and i m alue.
In summa y, he exis ing pape s in es iga ing
co po a e ax agg essi eness's e ec s on i m alue
ha e p o ided inconsis en indings since hey ha e
been ca ied ou in di e en con ex s. Building on
he e iewed li e a u e, we p edic ha he cos s o
ax-agg essi e ac i i ies would exceed hei ben-
e i s. Theo e ically, ax agg essi eness could cause
agency cos s, po en ial penal ies om au ho i ies,
ad e se eac ions om in es o s, and highe cos s
o capi al. The e o e, he expec ed hypo hesis is:
H1: The ax agg essi eness would nega i ely a -
ec i m alue in Vie nam.
3. Me hodology3. Me hodology
3.1. Da a Sample
The da a sample includes Vie namese lis ed compa-
nies be ween 2009 and 2023. Ou da a sample does no
include inancial ins i u ions such as comme cial banks,
insu e s, o secu i ies companies since hei epo ing
s anda ds di e om hose o non- inancial i ms. Ob-
se a ions wi h missing da a o nega i e p e- ax income
a e also emo ed. Owing o hese il e s, an unbal-
anced panel o 7,338 i m-yea obse a ions wi h 583
published companies is ob ained. Accoun ing da a is
ga he ed om FiinG oup, a p ominen se ice supplie
Table 1
Sample Dis ibu ion Ac oss Yea s
Yea Numbe o i ms Yea Numbe o i ms
2009 384 2017 522
2010 399 2018 529
2011 407 2019 552
j2012j 409 2020 550
2013 433 j2021j 558
j2014j 458 j2022j 571
j2015j 469 j2023j 583
j2016j 514
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10.5709/ce.1897-9254.569DOI: CONTEMPORARY ECONOMICS
Vol. 19 Issue 3 329-3382025
o inancial da a in Vie nam (h ps:// iinx. n). Table 1
displays he da a samples so ed by yea .
3.2. Va iable Cons uc ion
Fi s ly, ma ke capi aliza ion di ided by he book al-
ue o common equi y is used as a p oxy o i m alue, as
Tang (2019) and Hasan e al. (2021) sugges ed. Ma ke
capi aliza ion equals he numbe o ou s anding sha es
mul iplied by he closing s ock p ice a he end o he
iscal yea .
Secondly, he ollowing a ios a e used as he su -
oga e o co po a e ax agg essi eness (A o a & Gill,
2022; Messaoude & Ming-Chang, 2023). The o al ax
a e equals he o al ax expense scaled by he p e- ax
income. The cu en ax a e is he a io be ween he cu -
en ax expense and he p e- ax income. The ax paid
a e is es ima ed as he ax paid in cash di ided by he
p e- ax income. The book- ax di e ence is equal o he
p e- ax income minus he axable income. Since i is un-
able o collec he ac ual axable income o a lis ed i m,
i is calcula ed as he cu en ax expense di ided by he
highes co po a e income ax a e. Then, he book- ax
di e ence a e is aken as he a io o he book- ax di e -
ence and o al asse s.
Finally, we added se e al con ol a iables based on
ex an li e a u e on ax agg essi eness and i m alue
(Chen e al., 2014; Tang, 2019; Gued ib & Ma ouani,
2023). These a e he loga i hm o o al asse s (Size), o al
deb di ided by o al esou ces (Le ), he a io o ixed
asse s o o al asse s (Fix), e u n on o al asse s (ROA)
and inc ease in ne e enue (G Sale). All he a iables
a e de ined in Table 2.
3.3. Model Speci ica ion
To examine he impac o ax agg essi eness on
i m alue, we un eg essions using a panel da a
me hodology. Fi m alue is he dependen a i-
able, and ax-agg essi e a ios a e he key explana-
o y a iables:
(1)
Whe e: TA ( ax agg essi eness) is one o he ollow-
ing a iables: TTR, CTR, TPR, o BTR. Con ol a i-
ables include Size, Le , Fixed, ROA, and G Sale. β0 is
he eg ession cons an . β1 e lec s he e ec o ax ag-
g essi eness, whe eas βm e lec s he e ec o con ol
a iables. ε is a s ochas ic e o e m.
4. Resul s and Discussions4. Resul s and Discussions
4.1. Desc ip i e S a is ics
Table 3 p o ides a de ailed summa y o he de-
sc ip i e s a is ics o all a iables. Focusing on i m
alue as a dependen a iable, i s mean is 1.473,
wi h a s anda d de ia ion o 1.387. On a e age, he
ma ke capi aliza ion o Vie namese lis ed i ms is
app oxima ely 1.5 imes hei book alue o com-
mon equi y. The means o o al and cu en ax a-
ios a e 0.198, sligh ly lowe han he s a u o y ax
a e o 20%. In con as , he a e age ax paid a io
is app oxima ely 18%, indica ing ha he ac ual ax
paid in cash is less han he accoun ing ax expens-
es. No ably, he a e age book- ax di e ence a e is
0.012, sugges ing ha he axable income is lowe
han he accoun ing p e- ax income. This da a leads
o he conclusion ha co po a e ax agg essi eness
is p e alen in Vie nam. Mo ing on o he con ol
a iables, he mean inancial le e age is app oxi-
ma ely 0.2, indica ing ha abou 20% o i ms’ o al
asse s a e inanced by deb . The a e age ixed asse s
a io is oughly 23%. Sample Vie namese compa-
nies ha e an a e age ROA o nea ly 8% and an a e -
age sales g ow h a e o 42.7%. As shown in Table 4,
he highes co ela ion coe icien be ween he wo
explana o y a iables is only 0.352, and impo an -
ly, mul icollinea i y is no p esen , ensu ing he eli-
abili y o ou esea ch indings. Al hough he co e-
la ion coe icien be ween he o al ax a io and he
cu en ax a io is 0.8, hey a e no simul aneously
explana o y a iables.
4.2. Diagnos ic Tes s
Fi s ly, he Augmen ed Dickey-Fulle es is em-
ployed o check he s a iona i y o he a iables. As
displayed in Table 5, all DF s a is ics a e lowe han
he c i ical alue o -1.403. The e o e, all he a iables
a e cons an .
Secondly, he Hausman es is pe o med o se-
lec he mos sui able model om he ixed-e ec s
and andom-e ec s models. The chi-squa ed s a-
is ics, which a e ema kably high a mo e han 70,
wi h a p- alue o 0.000, p o ide a clea indica ion
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Co po a e Tax Agg essi eness and Ma ke Value o Vie namese Lis ed Fi ms
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Table 2
Va iable de ini ion
Va iables De ini ion Calcula ion
FV Fi m alue Ma ke capi aliza ion / Book alue o common equi y
TTR To al ax a io To al ax expense / P e- ax income
CTR Cu en ax a io Cu en ax expense / P e- ax income
TPR Tax paid a io Tax paid in cash / P e- ax income
BTR Book- ax di e ence a io (P e ax income-Taxable income)/(To al asse s)
Size To al asse s The loga i hm o o al asse s
Le Financial le e age To al liabili y / To al esou ces
Fixed Fixed asse s a io Fixed asse s / To al asse s
ROA Re u n on o al asse s Ne income / To al asse s
GRSale Sale G ow h (Sale_ -Sale_( -1))/Sale_( -1)
Table 3
Desc ip i e S a is ics
Va iable Mean Max Min S d. De . Obse a ions
FV 1.473 25.010 0.050 1.387 7,338
TTR 0.198 0.570 0.000 0.094 7,338
CTR 0.198 0.484 0.000 0.103 7,338
TPR 0.179 0.496 0.000 0.100 7,338
BTR 0.012 0.595 -0.227 0.041 7,338
Size 27.439 33.990 23.381 1.630 7,338
Le 0.206 0.860 0.000 0.183 7,338
Fixed 0.237 0.978 0.000 0.212 7,338
ROA 0.079 0.812 -0.012 0.075 7,338
GRSale 0.427 46.120 -1.049 6.419 7,338
Table 4
Co ela ion Ma ix
FV TTR CTR TPR BTR Size Le Fixed ROA GR-
Sale
FV 1.000 - - - - - - - - -
TTR 0.398*** 1.000 - - - - - - - -
CTR 0.453*** 0.841*** 1.000 - - - - - - -
TPR 0.216** 0.428*** 0.407*** 1.000 - - - - - -
BTR 0.585*** 0.544** 0.553*** 0.416*** 1.000 - - - - -
Size 0.139*** -0.001 0.009 -0.02* 0.011 1.000 - - - -
Le -0.095** 0.012 0.024** -0.041*** -0.034*** 0.341*** 1.000 - - -
Fixed 0.048*** -0.178*** -0.157*** -0.095*** 0.142*** -0.001 0.264*** 1.000 - -
ROA 0.347*** -0.219*** -0.203*** -0.166*** 0.364*** -0.16*** -0.352*** 0.039** 1.000 -
GR-
Sale
-0.021* -0.011 -0.009 -0.034*** 0.004 0.007 -0.021* -0.025* -0.001 1.000
334
Quy Duong Le
10.5709/ce.1897-9254.569DOI: CONTEMPORARY ECONOMICS
Vol. 19 Issue 3 329-3382025
ha he ixed-e ec s model is he bes i o he
da a sample.
Finally, we check he assump ions o he panel e-
g essions. The Du bin-Wa son and B eusch-Pagan
es s a e used o check he p esence o se ial co e-
la ion and he e oskedas ici y. As epo ed in Table
6, au o-co ela ion is absen since he DW s a is ics
a e always close o 2. The p- alue o he B eusch-
Pagan es s is always highe han 0.05, implying he -
e oskedas ici y is no a se ious p oblem.
4.3. The E ec o Tax Agg essi eness on Fi m Value
Table 6 shows he eg ession analysis esul s us-
ing he ixed-e ec s model. F om a s a is ical pe -
spec i e, co po a e ax agg essi eness and con ol
a iables explain app oxima ely 60% o he a ia-
ion in Vie namese i m alue du ing 2009-2023.
Since he F-s a is ics a e inc edibly high, a mo e
han 80, he model is signi ican and p o ides eli-
able eg ession esul s.
Table 6 p esen s he eg ession esul s o he e -
ec o ax a oidance on Vie namese i m alue.
I 's c ucial o no e ha ax agg essi eness has a
signi ican nega i e impac on i m alue, ega d-
less o he ax-agg essi e a ios. The book- ax di -
e ence a io, in pa icula , has he highes impac ,
wi h a 1% inc ease esul ing in a 0.141% dec ease
in i m alue. Simila ly, a 1% ise in he o al ax
a e o cu en ax a e leads o an a e age educ ion
o oughly 0.13% in lis ed i m alue. The e ec o
he ax-paid a io on i m alue is he lowes , wi h
a signi ican es ima ed coe icien o -0.093. The e-
o e, hypo hesis H1 is con i med, implying ha
co po a e ax agg essi eness nega i ely a ec s he
Vie namese i m alue. These indings co obo a e
he hypo hesis sugges ed by Chen e al. (2014) and
A o a and Gill (2022). F om he heo y o agency
cos s, obscu e ax-agg essi e ac i i ies such as in-
come con e sion, p ice ans e , and capi al hin-
ning a e conside ed inancial s a emen manipula-
ion, lowe ing i m anspa ency. Then, manage s
a e likely o pa icipa e in weal h exp op ia ion,
o se ing ax a oidance bene i s. Fu he mo e, due
o he ding beha iou (Nguyen & Vo, 2024), nume -
ous Vie namese in es o s nega i ely o e eac o
disclosing ax-agg essi e ac i i ies. Consequen ly,
sha es o lis ed i ms engaging in ax a oidance a e
o e sold, leading o a subs an ial dec ease in ma -
ke alue. Mo e impo an ly, because Vie nam is an
in an and ine icien capi al ma ke , s ock p ices
migh be pushed below hei in insic alues o e
a pe iod o ime. The e o e, co po a e ax agg es-
si eness has a signi ican ly nega i e impac on i m
alue in Vie nam, consis en wi h esul s epo ed
in o he Asian eme ging ma ke s. In China, Chen
e al. (2014) epo ha a dec ease o 0.25% in he
ma ke capi aliza ion is associa ed wi h an inc ease
o 1% in he book- ax di e ence. In India, i he
book- ax di e ence a io ises by 1%, he ma ke
alue o equi y dec eases by oughly 0.156% (A o a
& Gill, 2022).
Fu he mo e, se e al con ol a iables signi i-
can ly a ec i m alue, as shown in Table 6. Fi m
size posi i ely a ec s i m alue, wi h signi ican es-
ima ed coe icien s o app oxima ely 0.2. Thanks o
p ecious asse s, la ge companies could mo e easily
aise loans om he capi al ma ke , educing hei
cos o deb . Big i ms could achie e op imal capi al
s uc u es, ake ad an age o ax shields, and hen
maximize hei ma ke alue. In an eme ging ma -
ke like Vie nam, indi idual in es o s conside a
as lis ed i m a isible and a ac i e in es men ,
leading o a high demand o pu chase i s sha es.
Hence, i m size p omo es i m alue, as documen -
ed by T ipa hi e al. (2024).
Financial le e age and p o i abili y also ha e
posi i e e ec s on i m alue. These con ol a i-
ables' es ima ed coe icien s a e conside ably high,
a a ound 0.13 and 0.23, espec i ely. The e a e bo h
ad an ages and disad an ages o using inancial le-
e age. On one side o he coin, in e es expenses
a e ax deduc ible, inc easing ax sa ings and i m
alue. On he o he side, an excessi e deb a io
migh imply de aul isk i he i m canno mee
p incipal and in e es paymen s. As shown in Table
3, he a e age inancial le e age o Vie namese lis -
ed i ms is only abou 20.6%. Vie namese i ms a e
likely o main ain inancial le e age a a balanced
le el, which posi i ely a ec s hei ma ke alue. I
is consis en wi h he esul s o Nguyen e al. (2020).
Acco ding o Nguyen e al. (2023), p o i abili y is
an essen ial index ha Vie namese in es o s use
o make hei in es men decisions. The highe
he p o i abili y, he mo e a ac i e he lis ed i m.
www.ce. izja.pl
335
Co po a e Tax Agg essi eness and Ma ke Value o Vie namese Lis ed Fi ms
This wo k is licensed unde a C ea i e Commons A ibu ion 4.0 In e na ional License.
Table 5
The Augmen ed Dickey–Fulle Tes Resul s
FV TTR CTR TPR BTR Size Le Fixed ROA GRSale
DF es
s a is ic
-2.814 -1.934 -1.828 -2.155 -2.082 -1.577 -1.691 -1.519 -1.608 -1.752
Table 6
The E ec o Tax Agg essi eness on Fi m Value
Models (1) (2) (3) (4)
Cons an 0.574*** 0.576*** 0.485** 0.583***
TTR -0.128***
CTR -0.136***
TPR -0.093***
BTR -0.141***
Size 0.205*** 0.207*** 0.204*** 0.205***
Le 0.137*** 0.141*** 0.134*** 0.127**
Fixed 0.083 0.098 0.088 0.098
ROA 0.231** 0.241*** 0.239** 0.244**
GRSale -0.001 -0.006 -0.008 -0.007
Adjus ed R2 0.598 0.598 0.583 0.584
F-s a is ic 86.179 86.847 87.169 81.866
DW s a is ics 1.842 1.875 1.892 1.909
B eusch-Pagan P ob. 0.214 0.204 0.179 0.188
No e: *,**, and *** indica e signi icance a he 10%, 5%, and 1% le els, espec i ely.
Table 7
C oss-coun ies Compa a i e Analysis o Tax Sys ems Among Eigh De eloping Coun ies in ASEAN
Co po a e
ax a e Tax calcula ion Tax se ice
Regula o y
quali y
T anspa en
ax egula ion
IFRS accoun ing
s anda ds
Book- ax
di e ence
a io
Indonesia 25% Sel assessmen Elec onic -0.28 -0.6 Yes 0.0082
Malaysia 25% Sel assessmen Elec onic 0.55 0.51 Yes 0.0068
Singapo e 17% O icial assessmen Elec onic 1.96 1.77 Yes 0.0046
Thailand 30% Sel assessmen Elec onic 0.23 -0.17 Yes NA
Philippines 30% Sel assessmen Elec onic -0.06 -0.55 Yes 0.0086
Cambodia 20% Sel assessmen Manual -0.35 -0.97 No NA
Laos 35% Sel assessmen Manual -0.84 -0.83 No NA
Vie nam 20% Sel assessmen Manual -0.61 -0.74 No 0.012
No e. This able p esen s a compa a i e analysis o se e al de eloping ma ke s in ASEAN. The co po a e ax a e is
collec ed om Syadullah (2015). The Regula o y Quali y and T anspa en ax egula ion a e ob ained om Ta midi e
al. (2019). While he book- ax di e ence a ios o Indonesia, Malaysia, Singapo e, and he Philippines a e collec ed om
Feb iana and Rachmawa i (2023), he igu e o Vie nam is calcula ed by he au ho . NA s ands o No A ailable, and
IFRS s ands o In e na ional Financial Repo ing S anda d.
336
Quy Duong Le
10.5709/ce.1897-9254.569DOI: CONTEMPORARY ECONOMICS
Vol. 19 Issue 3 329-3382025
Consequen ly, p o i abili y measu ed by e u n o
asse s has a signi ican ly posi i e impac on i m
alue.
By con as , he e is insu icien da a o conclude
he e ec s o ixed asse s a io and sales g ow h on
i m alue in Vie nam. Bo h a iables a e insigni i-
can a he 5% le el. I co obo a es he esul s o
A o a and Gill (2022). The Indian i m alue is i -
ele an o ixed asse s and changes in sales. Simi-
la ly, in Vie nam, he co ela ion coe icien s be-
ween FV and GRSale is close o ze o, a only -0.021
(see Table 4).
4.4. C oss-coun ies Compa a i e Analysis
To iden i y he unique cha ac e is ics o he Vie -
namese axa ion sys em, we unde ake a compa a-
i e analysis among se e al de eloping ma ke s in
he Associa ion o Sou heas Asian Na ions (ASE-
AN), including Indonesia, Malaysia, Singapo e,
Thailand, Philippines, Cambodia, Laos, and Vie -
nam. As shown in Table 7, he book- ax di e ence
a io o Vie nam is signi ican ly highe han o he
ASEAN coun ies, sugges ing he p e alence o
ax agg essi eness in Vie nam. Since he co po a e
ax a e in Vie nam is conside ably lowe han in
6 ou o 7 o he coun ies, i is no he key eason
o ax a oidance. In con as , h ee dis inc i e ea-
u es migh cause ax-agg essi e ac i i ies. Fi s ly,
he Vie namese ax se ice is a manual sys em o
epo ing axable income wi hou elec onic ax in-
oices. Fu he mo e, wi h he sel -assessmen sys-
em, axpaye s a e esponsible o es ima ing hei
axable sales and expenses. Due o his manual sel -
assessmen sys em, i is di icul o ax au ho i ies
o de e mine a co po a ion's income accu a ely.
Secondly, he quali y o Vie nam's ax policy o mu-
la ion and implemen a ion is inadequa e. Ta midi
e al. (2019) s a e ha Vie nam anks he second
lowes in e ms o egula o y quali y and anspa -
en ax egula ion. The concep s o e enue and
expense ecogni ion, in en o y alua ion me hods,
and dep ecia ion a e complica ed and inconsis en
among legal documen s. Las bu no leas , he i-
nancial s a emen s o Vie namese i ms a e no
based on he In e na ional Financial Repo ing
S anda d (IFRS). I acili a es he manipula ion o
inancial s a emen s o he ax-agg essi e pu pose.
5. Conclusions and Recommenda ions5. Conclusions and Recommenda ions
Gi en he con lic ing empi ical e idence ega d-
ing he alue-enhancing ole o ax agg essi eness
in de eloped ma ke s, he main aim o his s udy
is o examine he ela ionship be ween ax agg es-
si eness and ma ke alue in Vie nam, an impo an
eme ging ma ke wi h unique cha ac e is ics. The
da a sample includes nea ly 600 non- inancial lis ed
i ms be ween 2009 and 2023, esul ing in abou
7,500 i m-yea obse a ions. The a e age ax paid
a io is only 17.9%, while he s anda d s a u o y ax
a e is mo e han 20%. Fu he mo e, he a e age
book- ax di e ence a e is posi i e, highligh ing he
p e alence o ax-agg essi e ac i i ies in Vie nam.
As p e iously discussed, he dis inc cha ac e is ics
o Vie nam's ax sys em a e complex egula ions and
manual sel -assessmen ax se ices. I is di icul o
ax au ho i ies o accu a ely de e mine a co po a-
ion's income and hen es ima e i s axable income
o cu b co po a e ax agg essi eness in Vie nam.
Simila esul s a e documen ed in China (Xu, 2024)
and India (A o a & Gill, 2022). Bo h economies a e
in a ansi ion pe iod wi h impe ec ax collec ion
and adminis a ion sys ems, c ea ing condi ions o
ax agg essi eness. Recen ly, hey ha e enhanced ax
supe ision by imposing accoun ing and audi ing
policies as well as building online ax in as uc u e.
Reg ession analysis documen s ha ax agg es-
si eness nega i ely a ec s i m alue a he 1% le el.
This esul holds i espec i e o which a io we use
o measu e ax agg essi eness. On a e age, he ma -
ke capi aliza ion would decline by app oxima ely
0.13% when he e ec i e ax a e inc eases by 1%.
The ad e se e ec o co po a e ax agg essi eness
on Vie namese i m alues can be explained as
ollows: Fi s ly, inancial s a emen manipula ion
and p ice ixing a e ela i ely common in he Vie -
namese s ock ma ke . Due o he opaque na u e o
ax-agg essi e ac i i ies, manage s ha e a chance
o ex ac cash lows om he i m, educing i s
ma ke alue. Secondly, he a e age ax e enue o
eme ging economies is abou 17% o hei GDP,
compa ed o app oxima ely 35% in OECD coun-
ies (Panday e al., 2023). As an eme ging coun-
y, Vie nam ob ains low ax e enue, a only 15%
o GDP. The e o e, he epu a ional expenses con-
nec ed wi h ax-agg essi e ac i i ies ha e a mo e
