The Tax Planning of Financial Policies and Executive Compensation that Affect the Operating Results of Companies Listed on the Market for Alternative Investment (MAI)
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Abstract
This objective of this research was to: study the tax planning, financial policies and executive compensation
that affect the performance of companies listed on the Market for Alternative Investment (MAI). The sample consisted of 60 MAI-listed companies, excluding those in the financial sector. Data were collected from annual financial reports during 2020-2022, resulting in 180 firm-year observations. The study employed descriptive statistics, frequency, percentage, mean, median, standard deviation, maximum, minimum, skewness, kurtosis and test the hypothesis using multiple regression analysis with stepwise selection method.
The results revealed that: 1) company's growth had a positive effect on security returns (p < 0.01), while company size had a negative effect (p < 0.05), with an explanatory power of 23.80% (R2 = 0.238); 2) tax-to-total-assets ratio, firm size, firm size, and firm growth positively affected return on assets (p < 0.01, p < 0.05), while effective income tax rate and interest coverage ratio showed negative effects (p < 0.01, p < 0.05), explaining 92.70% of variance (R2 = 0.927); 3) tax-to- total-assets ratio and firm size positively influenced return on equity (p < 0.01), while effective income tax rate, dividend payout ratio, and investment in tangible assets showed negative effect (p < 0.01, p < 0.05), with an explanatory power of 66.30% (R2 = 0.663); and 4) tax-to-total-assets ratio and firm size positively affected earnings per share, while effective income tax rate showed a negative effect (p < 0.01), explaining 65.10% of the variance (R2 = 0.651).
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References
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