Impact of Tax Planning on Cost of Debt of Listed Company in the Stock Exchange of Thailand
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Abstract
This study aims to investigate the impact of tax planning on the cost of debt of listed firms in the Stock Exchange of Thailand. The data was collected from the annual report during the year 2014 - 2016. The samples comprise of 813 samples. The tax planning was measured by effective tax rate, while the cost of debt was measured by the ratio of finance costs to total debt. Data analysis applied multiple regression analysis. Overall, this study found that the tax planning had insignificantly negative effects on the cost of debt, while that the tax planning of thin capital firms had significantly positive effects on the cost of debt. Regarding control variables, this study found that leverage and capital intensity had significantly positive effects on the cost of debt. However, the profitability of non-thin capital firm had significantly positive effects on the cost of debt. The results could be used as a guideline for regulators to implement taxation in various measures and corporate governance measures for listed firms in the Stock Exchange of Thailand.
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