Firm size as a moderator in the relationship between tax compliance and business performance: a study of Vietnamese enterprises

This study aims to assess the impact of tax compliance on firm performance and examine the moderating role of firm size in this relationship. Data were collected from 322 non-financial companies listed on the HOSE during the period 2016-2023. The feasible generalised least squares (FGLS) regression method with interaction variables was used to test the model. The results show that tax compliance positively impacts financial performance, especially in small-sized enterprises. In addition, firm size is moderating, as the positive impact of tax compliance decreases in large enterprises. The study contributes to institutional theory and stakeholder theory and provides empirical evidence to help formulate appropriate tax policies according to firm size in the context of an emerging market like Vietnam.