The Nexus Between Firm Characteristics and Tax Avoidance: Insights from Vietnam

This study investigated the nexus between firm characteristics and tax avoidance in Vietnam. The data for analysis were obtained from 307 ‎companies, encompassing 1,138 observations, listed on the Ho Chi Minh Stock Exchange (HOSE) from 2015 to 2020 through the Fiinpro ‎platform. The findings emphasized the favorable impact of firm size and return on assets (ROA) on tax avoidance and the adverse effect of ‎loss status and financial leverage, while refuting any significant influence of healthy age on tax avoidance strategies. These results offer valuable insights for tax administration in developing countries like Vietnam, highlighting the importance of monitoring larger firms' tax reporting practices, encouraging responsible tax strategies, and recognizing the need for a nuanced approach to address tax avoidance in highly ‎leveraged companies while understanding the distinctive tax behavior of firms based on their financial status and age‎.