Evaluating the impact of tax shield on firm value: Experimental study of import-export enterprises

Abstract

In terms of globalization and worldwide economic trade, import-export enterprises play an extremely important role in a country's economy. Along with great benefits and opportunities, import-export enterprises also face many challenges, including tax issues. And tax shields - an effective tool to optimize profits and reduce tax burdens, are prioritized by businesses. This study will be development-oriented, focusing on the assessment of the impact of tax shields on enterprise value in import-export industry by evaluating data on firms quoted in the market. This will provide an opportunity to discover ways to optimize tax shields, while making the enterprise more efficient and increasing its value. Financial statements will be used as a source of research data for 20 listed import-export companies during the period from 2009 to 2023. StataMP 17 software will be used for processing and analysis. Key factors such as debt and non-debt tax shields considered the focus in assessing the impact on enterprise value. It was found that debt tax shields affect enterprise value inversely, whereas non-debt tax shields have a favorable impact. The study introduces moderating variables like enterprise size, revenue growth rate, financial leverage, ROA, ROE, and asset structure to make the analysis model even more accurate.