Tax Planning and Corporate Growth: Evidence from Companies Listed in the SET100 Index of the Stock Exchange of Thailand
DOI:
https://doi.org/10.33152/jmphss-10.5.11Keywords:
Tax planning, Sustainable growth, Effective tax rate, Return on assets, Stock Exchange of Thailand (SET100)Abstract
Sustainable business development is currently an important matter for companies that want to survive and thrive in a very competitive and unstable world. Yet, the impact of tax planning on the company’s growth and profit, including sales growth, returns on assets, and the sustainable growth rate, is disputable. This study aims to determine the connection between tax planning and sales growth, return on assets, and the sustainable growth rate of the firms listed in the Stock Exchange of Thailand 100 Index. Tax planning will be measured by the effective tax rate, the income tax-to-net operating cash flow ratio, and income tax-to-total assets ratio. The research design used is quantitative. The data were gathered from firms’ financial reports, notes to financial statements, and annual registration statements (Form 56-1 and Form 56-1 One Report) for 2018-2022. Using data of 220 firms for the five years mentioned above, the statistical analysis was done with descriptive statistics, Pearson correlation, and multiple regression analysis. The results of the study revealed that tax planning has a significant impact on firms’ return on assets and sustainable growth rate but not on sales growth. Indeed, the effective tax rate has a significant negative relationship with the firms’ return on assets, while the income tax-to-total assets ratio has a significant positive one and the income tax-to-net operating cash flow ratio has no relationship. Moreover, tax planning has a significant effect on firms’ sustainable growth rate: The effective tax rate has a significant negative relationship with it, the income tax-to-net operating cash flow ratio has a significant positive relationship, and the income tax-to-total assets ratio has the strongest relationship with it. Thus, the study concluded that tax planning is associated with several financial indicators of firms listed in the Stock Exchange of Thailand 100 Index.
References
Amouzesh, N., Moeinfar, Z., & Mousavi, Z. (2011). Sustainable growth rate and firm performance: Evidence from iran stock exchange. International Journal of Business and Social Science, 2(23), 249–255.
Behera, B., & Rahul, N. (2025). The role of knowledge management in driving environmental sustainability: A mediating perspective of aware-ness and innovation. Journal of Administrative and Business Studies, 11(1), 14–26.
Bhagiawan, G., & Mukhlasin, M. (2020). Effect of corporate governance on tax planning and firm value. International Journal of Commerce and Finance, 6(2), 72–80.
Bunaca, R. A., & Nurdayadi. (2019). The impact of deferred tax expense and tax planning toward earnings management and profitability. Jurnal Bisnis dan Akuntansi, 21(2), 215–236. https://doi.org/10.34208/jba.v21i2.625
Bwala, I. F., Ibrahim, M., & Gurama, Z. (2024). Tax planning and the value of listed commercial banks in nigeria. International Journal of Intellectual Discourse, 7(1), 167–180.
Dewanthi, B. Y., & Purwatiningsih, P. (2024). The influence of sales growth, capital structure and tax planning on company value (empirical study of property and real estate companies listed on the indonesian stock exchange 2018–2022). Jurnal Penelitian Ekonomi dan Akuntansi, 9(1), 270–281.
Fadhillah, R. A., & Suryadi, E. (2024). The influence of tax planning, tax avoidance, and deferred tax assets on the value of financial sector companies. International Journal Papier Public Review, 5(1), 30–38. https://doi.org/10.47667/ijppr.v5i1.295
Ftouhi, K., Ayed, A., & Zemzem, A. (2015). Tax planning and firm value: Evidence from european companies. International Journal Economics & Strategic Management of Business Process, 4(1), 73–78.
Gao, X., Aziz, M. A., & Yacoub, O. M. (2026). Gender differences in work-family conflict, work engagement, and parental involvement among urban Chinese parents: A structural equation modeling with multi-group analysis. Journal of Advances in Health and Medical Sciences, 12(1), 60–72.
Hidayat, A., & Yuliah, N. (2018). The effect of good corporate governance and tax planning on company value. EAJ (Economic and Accounting Journal), 1(3), 234–241. https://doi.org/10.32493/eaj.v1i3.y2018.p234-241
Hidayat, I., & Sutria, P. O. (2023). The influence of deferred tax expense, tax planning, and profitability on earnings management in manufacturing companies in the coal mining subsector listed on the Indonesia Stock Exchange. APTISI Transactions on Management (ATM), 7(1), 79–85. https://doi.org/10.33050/atm.v7i1.1833
Higgins, R. C. (1977). How much growth can a firm afford? Financial Management, 6(3), 7–16. https://doi.org/10.2307/3665251
Hoffman, W. H. (1961). The theory of tax planning. The Accounting Review, 36(2), 274–281. https://doi.org/10.2308/tar-7095930
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kasim, R. S. R. (2026). Fintech as a catalyst for financial inclusion and socio-economic empowerment: Evidence from emerging economies. The Global Conference on Entrepreneurship and the Economy in an Era of Uncertainty.
Khémiri, W., Chafai, A., Eldeen, H. H. E., Attia, E. F., & Elamer, A. A. (2026). Financial inclusion and the corruption-sustainable corporate growth nexus in MENA: Evidence from a threshold panel model. Corporate Social Responsibility and Environmental Management, 33(2), 2384–2412.
Kijewska, A. (2016). Conditions for sustainable growth (SGR) for companies from the metallurgy and mining sector in Poland. Metalurgija, 55(1), 139–142.
Le, V. H., Vu, T. A. T., & Nguyen, M. H. (2022). Tax planning and firm value: The case of companies with different state ownership in vietnam. Journal of Eastern European and Central Asian Research, 9(2), 333–343. https://doi.org/10.15549/jeecar.v9i2.700
Manaf, N. A., Saad, N. M., Mohamad, N. E. A., Mohd, I., & Rahim, N. (2018). Determinants of sustainable growth rate (SGR) by using Zakon’s model to encounter with Shariah compliance requirements for Shariah securities compliance firms in Malaysia.
International Journal of Industrial Management, 4(1), 16–20. https://doi.org/10.15282/ijim.4.1.2018.10662
Saila, N., & Agustina, H. (2023). The impact of tax planning, profitability, liquidity and sales growth on firm value in the company infrastructure sector 2018–2022. Enrichment: Journal of Management, 13(3), 1993–2001. https://doi.org/10.35335/ enrichment.v13i3.1565
Stock Exchange of Thailand. (2023). Trading statistics.
Utami, S. R. (2016). The comparison of sustainable growth rate, firm’s performance and value among firms in the SRI KEHATI Index and IDX30 Index on the Indonesia Stock Exchange. International Journal of Advanced Research in Management and Social Sciences, 5(5), 68–81.
Verawati, Y., & Rustiarini, N. W. (2025). Unraveling the determinants of budgetary slack: A study of participation, information asymmetry, and organizational factors. Journal of Advanced Research in Social Sciences and Humanities, 10(2), 1–9.
Wedha, M. A. S., & Sastri, I. D. A. M. M. (2017). The effect of tax planning on return on equity (ROE) in food and beverage sector companies listed on the Indonesia Stock Exchange during 2013–2015. KRISNA: Kumpulan Riset Akuntansi, 9(1), 30–35. https://doi.org/10.22225/KR.9.1.326.30-35
Published
Issue
Section
License
Copyright (c) 2026 Sirirat Poungsangsuk, Napaphat Sukanantasak
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
