The relationship between sales growth, profitability, and tax avoidance
The study aims to examine the intricate interplay between sales growth, profitability, and tax avoidance strategies adopted by firms. Through an analysis of a diverse dataset spanning multiple industries and regions, this study investigates how sales growth influences a firm’s marketing approach to...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2024-02-01
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| Series: | Innovative Marketing |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19606/IM_2024_01_Shubita.pdf |
| _version_ | 1827274647017619456 |
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| author | Mohammad Fawzi Shubita |
| author_facet | Mohammad Fawzi Shubita |
| author_sort | Mohammad Fawzi Shubita |
| collection | DOAJ |
| description | The study aims to examine the intricate interplay between sales growth, profitability, and tax avoidance strategies adopted by firms. Through an analysis of a diverse dataset spanning multiple industries and regions, this study investigates how sales growth influences a firm’s marketing approach to tax avoidance and its subsequent impact on profitability. The sample is Jordanian industrial firms listed on the Amman Stock Exchange for the study period between 2010 and 2020. Four critical variables used in the dataset are tax avoidance, return on assets, sales, and size. It employs a mixed-methods approach, including quantitative regression analysis and qualitative assessments of corporate tax strategies. The study results reveal a strong negative relationship between ROA and tax avoidance; for every unit increase in ROA, tax avoidance decreases by 0.198 units. Sales, however, do not exhibit a statistically significant association with tax avoidance. Firm size is an additional predictor with a marginally significant direct link with tax avoidance (β = 0.042, p = 0.049). This study highlights the central role of profitability in shaping tax avoidance strategies, with larger firms marginally more inclined toward tax planning. |
| first_indexed | 2024-03-08T05:45:14Z |
| format | Article |
| id | doaj.art-ead774b0ccba4dc4b646d33f18648fe0 |
| institution | Directory Open Access Journal |
| issn | 1814-2427 1816-6326 |
| language | English |
| last_indexed | 2025-03-22T06:28:19Z |
| publishDate | 2024-02-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Innovative Marketing |
| spelling | doaj.art-ead774b0ccba4dc4b646d33f18648fe02024-04-25T13:03:08ZengLLC "CPC "Business Perspectives"Innovative Marketing1814-24271816-63262024-02-0120111312110.21511/im.20(1).2024.1019606The relationship between sales growth, profitability, and tax avoidanceMohammad Fawzi Shubita0https://orcid.org/0000-0001-7389-2108Ph.D., Professor, Accounting Department, Amman Arab UniversityThe study aims to examine the intricate interplay between sales growth, profitability, and tax avoidance strategies adopted by firms. Through an analysis of a diverse dataset spanning multiple industries and regions, this study investigates how sales growth influences a firm’s marketing approach to tax avoidance and its subsequent impact on profitability. The sample is Jordanian industrial firms listed on the Amman Stock Exchange for the study period between 2010 and 2020. Four critical variables used in the dataset are tax avoidance, return on assets, sales, and size. It employs a mixed-methods approach, including quantitative regression analysis and qualitative assessments of corporate tax strategies. The study results reveal a strong negative relationship between ROA and tax avoidance; for every unit increase in ROA, tax avoidance decreases by 0.198 units. Sales, however, do not exhibit a statistically significant association with tax avoidance. Firm size is an additional predictor with a marginally significant direct link with tax avoidance (β = 0.042, p = 0.049). This study highlights the central role of profitability in shaping tax avoidance strategies, with larger firms marginally more inclined toward tax planning.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19606/IM_2024_01_Shubita.pdfcompany sizeindustrial sectorJordanmarketing strategyprofitabilitysales expense |
| spellingShingle | Mohammad Fawzi Shubita The relationship between sales growth, profitability, and tax avoidance Innovative Marketing company size industrial sector Jordan marketing strategy profitability sales expense |
| title | The relationship between sales growth, profitability, and tax avoidance |
| title_full | The relationship between sales growth, profitability, and tax avoidance |
| title_fullStr | The relationship between sales growth, profitability, and tax avoidance |
| title_full_unstemmed | The relationship between sales growth, profitability, and tax avoidance |
| title_short | The relationship between sales growth, profitability, and tax avoidance |
| title_sort | relationship between sales growth profitability and tax avoidance |
| topic | company size industrial sector Jordan marketing strategy profitability sales expense |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19606/IM_2024_01_Shubita.pdf |
| work_keys_str_mv | AT mohammadfawzishubita therelationshipbetweensalesgrowthprofitabilityandtaxavoidance AT mohammadfawzishubita relationshipbetweensalesgrowthprofitabilityandtaxavoidance |