Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 10, 2023 erstellt
Description:
This study examined the moderating effect of tax incentives on the relationship between effective tax rates and cash holdings of Brazilian non-financial institutions listed on the B3 stock exchange from 2017 to 2021. Using a panel linear regression model with a fixed effect and a statistical moderation model, the findings reveal that a lower total tax burden on value added (TTVA), as a proxy for the effective tax rate for all taxes, is associated with higher cash accumulation. However, when tax incentives are introduced as the moderator, the correlation between TTVA and cash holdings becomes positive. This supports the notion that a moderator variable can influence the direction and strength of the relationship between independent and dependent variables. The groundbreaking nature of this research in the accounting field makes it a valuable contribution to the literature, benefiting various users of accounting information, such as the government, researchers, and investors. Overall, this study sheds light on the impact of tax incentives on the cash holdings of Brazilian non-financial institutions listed on the B3 stock exchange, providing insights that have implications for tax planning, tax incentives, and the cash levels of firms