Management Structure and Profitability Affect Tax Planning of Companies Listed in The Stock Exchange of Thailand: Resource Industry Group

Abstract

This study aimed to (1) examine the influence of management structure on tax planning of listed companies in the resource industry group on the Stock Exchange of Thailand, and (2) examine the influence of profitability on tax planning of listed companies in the resource industry group on the Stock Exchange of Thailand. The research was quantitative, using secondary data from the annual financial statements of 61 listed companies in the resource industry group from 2020–2024 with complete and continuous data. Tax planning variables were measured by the tax rate to operating cash flow, the effective corporate income tax rate, the tax rate to total assets, and the tax rate to net profit. Independent variables included profitability, namely return on assets, return on equity, and net profit margin, as well as management structure, namely the proportion of independent directors, female directors, and foreign directors. Data were analyzed using descriptive statistics and multiple regression analysis.

The results of the study on objective (1) showed that management structure did not significantly affect the tax planning of listed companies in the resource industry group, with no correlation found between the proportion of independent directors, female directors, and foreign directors with tax planning indicators. The results of the study on objective (2) showed that profitability significantly affected the tax planning of listed companies in the resource industry group. In particular, return on assets and return on equity showed a statistically significant positive correlation at the 0.01 level with the tax rate on operating cash flow and the tax rate on total assets. The study results reflect that companies with high profitability tend to recognize higher tax liabilities.