Roa Iktissadia Review مجلة رؤى اقتصادية

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Measuring The Characteristics Of Tax Evasion Behavior A Case Study: Coca-cola Company (1998-2018)
(جامعة الوادي - University of Eloued, 2021-12-31) Abbassi, Saber; Zanouda, Imane; Chaoubi, Mahmoud Faouzi
This study attempts to measure the tax evasion behavior in the economic institution, and finding out its most important characteristics, due to its negative impact on its financial strategy and reputation in the financial market. Therefore, COCA-COLA Company was selected as a case study during the period (1998-2018), especially after it was subjected to high tax fines during the year 2018 by the tax authorities in the United States due to tax responsibility weakness. The study relied on the cash tax rate (CETR) as a dependent variable to measure tax evasion, and nine independent variables to explain the company's financial behavior. Estimating the model using the ordinary least squares method did not show the significance of independent variables, then the principal component analysis was used, the variables were grouped into two factors, one of which has statistical significance in the interpretation of the behavior of the dependent variable. The second factor (return on assets, financial leverage, intangible assets, and size) showed that the company practices tax evasion in its investment operations. Likewise, the relationship between tax payments for the following years is reversed. JEL Classification: M40; M41