Tax Behavior and Investment Behavior of Corporate Managers: Case of Banks and Decentralized Financial Systems (DFS) in Benin

Authors

  • Stanislas Théodule Médard Dèwanou Comlan AGOSSADOU Laboratory for Research on Performance and Development of Organizations (LARPEDO) Faculty of Economics and Management (FASEG) University of Abomey-Calavi (UAC) - Benin,

DOI:

https://doi.org/10.5281/zenodo.11103625

Keywords:

Corporate income tax savings; corporate income tax behavior; investment behavior; financial objectives, tax objectives.

Abstract

This paper analyses the influence of tax behavior on investment behavior of corporate managers in Benin. The paper applies the generalized method of moments (GMM) to dynamic panel data. The sample used covers 21 firms, i.e. 11 banks for the period from 2011 to 2020 and 10 DFSs for the period from 2016 to 2021. It is found that investment behavior is most positively affected by the tax saving due to the deduction of depreciation allowances on economic assets (EIDDAAE), then by corporate income tax (CIT) and finally by debt (DEBT); and negatively by equity (EQUITY) and past investment (INVESTMENT(‑1)). This paper is one of the first to extend the literature by determining the influence of tax behavior on the investment behavior of corporate managers in Benin.

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Published

2024-05-02

How to Cite

AGOSSADOU, S. T. M. D. C. . (2024). Tax Behavior and Investment Behavior of Corporate Managers: Case of Banks and Decentralized Financial Systems (DFS) in Benin. International Journal of Financial Accountability, Economics, Management, and Auditing (IJFAEMA), 6(2), 377–404. https://doi.org/10.5281/zenodo.11103625

Issue

Vol. 6 No. 2 (2024): Issue 02 (2024)

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.