Does tax avoidance affect productivity in SMEs?

© 2024, Emerald Publishing Limited. This document is available under the CC-BY-NC 4.0 license http://creativecommons.org/licenses/by-nc-4.0/ This document is the Accepted version of a Published Work that appeared in final form in Management Decision. To access the final edited and published work see https://doi.org/10.1108/MD-07-2023-1159Purpose The present paper examines whether tax avoidance practices affect productivity in small and medium-sized enterprises (SMEs). This study also analyses whether this association is moderated by firm size, firm financial constraints, management control of cash flows, or information risk. Design/methodology/approach This study used a sample of Spanish SMEs for the period 2006-2020. Tax avoidance was measured as the difference between the statutory tax rate and the effective tax rate, and three proxies for productivity were used: overall productivity, capital productivity and labour productivity. Firm fixed effects regressions, propensity score matching and change regressions were used to address the potential sample selection bias and endogeneity between tax avoidance and productivity. Findings The results of the empirical analysis suggest that tax avoidance increases productivity in SMEs. This beneficial effect of tax avoidance was found to be higher in small firms than in medium-sized firms, but smaller in firms that faced financial constraints. Furthermore, the findings showed that the tax avoidance effect on productivity was stronger in firms where managers had less control over the cash flow –i.e. dividend-paying firms–, and weaker in firms with lower quality of financial information – i.e. firms with qualified audit reports. Research implications This study contributes to the research on the economic consequences of tax avoidance by examining its impact on firm-level productivity in SMEs. From additional analyses, the findings of the study suggest that the positive effect of tax avoidance on firm productivity depends on firm size, the financial slack of the firm, and the costs of agency conflicts and information problems associated with tax avoidance. Practical implications The results of this study have implications for SMEs, suggesting that cash flows obtained through tax avoidance, if properly used, may increase firm productivity. In planning their tax avoidance practices, SME managers could take advantage of specific tax incentives designed for SMEs, which is particularly relevant given the low productivity levels of these firms. The findings also highlight the importance of maintaining high-quality information and implementing mechanisms to mitigate the agency risks associated with tax avoidance to enhance the productivity of SMEs. Social implications This study provides important insights to policymakers on SME tax policy, supporting the special tax rules for SMEs − in force in many OECD and EU countries− which aim to create an environment conducive to SME growth. The findings of the study also have macroeconomic implications, given the importance of firm productivity as a determinant of economic growth and the relevance of SMEs in most national economies. Originality/value This study provides novel empirical evidence on the effects of tax avoidance on firm-level productivity in SMEs. Despite the prevalence of SMEs as the predominant type of organization in most countries, no prior research has comprehensively examined this issue for this type of firm. This research question was addressed by considering proxies for overall, capital, and labour productivity and by examining how SME characteristics affect this relationship

Camposancos: Una ‘imprenta’ de los presos del franquismo

Camposancos fue uno de los campos de concentración más importantes de Galicia (1937-1939). En este artículo estudiamos los graffitis dejados por los prisioneros en las paredes de los edificios ocupados por el campo. Abordamos los graffitis como un valioso testimonio para reconstruir la historia de los desposeídos bajo un régimen dictatorial.Camposancos was one of the most important concentration camps in Galicia (1937-1939). In this article, we study the graffiti left by the prisoners on the walls of the buildings occupied by the camp. We treat the graffiti as valuable evidence to reconstruct the history of the disempowered under a repressive regime

Tax avoidance and debt maturity in SMEs

© 2024 The Authors. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ This document is the Published version of a Published Work that appeared in final form in Journal of International Financial Management and Accounting. To access the final edited and published work see https://doi.org/10.1111/jifm.12201We investigate how tax avoidance affects the maturity structure of debt in firms where tax avoidance costs are presumably low, namely SMEs. Previous research has shown that creditors of listed tax‐avoiding companies impose shorter maturities to more frequently reassess the tax avoidance risks in debt contracts. Using a sample of 110,690 firm‐year observations of Spanish SMEs over the period 2007–2020, we examine the relationship between tax avoidance and debt maturity and the channels driving this relationship. We find that tax‐avoiding SMEs show a longer debt maturity. This effect is stronger for SMEs with higher profitability, lower earnings management incentives, and higher reliability of financial reporting. We also find that tax avoidance reduces leverage and short‐term debt, increases future cash flows, and decreases future cash flow volatility. Overall, these findings suggest that, unlike large firms, SMEs use cash tax savings to reduce leverage and short‐term debt in their financial struc ture and that tax avoidance is positively valued by their lenders

Rural–urban differences in the perceived impact of COVID‑19 on mental health by European women

Purpose Many studies have documented an adverse impact of the pandemic on women´s mental health. This cross-sectional study aims to explore associations between women's perceived impact of lockdowns and curfews on their mental health and their residential location, along with other contextual and individual factors. Methods Using data from the Flash Eurobarometer 2712 “Women in times of COVID-19”, conducted between January 25 and February 3, 2022, across the 27 Member States of the European Union (n = 23,671), this study applied bivariate tests and stratified models based on respondent location (rural areas, small or medium-sized towns and urban areas). The exploration sought predictors influencing the perceived mental health impact, encompassing five individual characteristics (age, disability, employment status, educational attainment, and household type), perceptions of violence against women, and country of residence. The dependent variable was assessed subjectively, measured on a scale from 1 (minor negative impact) to 5 (major negative impact). Results Women living in urban areas generally reported a higher perceived negative impact on mental health compared to women in rural areas or in small/medium-sized towns. Age and disability were significantly linked to perceiving a negative impact on mental health. Similar adjusted odds ratios for age were observed across rural areas (aOR 0.97, 95% CI = 0.97–0.98), small or medium-sized towns (aOR 0.98, 95% CI = 0.97–0.98), and urban areas (aOR 0.97, 95% CI = 0.97–0.98). In terms of disability, the odds were higher in rural areas (aOR 1.44, 95% CI = 1.20–1.73) than in urban ones (aOR 1.36, 95% CI = 1.15–1.62). Among women residing in urban areas, those in childless couples were less likely to perceive a negative impact on mental health (aOR 0.89, 95% CI = 0.80–0.99) compared to women in couples with children. Respondents perceiving increased violence against women due to COVID-19 were more likely to perceive a negative impact on mental health, with higher odds ratios in rural areas (aOR 1.56, 95% CI = 1.40–1.74) compared to urban areas (aOR 1.29, 95% CI = 1.17–1.41). Differences across countries were also found. Conclusion The perceived impact of lockdowns and curfews on mental health exhibited variance between urban and rural areas. These disparities were influenced by individual characteristics such as age, disability, or household type, as well as the effects of COVID-19 on violence against women and contextual variables like country of residence.Project “Andalusian rural territories facing depopulation and aging: challenges and opportunities” (B-HUM-460-UGR20) funded by the Operative Program of the European Regional Development Fund (ERDF) 2020Funding for open access publishing: Universidad de Granada/CBUA

La consigna del cuidado, medicina y filosofía

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Tertiarisation and globalisation of productive systems: comparative analysis

It is commonly known that the provision of services is currently carried out at a global level. Tertiary activities not only continuously increase their share in total employment and value added, but also in international trade and, as a consequence, in the processes of externationalisation and offshoring, characteristic of contemporary globalisation. These processes help enterprises, especially SMEs, get access to certain types of services which could not be provided internally, and thus increase their level of efficiency and consequently an overall degree of competitiveness of the regions, in which they operate. The objective of this work consists in an analysis of globalisation of services provision in several regions of the European Union (EU), from the perspective of their productive systems. We propose to focus the analysis on Slovakia and four Spanish autonomous regions (Aragón, Madrid, Valencia and Andalucía). What this selection of territories is due to? Slovakia is one of the European Union new member states, situated in the centre of Europe, the fact that could boost its participation in the general globalisation processes. The size of this country in terms of population and extension of its territory is comparable with the EU NUTS 2 regions. The mentioned Spanish regions are also NUTS 2 regions. They are similar to Slovakia in terms of population (Madrid, Valencia), territory (Aragón) or population density (Andalucía) and what is more important there are input-output tables available for these regions. The methodology we aim to apply is based on input-output tables which enable to appreciate a variety of intersectoral relations existing in the economy. After approaching the general situation using the globalization ratios (foreign direct investment and trade in services), by means of the input-output tables we will be able to calculate the level of tertiarization of economies using mostly direct and total effects (Camacho, 1999) and their difference (the degree of internationalization). Besides, input-output tables enable to appreciate the services share in the intermediate consumption of the whole economy and of its different branches; and the share of imported services within the total intermediate consumption. By means of the analysis proposed we aim not only to study the regional productive systems from the point of view of globalization of services provision but also to appreciate whether there are any similarities between Slovakia and Spanish regions. It could be interesting to find out if the role played by Bratislava is important enough so that the whole country would show resemblance to Madrid for example. Or otherwise it is more similar to more industrial regions of Aragón and Valencia or agriculture and tourism oriented Andalucía

Mixed care for elderly people in spain and france: a comparative analysis

The aim of this paper is to make a comparative analysis of the factors influencing the receipt of mixed care in over 65’s in France and Spain who receive informal care. As a data source we used the SHARE w4 for 2011. We applied binary logistic regression models for the analysis of the factors predicting the use of mixed care. The main results are gender is a significant factor in Spain but not in France. The income and the receipt of additional regular state subsidies or benefits increase the use of mixed care in both countries. Our findings suggest that the dynamics of spatial proximity to their social network are different. In France the social network is more dispersed in the territory, while in Spain it tends to be concentrated within less than 1 km. It was confirmed that mixed care is an additional complement for those receiving informal care

Análisis de la disforia de género en el ámbito pediátrico

Los castillos ideológicos pueden parecer fortalezas inexpugnables, construidas sobre sólidas verdades, pero la historia nos da abundantes ejemplos de su desmoronamiento, debido simplemente a que no responden a lo que realmente son el hombre y el mundo, a la verdad objetiva de las cosas

El Comité de Bioética de España (CBE)

Este trabajo presenta, en una primera parte, la historia del CBE desde su origen en 2007 hasta el 2023. En un segundo momento se analizan más en detalle los documentos producidos por el mismo con relación al aborto, la eutanasia y la objeción de conciencia. Las fuentes de información han sido las memorias anuales y los informes y opiniones producidos por el Comité. Tanto los aspectos históricos como el análisis de los documentos señalados pueden ser útiles para los interesados ya sea en el desarrollo de los comités nacionales de bioética o en las temáticas particulares a las que se dedican los documentos considerados

Beato Niels Stensen, científico, católico converso y obispo del siglo XVII

El volumen es el número 117 de la colección “Philosophy and Medicine”, traducción al inglés de la segunda edición de la obra en alemán: Radius in manu Dei: Ethos und Bioethik in Wer und Rezeption des Anatomen Niels Stensen (1638-1686), publicada en Munich por Aschendorff en 2014. Frank Sobiech es doctor en teología católica por la universidad de Münster (Alemania). El trabajo que presenta refleja también su formación en historia, latín y derecho. En la presentación del libro, el Cardenal Getrhard Ludwing Müller, Prefecto de la Congregación para la Doctrina de la Fe en esos años, hace ya referencia por Juan Pablo II en 1988. Anatomista danés, protestante convertido a la fe católica (1667), ordenado sacerdote (1675) y obispo (1677). En su persona se combinan el espíritu científico y el sentido ético del médico con las perspectivas teológica y pastoral del sacerdote. A él debemos descubrimientos en anatomía (conducto salivar que lleva su nombre, ovario en la especie humana) y contribuciones en la paleontología y la estratigrafía. En el prefacio, el autor señala que está presentando un estudio histórico-teológico que describe por primera vez la ética (ethos) de Stensen, sus implicaciones para la ética médica y la teología y su recepción por parte de los médicos y naturalistas desde el siglo XVII hasta la actualidad. El estudio trata principalmente el pensamiento de Stensen sobre la reproducción humana, la ética sexual, el inicio de la vida y la animación del embrión. Junto a ello encontramos interesantes y detalladas aportaciones, de tipo biográfico, sobre sus experiencias personales, primero como investigador y posteriormente como pastor. También es importante la descripción del contexto cultural en el que se desarrolló la vida de Stensen. El estudio es fruto del cuidadoso análisis de los escritos del mismo Stensen y de sus contemporáneos