Influence of Income Tax Payment on Business Investment: A Case Study of Listed Companies from the Stock Exchange of Thailand

Abstract

The study aimed to investigate the level and pattern of income tax payment and business investment of listed companies from the Stock Exchange of Thailand (SET) during 2014 to 2018, and to examine an influence of income tax payment on business investment. Using annual reports during 2014 to 2018, population and sample were listed companies in the SET. Descriptive analysis and panel data analysis were used to analyze the data of this study. As the results, there was a decrease of income tax payment of Thai listed companies during 2014 to 2017 before increasing dramatically from. 2017 to 2018, while there was an increase of business investment during period being study. Moreover, the study found a negatively significant influence of income tax on business investment, while there was a positive relationship between industry type, business size, and business investment level. This study bas demonstrated an effective of income tax payment policy in Thailand on increasing private investment level Implications of study were to demonstrate whether positive accounting theory can be used to explain the negative relationship between income tax payment reduction and business investment level in Thailand as well as the other countries.