Exploring the relationship between tax planning and firm performance : a meta- analysis approach

The paper aims to analyse the relationship between tax planning and firm performance using meta-analysis. A total of 13 papers from the Scopus and Google Scholar databases, comprising a sample of 3254, have been collected and analysed. The analysis has been done with the help of Jamovi software. We found that tax planning has an impact on firms' financial performance, but such an effect is low. So, in addition to tax planning, firms should focus on other aspects to improve their performance. We have also applied meta-regression, which shows that firm age is a significant moderator of the relationship between tax planning and firm performance. At the same time, leverage is significant at 10% with a high R square. However, Firm size is found to be an insignificant moderator. This finding suggests that new firms should give more effort to tax planning, as the efficiency of tax planning in improving the performance of a firm increases with age and leverage should be given more importance while making tax planning for all firms. This study is the first of its kind to investigate such a relationship using meta-analysis, and it will be helpful for academicians and companies in making important decisions.