2025, Vol. 6, Issue 2, Part Q
Assessing the nexus between corporate tax planning strategies and firm performance: A comprehensive analysis of Hindustan Unilever limited
Author(s): Shweta Kudavakkalagi, Shreya Kori, Gangubai Gadadan, J Shashikala, Sahil M, Rakshita H and Mahesh Bendigeri
Abstract: Corporate tax planning plays an important role in managing a company’s finances by reducing tax liability within legal boundaries while supporting growth and compliance. This study focuses on Hindustan Unilever Limited (HUL), one of India’s leading FMCG companies, to understand how tax planning influences financial performance. Using data from 2016-2025, regression analysis was conducted with variables such as capital intensity, leverage, inventory intensity, and effective tax rate (ETR), measured against Return on Equity (ROE). The findings show that capital intensity has a strong positive impact on ROE, leverage shows a moderate effect, while inventory intensity has no significant impact. ETR shows a positive but statistically insignificant relationship with ROE. The results suggest that HUL’s profitability depends more on operational efficiency and capital investments rather than aggressive tax planning. This highlights the role of sustainable financial strategies in enhancing firm performance.
DOI: 10.22271/27084515.2025.v6.i2q.885
Pages: 1573-1577 | Views: 112 | Downloads: 37
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How to cite this article:
Shweta Kudavakkalagi, Shreya Kori, Gangubai Gadadan, J Shashikala, Sahil M, Rakshita H, Mahesh Bendigeri. Assessing the nexus between corporate tax planning strategies and firm performance: A comprehensive analysis of Hindustan Unilever limited. Asian J Manage Commerce 2025;6(2):1573-1577. DOI: 10.22271/27084515.2025.v6.i2q.885
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