Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim

M. Ariff, Akmalia and A. Hashim, Hafiza (2014) Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim. Malaysian Accounting Review, 13 (2). pp. 87-107. ISSN 1675-4077

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Abstract

This paper provides evidence on the link amongst governance, tax avoidance and firm value. We examine whether tax avoidance is associated with firm value and whether the strength of such relation is dependent on the quality of governance. We employ Effective Tax Rates (ETR) to measure tax avoidance and the Malaysia Corporate Governance (MCG) Index to rate firm-level governance. The findings rely on analysis of 203 firms that are listed in the MCG Index between 2009 and 2011. We find that tax avoidance is viewed by investors as a value-enhancing activity, and that the value relevance of tax avoidance is greater for firms with higher-quality governance.

Item Type: Article
Creators:
CreatorsID Num.
M. Ariff, AkmaliaUNSPECIFIED
A. Hashim, HafizaUNSPECIFIED
Subjects: H Social Sciences > HJ Public Finance > Tax collection. Taxpayer compliance > Malaysia
?? HJ2361.M35 ??
Divisions: Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
ISSN: 1675-4077
Volume: 13
Number: 2
Page Range: pp. 87-107
Item ID: 12412
Uncontrolled Keywords: tax avoidance, MCG Index, Malaysia
Last Modified: 30 Jun 2016 08:56
Depositing User: Staf Pendigitalan 1
URI: http://ir.uitm.edu.my/id/eprint/12412

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