The implication of tax rates on corporate capital investment / Nor Shaipah Abdul Wahab... [et al.]

Abdul Wahab, Nor Shaipah and Aripin, Norhani and Md Idris, Kamil (2007) The implication of tax rates on corporate capital investment / Nor Shaipah Abdul Wahab... [et al.]. Malaysian Accounting Review, 6 (1). pp. 45-64. ISSN 1675-4077

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The purpose of this study is to determine the relationship of tax rates and corporate capital investment behavior. In addition, this study seeks to investigate the influence of tax rates reductions on capital investment. A total of 120 companies were selected as the sample. The findings demonstrated that
there are significant negative associations between corporate tax rate and
non-resident individual tax rate reduction with corporate capital investment.
In addition, the results revealed the significant influence of market-to-book
equity ratio and lagged investment on capital investment. With respect to
industry classification, property and plantation industries are found to be
significant and negatively associated with capital investment. This research
would be useful to the authorities in determining the implication of tax rate
reduction on capital investment, which in turn will reflect the overall economy.


Item Type: Article
Email / ID Num.
Abdul Wahab, Nor Shaipah
Aripin, Norhani
Md Idris, Kamil
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 1675-4077
Volume: 6
Number: 1
Page Range: pp. 45-64
Keywords: Corporate tax rate, individual tax rate, capital investment, tax rates reductions
Date: June 2007
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