Tax avoidance and firm value relationship in the listed companies of Bangladesh : a conceptual overview / Md. Nazrul Islam and Fathyah Hashim

Islam, Md. Nazrul and Hashim, Fathyah (2020) Tax avoidance and firm value relationship in the listed companies of Bangladesh : a conceptual overview / Md. Nazrul Islam and Fathyah Hashim. Journal of International Business, Economics and Entrepreneurship, 5 (2). pp. 23-29. ISSN 2550-1429

Official URL: https://jibe.uitm.edu.my

Abstract

The aim of the present paper is to look at whether corporate tax avoidance (CTA) contributes to firm value in the perspective of Bangladeshi listed firms. Our conceptual assumption is that in presence of agency conflicts, corporate managers take on tax avoidance (TA) initiatives to extract their own benefits through taking advantage as of the loopholes of current tax laws. Further, CTA does not fulfill the ethical and social demands. Agency costs and social irresponsibility that produce from TA activities could adversely influence the firm value. It is also among the first paper focusing on the TA and firm value association in the perspective of Bangladeshi listed firms after the gradual decline of stock market index during the year 2019, whereas most of the adjacent South Asian countries’ bourse has achieved gradual improve. However, the present paper aims to integrate relevant studies and theories to extend the intended potentials for limiting corporate tax avoidance to enhance the value of the listed companies in Bangladesh. This study has evaluated CTA behavior from a combination of agency theory and stakeholder theory standpoint rather than traditional sight of tax burden decreasing strategy. Moreover, as existing literature reveals inconsistent and less evidence that attempt to examine the consequence of CTA on firm value, the present paper proposes and shows an imperative proposition for potential empirical research.

Metadata

Item Type: Article
Creators:
CreatorsEmail / ID. Num
Islam, Md. Nazrulnazrulru@yahoo.com
Hashim, FathyahUNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
H Social Sciences > HJ Public Finance > Tax collection. Taxpayer compliance
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Journal of International Business, Economics and Entrepreneurship
Journal: UiTM Journal > Journal of International Business, Economics and Entrepreneurship (JIBE)
ISSN: 2550-1429
Volume: 5
Number: 2
Page Range: pp. 23-29
Official URL: https://jibe.uitm.edu.my
Item ID: 40690
Uncontrolled Keywords: Agency Theory, Corporate Tax Avoidance, Firm Value
URI: http://ir.uitm.edu.my/id/eprint/40690

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