Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy

Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy

The inflows of foreign investments into the developing countries have called for concerns. The opportunity for profit shifting across their various operating outlets has made multinational companies tax avoidant in the host countries. This study, thus, examines the tax impact of foreign investors...

Full description

Bibliographic Details
Main Authors: Salihu, Ibrahim Aramide, Sheikh Obid, Siti Normala, Annuar, Hairul Azlan
Format: Conference or Workshop Item
Language:English
Published: 2014
Subjects:
HF5601 Accounting. Bookkeeping
Online Access:http://irep.iium.edu.my/36327/
http://irep.iium.edu.my/36327/
http://irep.iium.edu.my/36327/1/Conference_JCAE_%28actual%29.pdf
id iium-36327
recordtype eprints
spelling iium-363272015-10-16T01:53:19Z http://irep.iium.edu.my/36327/ Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy Salihu, Ibrahim Aramide Sheikh Obid, Siti Normala Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping The inflows of foreign investments into the developing countries have called for concerns. The opportunity for profit shifting across their various operating outlets has made multinational companies tax avoidant in the host countries. This study, thus, examines the tax impact of foreign investors’ interests within the host developing economy. Using four similar measures of tax avoidance and three related measures of foreign investors’ interests, the sample data came from FTSE Bursa Malaysia Top 100 firms for the financial periods of 2009, 2010 and 2011. The analysis of the dynamic penal data using the system GMM estimator shows significant positive relationships between foreign investors’ interests and the measures of corporate tax avoidance among Malaysian large companies. Apart from being a useful guide for the selection of companies for tax audit, this result is also relevant for the proper evaluation of policies regarding foreign direct investment (FDI) in developing economies. 2014 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/36327/1/Conference_JCAE_%28actual%29.pdf Salihu, Ibrahim Aramide and Sheikh Obid, Siti Normala and Annuar, Hairul Azlan (2014) Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy. In: Journal of Contemporary Accounting and Economics (JCAE) Symposium 2014, 3-4 Jan 2014, Campus of Monash University, Bandar Sunway, Petaling Jaya. http://www.buseco.monash.edu.my/2014-jcae/index.html
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HF5601 Accounting. Bookkeeping
spellingShingle HF5601 Accounting. Bookkeeping
Salihu, Ibrahim Aramide
Sheikh Obid, Siti Normala
Annuar, Hairul Azlan
Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
description The inflows of foreign investments into the developing countries have called for concerns. The opportunity for profit shifting across their various operating outlets has made multinational companies tax avoidant in the host countries. This study, thus, examines the tax impact of foreign investors’ interests within the host developing economy. Using four similar measures of tax avoidance and three related measures of foreign investors’ interests, the sample data came from FTSE Bursa Malaysia Top 100 firms for the financial periods of 2009, 2010 and 2011. The analysis of the dynamic penal data using the system GMM estimator shows significant positive relationships between foreign investors’ interests and the measures of corporate tax avoidance among Malaysian large companies. Apart from being a useful guide for the selection of companies for tax audit, this result is also relevant for the proper evaluation of policies regarding foreign direct investment (FDI) in developing economies.
format Conference or Workshop Item
author Salihu, Ibrahim Aramide
Sheikh Obid, Siti Normala
Annuar, Hairul Azlan
author_facet Salihu, Ibrahim Aramide
Sheikh Obid, Siti Normala
Annuar, Hairul Azlan
author_sort Salihu, Ibrahim Aramide
title Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
title_short Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
title_full Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
title_fullStr Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
title_full_unstemmed Foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
title_sort foreign investors' interests and corporate tax avoidance: evidence from an emerging economy
publishDate 2014
url http://irep.iium.edu.my/36327/
http://irep.iium.edu.my/36327/
http://irep.iium.edu.my/36327/1/Conference_JCAE_%28actual%29.pdf
first_indexed 2023-09-18T20:52:01Z
last_indexed 2023-09-18T20:52:01Z
_version_ 1777410057895411712

Similar Items