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

Foreign investment inflows into developing countries has become a cause for concern, as the opportunity for profit shifting across their various operating outlets has made multinational companies tax avoidant in host countries. Thus, this study examines the tax impact of foreign investors’ intere...

Full description

Bibliographic Details
Main Authors:	Salihu, Ibrahim Aramide, Annuar, Hairul Azlan, Sheikh Obid, Siti Normala
Format:	Article
Language:	English English
Published:	Elsevier 2015
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/42902/ http://irep.iium.edu.my/42902/ http://irep.iium.edu.my/42902/1/JCAE_-_Foreign_Investors%27_Interests_and_Corporate_Tax_Avoidance.pdf http://irep.iium.edu.my/42902/4/42902_Foreign%20investors%E2%80%99%20interests%20and%20corporate_SCOPUS.pdf

id	iium-42902
recordtype	eprints
spelling	iium-429022017-11-08T04:26:17Z http://irep.iium.edu.my/42902/ Foreign investors’ interests and corporate tax avoidance: evidence from an emerging economy Salihu, Ibrahim Aramide Annuar, Hairul Azlan Sheikh Obid, Siti Normala HF5601 Accounting. Bookkeeping Foreign investment inflows into developing countries has become a cause for concern, as the opportunity for profit shifting across their various operating outlets has made multinational companies tax avoidant in host countries. Thus, this study examines the tax impact of foreign investors’ interests within a host developing economy. The sample data were extracted from annual reports of the FTSE Bursa Malaysia Top 100 firms for the financial periods of 2009, 2010 and 2011. Using four similar measures of tax avoidance and three related measures of foreign investors’ interest, our analysis of the dynamic panel data with a system GMM estimator shows significant positive relationships between foreign investors’ interests and the measures of corporate tax avoidance among large Malaysian companies. This result suggests the possibility of multinational companies exploiting their international scales of operations to avoid taxes in both host and parent countries. Thus, emerging economies need to consider the residual benefits of foreign direct investment in the presence of such tax avoidance in their pursuit of economic development. Elsevier 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/42902/1/JCAE_-_Foreign_Investors%27_Interests_and_Corporate_Tax_Avoidance.pdf application/pdf en http://irep.iium.edu.my/42902/4/42902_Foreign%20investors%E2%80%99%20interests%20and%20corporate_SCOPUS.pdf Salihu, Ibrahim Aramide and Annuar, Hairul Azlan and Sheikh Obid, Siti Normala (2015) Foreign investors’ interests and corporate tax avoidance: evidence from an emerging economy. Journal of Contemporary Accounting & Economics, 11. pp. 138-147. ISSN 1815 5669 http://www.sciencedirect.com/science/journal/18155669
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Salihu, Ibrahim Aramide Annuar, Hairul Azlan Sheikh Obid, Siti Normala Foreign investors’ interests and corporate tax avoidance: evidence from an emerging economy
description	Foreign investment inflows into developing countries has become a cause for concern, as the opportunity for profit shifting across their various operating outlets has made multinational companies tax avoidant in host countries. Thus, this study examines the tax impact of foreign investors’ interests within a host developing economy. The sample data were extracted from annual reports of the FTSE Bursa Malaysia Top 100 firms for the financial periods of 2009, 2010 and 2011. Using four similar measures of tax avoidance and three related measures of foreign investors’ interest, our analysis of the dynamic panel data with a system GMM estimator shows significant positive relationships between foreign investors’ interests and the measures of corporate tax avoidance among large Malaysian companies. This result suggests the possibility of multinational companies exploiting their international scales of operations to avoid taxes in both host and parent countries. Thus, emerging economies need to consider the residual benefits of foreign direct investment in the presence of such tax avoidance in their pursuit of economic development.
format	Article
author	Salihu, Ibrahim Aramide Annuar, Hairul Azlan Sheikh Obid, Siti Normala
author_facet	Salihu, Ibrahim Aramide Annuar, Hairul Azlan Sheikh Obid, Siti Normala
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
publisher	Elsevier
publishDate	2015
url	http://irep.iium.edu.my/42902/ http://irep.iium.edu.my/42902/ http://irep.iium.edu.my/42902/1/JCAE_-_Foreign_Investors%27_Interests_and_Corporate_Tax_Avoidance.pdf http://irep.iium.edu.my/42902/4/42902_Foreign%20investors%E2%80%99%20interests%20and%20corporate_SCOPUS.pdf
first_indexed	2023-09-18T21:01:08Z
last_indexed	2023-09-18T21:01:08Z
_version_	1777410630703120384

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

Similar Items