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

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

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...

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Main Authors: M. Ariff, Akmalia, A. Hashim, Hafiza
Format: Article
Language:English
Published: Accounting Research Institute & Faculty of Accountancy 2014
Subjects:
Malaysia
Online Access:http://ir.uitm.edu.my/id/eprint/12412/
http://ir.uitm.edu.my/id/eprint/12412/1/AJ_AKMALIA%20M.%20ARIFF%20MAR%2014%201.pdf
id uitm-12412
recordtype eprints
spelling uitm-124122016-06-30T08:56:51Z http://ir.uitm.edu.my/id/eprint/12412/ Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim M. Ariff, Akmalia A. Hashim, Hafiza Malaysia 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. Accounting Research Institute & Faculty of Accountancy 2014 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/12412/1/AJ_AKMALIA%20M.%20ARIFF%20MAR%2014%201.pdf 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
repository_type Digital Repository
institution_category Local University
institution Universiti Teknologi MARA
building UiTM Institutional Repository
collection Online Access
language English
topic Malaysia
spellingShingle Malaysia
M. Ariff, Akmalia
A. Hashim, Hafiza
Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim
description 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.
format Article
author M. Ariff, Akmalia
A. Hashim, Hafiza
author_facet M. Ariff, Akmalia
A. Hashim, Hafiza
author_sort M. Ariff, Akmalia
title Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim
title_short Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim
title_full Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim
title_fullStr Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim
title_full_unstemmed Governance and the value relevance of tax avoidance / Akmalia M. Ariff and Hafiza A. Hashim
title_sort governance and the value relevance of tax avoidance / akmalia m. ariff and hafiza a. hashim
publisher Accounting Research Institute & Faculty of Accountancy
publishDate 2014
url http://ir.uitm.edu.my/id/eprint/12412/
http://ir.uitm.edu.my/id/eprint/12412/1/AJ_AKMALIA%20M.%20ARIFF%20MAR%2014%201.pdf
first_indexed 2023-09-18T22:49:13Z
last_indexed 2023-09-18T22:49:13Z
_version_ 1777417431474503680

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