Measures of corporate tax avoidance: empirical evidence from an emerging economy

The prevalence of tax avoidance practices has necessitated several efforts in understanding the determinants of the menace. While these efforts are highly commendable, the studies so far lack the proper construct for measuring the term ‘corporate tax avoidance’. This has posed some limitations to...

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Main Authors:	Salihu, Ibrahim Aramide, Sheikh Obid, Siti Normala, Annuar, Hairul Azlan
Format:	Article
Language:	English
Published:	Universiti Malaysia Sarawak 2013
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/36193/ http://irep.iium.edu.my/36193/ http://irep.iium.edu.my/36193/1/IJBS_-_Measures_of_corporate_Tax_Avoidance.pdf

id	iium-36193
recordtype	eprints
spelling	iium-361932014-07-17T07:26:18Z http://irep.iium.edu.my/36193/ Measures of corporate tax avoidance: empirical evidence from an emerging economy Salihu, Ibrahim Aramide Sheikh Obid, Siti Normala Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping The prevalence of tax avoidance practices has necessitated several efforts in understanding the determinants of the menace. While these efforts are highly commendable, the studies so far lack the proper construct for measuring the term ‘corporate tax avoidance’. This has posed some limitations to the interpretation of research findings in this respect. To this end, Hanlon and Heitzman (2010) proposed a measure for the conforming tax avoidance, which has not receivedany empirical investigation. The objective of this study, therefore, is to provide empirical evidence for or against the proposed measure. To achieve this objective, three established measures were compared with the proposed measure using the annual reports of the Malaysian top 100 companies based on FTSE tradable index. The results of the ANOVA and post hoc test show the proposed measure to be statistically and significantly different at 5%. The finding of the study is of great relevance for proper interpretation of research findings, especially within the context of the study. Universiti Malaysia Sarawak 2013-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/36193/1/IJBS_-_Measures_of_corporate_Tax_Avoidance.pdf Salihu, Ibrahim Aramide and Sheikh Obid, Siti Normala and Annuar, Hairul Azlan (2013) Measures of corporate tax avoidance: empirical evidence from an emerging economy. International Journal of Business and Society, 14 (3). pp. 412-427. ISSN 1511-6670 http://www.ijbs.unimas.my/index.php/most-popular/item/228-measures-of-corporate-tax-avoidance-empirical-evidence-from-an-emerging-economy
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 Measures of corporate tax avoidance: empirical evidence from an emerging economy
description	The prevalence of tax avoidance practices has necessitated several efforts in understanding the determinants of the menace. While these efforts are highly commendable, the studies so far lack the proper construct for measuring the term ‘corporate tax avoidance’. This has posed some limitations to the interpretation of research findings in this respect. To this end, Hanlon and Heitzman (2010) proposed a measure for the conforming tax avoidance, which has not receivedany empirical investigation. The objective of this study, therefore, is to provide empirical evidence for or against the proposed measure. To achieve this objective, three established measures were compared with the proposed measure using the annual reports of the Malaysian top 100 companies based on FTSE tradable index. The results of the ANOVA and post hoc test show the proposed measure to be statistically and significantly different at 5%. The finding of the study is of great relevance for proper interpretation of research findings, especially within the context of the study.
format	Article
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	Measures of corporate tax avoidance: empirical evidence from an emerging economy
title_short	Measures of corporate tax avoidance: empirical evidence from an emerging economy
title_full	Measures of corporate tax avoidance: empirical evidence from an emerging economy
title_fullStr	Measures of corporate tax avoidance: empirical evidence from an emerging economy
title_full_unstemmed	Measures of corporate tax avoidance: empirical evidence from an emerging economy
title_sort	measures of corporate tax avoidance: empirical evidence from an emerging economy
publisher	Universiti Malaysia Sarawak
publishDate	2013
url	http://irep.iium.edu.my/36193/ http://irep.iium.edu.my/36193/ http://irep.iium.edu.my/36193/1/IJBS_-_Measures_of_corporate_Tax_Avoidance.pdf
first_indexed	2023-09-18T20:51:48Z
last_indexed	2023-09-18T20:51:48Z
_version_	1777410044273360896

Measures of corporate tax avoidance: empirical evidence from an emerging economy

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