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...
| Main Authors: | , , |
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| Format: | Proceeding Paper |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/36327/1/Conference_JCAE_%28actual%29.pdf |
| _version_ | 1796878727677739008 |
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| 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 |
| collection | IIUM |
| 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. |
| first_indexed | 2024-03-05T23:25:38Z |
| format | Proceeding Paper |
| id | oai:generic.eprints.org:36327 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T23:25:38Z |
| publishDate | 2014 |
| record_format | dspace |
| spelling | oai:generic.eprints.org: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 Proceeding Paper 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 |
| 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 |
| title | 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_short | 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 |
| topic | HF5601 Accounting. Bookkeeping |
| url | http://irep.iium.edu.my/36327/1/Conference_JCAE_%28actual%29.pdf |
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