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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| Format: | Article |
| Language: | English |
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Universiti Malaysia Sarawak
2013
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/36193/ http://irep.iium.edu.my/36193/1/IJBS_-_Measures_of_corporate_Tax_Avoidance.pdf |
| _version_ | 1848781178437369856 |
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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 |
| building | IIUM Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T15:45:26Z |
| format | Article |
| id | iium-36193 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:45:26Z |
| publishDate | 2013 |
| publisher | Universiti Malaysia Sarawak |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 |
| 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 |
| title | 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_short | Measures of corporate tax avoidance: empirical evidence from an emerging economy |
| title_sort | measures of corporate tax avoidance: empirical evidence from an emerging economy |
| topic | HF5601 Accounting. Bookkeeping |
| 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 |