Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.]
The purpose of this study is to investigate the impact of government institutional shareholdings via government-linked investment companies (GLICs) on tax aggressiveness strategies of Malaysian government-linked companies (GLCs). This study uses effective taxes rate (ETR) and tax paid to operating c...
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| Format: | Article |
| Language: | English |
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Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA (UiTM)
2018
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/29524/ |
| _version_ | 1848807255282024448 |
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| author | Abdul Rahman, Rahayu Mahmud, Nur Farizan Mazhani Zaini, Naimah Meor Zawawi, Maizura |
| author_facet | Abdul Rahman, Rahayu Mahmud, Nur Farizan Mazhani Zaini, Naimah Meor Zawawi, Maizura |
| author_sort | Abdul Rahman, Rahayu |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | The purpose of this study is to investigate the impact of government institutional shareholdings via government-linked investment companies (GLICs) on tax aggressiveness strategies of Malaysian government-linked companies (GLCs). This study uses effective taxes rate (ETR) and tax paid to operating cash flow (TPOC) as proxies of tax aggressiveness. The GLCs will be classified as tax aggressive firms if the ETR and TPOC are less than the corporate statutory tax rates. Using a sample of 75 firm-year observations of Malaysian GLCs listed on Bursa Malaysia from 2010 to 2014, this study finds that GLCs are less likely to engage in tax aggressive. The findings show that there is a significant and negative relationship between GLICs shareholdings and tax aggressiveness. The evidence suggests that GLICs are the effective government institutional investors in mitigating tax aggressive strategies of their portfolio firms. In addition, this study provide empirical evidence to highlight the commitment of GLICs in protecting government revenues by avoiding aggressive tax planning in their portfolio firms in order to assist government’s social and political objectives. This study is one of the few studies that examine the effectiveness of GLICs monitoring in mitigating tax aggresiveness in GLCs. This study extend prior studies by using both conforming and non confirming measures of corporate tax avoidance andsegregating GLICs shareholding into two categories; Federal Government Pension Investment Funds (FGPIF) and other GLICs (OFGLIC). |
| first_indexed | 2025-11-14T22:39:55Z |
| format | Article |
| id | uitm-29524 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:39:55Z |
| publishDate | 2018 |
| publisher | Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA (UiTM) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-295242020-04-07T03:24:27Z https://ir.uitm.edu.my/id/eprint/29524/ Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] apmaj Abdul Rahman, Rahayu Mahmud, Nur Farizan Mazhani Zaini, Naimah Meor Zawawi, Maizura Malaysia The purpose of this study is to investigate the impact of government institutional shareholdings via government-linked investment companies (GLICs) on tax aggressiveness strategies of Malaysian government-linked companies (GLCs). This study uses effective taxes rate (ETR) and tax paid to operating cash flow (TPOC) as proxies of tax aggressiveness. The GLCs will be classified as tax aggressive firms if the ETR and TPOC are less than the corporate statutory tax rates. Using a sample of 75 firm-year observations of Malaysian GLCs listed on Bursa Malaysia from 2010 to 2014, this study finds that GLCs are less likely to engage in tax aggressive. The findings show that there is a significant and negative relationship between GLICs shareholdings and tax aggressiveness. The evidence suggests that GLICs are the effective government institutional investors in mitigating tax aggressive strategies of their portfolio firms. In addition, this study provide empirical evidence to highlight the commitment of GLICs in protecting government revenues by avoiding aggressive tax planning in their portfolio firms in order to assist government’s social and political objectives. This study is one of the few studies that examine the effectiveness of GLICs monitoring in mitigating tax aggresiveness in GLCs. This study extend prior studies by using both conforming and non confirming measures of corporate tax avoidance andsegregating GLICs shareholding into two categories; Federal Government Pension Investment Funds (FGPIF) and other GLICs (OFGLIC). Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA (UiTM) 2018-12 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/29524/1/29524.pdf Abdul Rahman, Rahayu and Mahmud, Nur Farizan Mazhani and Zaini, Naimah and Meor Zawawi, Maizura (2018) Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.]. (2018) Asia-Pacific Management Accounting Journal (APMAJ) <https://ir.uitm.edu.my/view/publication/Asia-Pacific_Management_Accounting_Journal_=28APMAJ=29.html>, 13 (3). pp. 149-166. ISSN 2550-1631 https://apmaj.uitm.edu.my/ |
| spellingShingle | Malaysia Abdul Rahman, Rahayu Mahmud, Nur Farizan Mazhani Zaini, Naimah Meor Zawawi, Maizura Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] |
| title | Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] |
| title_full | Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] |
| title_fullStr | Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] |
| title_full_unstemmed | Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] |
| title_short | Government-linked investment companies' shareholdings and tax aggressiveness / Rahayu Abdul Rahman... [et al.] |
| title_sort | government-linked investment companies' shareholdings and tax aggressiveness / rahayu abdul rahman... [et al.] |
| topic | Malaysia |
| url | https://ir.uitm.edu.my/id/eprint/29524/ https://ir.uitm.edu.my/id/eprint/29524/ |