Malaysian Listed Firm’s Tax Avoidance: Another Earnings Management Strategy?
This study examines the role of tax avoidance on firm’s earnings management for a sample of 149 listed public firms in Malaysia over 2009 – 2013. Beneish M-score is used to measure the earnings management and effective tax rate to measure the tax avoidance. After controlling firm size, growth, lev...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management
2015
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/18122/ http://ir.unimas.my/id/eprint/18122/1/wali%205.pdf |
| Summary: | This study examines the role of tax avoidance on firm’s earnings management for a sample of 149 listed
public firms in Malaysia over 2009 – 2013. Beneish M-score is used to measure the earnings management
and effective tax rate to measure the tax avoidance. After controlling firm size, growth, leverage and
profitability, the result shows that only two variables which tax avoidance and growth are positively
significant towards the earnings management. The result implies that firms may manage their earning to
enjoy tax advantages. Moreover, management in growth firms’ tent engages better earning performance
and thus it may affect the firm investment strategies. |
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