GOVERNANCE AND THE VALUE RELEVANCE OF TAX AVOIDANCE
AbstractThis paper provides evidence on the link amongst governance, tax avoidanceand fi rm value. We examine whether tax avoidance is associated with fi rmvalue and whether the strength of such relation is dependent on the quality ofgovernance. We employ Effective Tax Rates (ETR) to measure tax avoidanceand the Malaysia Corporate Governance (MCG) Index to rate fi rm-levelgovernance. The fi ndings rely on analysis of 203 fi rms that are listed in theMCG Index between 2009 and 2011. We fi nd that tax avoidance is viewedby investors as a value-enhancing activity, and that the value relevance oftax avoidance is greater for fi rms with higher-quality governance.
Dec 30, 2014
How to Cite
ARIFF, Akmalia M.; A. HASHIM, Hafiza. GOVERNANCE AND THE VALUE RELEVANCE OF TAX AVOIDANCE. Management & Accounting Review (MAR), [S.l.], v. 13, n. 2, p. 87-107, dec. 2014. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/34>. Date accessed: 31 oct. 2020. doi: http://dx.doi.org/10.24191/mar.v13i2.34.