Correlation between tax holidays and earning management: An empirical study (Kolerasi antara percutian cukai dengan pengurusan perolehan : satu analisis empirikal)

Zinatul Ashiqin Bachek, and Norsiah Ahmad, and Norman Mohd Saleh, (2012) Correlation between tax holidays and earning management: An empirical study (Kolerasi antara percutian cukai dengan pengurusan perolehan : satu analisis empirikal). Jurnal Pengurusan, 34 . pp. 55-64. ISSN 0127-2713

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Abstract

This study investigates tax avoidance activities among tax-exempt malaysian companies.Pioneer status companies to manage earnings by shifting income throught certain periods and thereby minimizing tax liabilities. Following the literature, discretionary current accruals are used as proxy for earnings management. A control sample is introduced to identify abnormal accruals induced by the pioneer status of companies.Multiple regression analysis indicates that companies manage their earnings to minimize their taxburden. Specifically, pioneer status companies in Malaysia accelerate revenues to the year prior to the expiration of their tax exemptions to reduce tax liabilities in subsequent years.

Item Type:Article
Keywords:Tax holidays;Earning management
Journal:Jurnal Pengurusan
ID Code:5448
Deposited By: Mr Azam
Deposited On:14 Aug 2012 08:22
Last Modified:14 Dec 2016 06:38

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