Do industry affiliations affecting corporate tax avoidance in Malaysia?

• Main Author: Zainol Ariffin, Zaimah
• Format: Conference or Workshop Item
• Language: English
• Published: 2012
• Subjects: HJ Public Finance
• Online Access: http://repo.uum.edu.my/12340/1/2909140219.pdf; http://repo.uum.edu.my/12340/; http://www.globalresearch.com.my

Corporate tax avoidance studies have been addressed for a number of years within the developed market context, whereas corporate tax avoidance research for companies in developing countries is largely non-existent. Furthermore, prior studies of tax avoidance have stressed more individuals’ behavior rather than corporations’. Industry affiliations might be a potential explanation of tax avoidance activity as this action may also depend on the sensitivity of certain industries. The objective of the study is to examine the importance of industry affiliations as possible contributions of corporate tax avoidance mechanism. This study document the link between industry affiliations and corporate tax avoidance in an emerging market. This study tests the relationship by using a cross-sectional-time series valuation using panel data analyses which is Tobit estimations. The results confirm the importance of industry differences in explaining corporate tax avoidance activity.