Political Connection Types and Corporate Tax Avoidance: Evidence from Malaysia

Chwee Ming Tee (), Teng-Tenk Melissa Teoh () and Chee Wooi Hooy ()
Additional contact information
Chwee Ming Tee: School of Management, Universiti Sains Malaysia
Teng-Tenk Melissa Teoh: Faculty of Business, Economics and Accounting, HELP University
Chee Wooi Hooy: School of Management, Universiti Sains Malaysia

Malaysian Journal of Economic Studies, 2022, vol. 59, issue 2, 199-220

Abstract: This study examines whether dissimilar types of politically connected firms (PCFs) are related to corporate tax avoidance. Additionally, it investigates whether this association is moderated by chief executive officer (CEO) shareholding and institutional ownership. Using the dataset of Malaysian public listed companies from 2002 till 2018, our findings suggest that PCFs are associated with higher corporate tax avoidance which is largely driven by older PCFs and government-linked companies (GLCs). Further analy-ses reveal that the association between older PCFs and GLCs and higher corporate tax avoidance is stronger in firms with higher CEO shareholding and institutional ownership.

Keywords: Corporate tax avoidance; political connections; institutional investor; CEO (search for similar items in EconPapers)
JEL-codes: G2 G3 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mjr:journl:v:59:y:2022:i:2:p:199-220

DOI: 10.22452/MJES.vol59no2.2

Access Statistics for this article

Malaysian Journal of Economic Studies is currently edited by Lim Kian Ping

More articles in Malaysian Journal of Economic Studies from Faculty of Business and Economics, University of Malaya & Malaysian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Malaysian Economic Association ().