The Role of Tax environment on the relationship between tax avoidance and earnings quality: Evidence from ASEAN Country1

Research output: Contribution to journalArticle

Abstract

This research aims to examine the relationship between the level of tax avoidance and the quality of earnings proxied by the accrual-based earnings management and earnings persistence. In addition, this research also aims to examine if the relationship between the level of tax avoidance and accrual-based earnings management and earnings persistence depends on the tax environment of a country. This research uses a cross-country analysis with the scope of ASEAN countries, consisting of Philippines, Indonesia, Malaysia, and Singapore. The result of this research indicates that the tax environment of a country affects the relationship between the level of tax avoidance and the accrual-based earnings management, but does not affect the relationship between the level of tax avoidance and earnings persistence.

Original languageEnglish
Pages (from-to)333-348
Number of pages16
JournalInternational Journal of Economic Research
Volume14
Issue number10
Publication statusPublished - 1 Jan 2017

Keywords

  • Accrual-based earnings management
  • Earnings persistence
  • Tax avoidance
  • Tax environment

Fingerprint Dive into the research topics of 'The Role of Tax environment on the relationship between tax avoidance and earnings quality: Evidence from ASEAN Country<sup>1</sup>'. Together they form a unique fingerprint.

  • Cite this