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Components of tax planning and characteristics of top management team

Tax planning activities can be detrimental to the welfare of a country’s nations. Firms’ tax planning strategies can be classified according to the activities’ components, i.e. permanent, temporary and statutory tax rates differences. Upper echelons theory explains top management team (TMT) as cor...

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Main Author: Nor Shaipah Abdul Wahab,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/15649/1/40813-130404-1-PB.pdf
http://journalarticle.ukm.my/15649/
http://ejournal.ukm.my/pengurusan/issue/view/1283
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spelling my-ukm.journal.156492020-11-13T02:31:06Z http://journalarticle.ukm.my/15649/ Components of tax planning and characteristics of top management team Nor Shaipah Abdul Wahab, Tax planning activities can be detrimental to the welfare of a country’s nations. Firms’ tax planning strategies can be classified according to the activities’ components, i.e. permanent, temporary and statutory tax rates differences. Upper echelons theory explains top management team (TMT) as corporate elite whose decisions can be predicted through its members’ cognitive, value and perceptions. This study therefore attempts to examine the extent the characteristics of TMT members, in terms of age, tenure, education and gender, can explain tax planning strategies, consisting permanent, temporary and statutory tax rates differences. The sample is 216 Malaysian listed firms from 2008 to 2015. This study finds that tenure and education explain tax planning and permanent differences negatively. In contrast, tenure affects statutory tax rates differences positively. This study contributes to literature and practice by providing further evidence to support upper echelons theory in explaining the influence of TMT on tax strategies. This study also provides new evidence of tax strategies from a governance perspective. The findings suggest to the tax authority that TMT characteristics are additional factors to be considered in tax audit framework. The study also contributes to public by highlighting that TMT characteristics are useful to predict tax planning strategies. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15649/1/40813-130404-1-PB.pdf Nor Shaipah Abdul Wahab, (2020) Components of tax planning and characteristics of top management team. Jurnal Pengurusan, 58 . pp. 1-14. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/1283
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description Tax planning activities can be detrimental to the welfare of a country’s nations. Firms’ tax planning strategies can be classified according to the activities’ components, i.e. permanent, temporary and statutory tax rates differences. Upper echelons theory explains top management team (TMT) as corporate elite whose decisions can be predicted through its members’ cognitive, value and perceptions. This study therefore attempts to examine the extent the characteristics of TMT members, in terms of age, tenure, education and gender, can explain tax planning strategies, consisting permanent, temporary and statutory tax rates differences. The sample is 216 Malaysian listed firms from 2008 to 2015. This study finds that tenure and education explain tax planning and permanent differences negatively. In contrast, tenure affects statutory tax rates differences positively. This study contributes to literature and practice by providing further evidence to support upper echelons theory in explaining the influence of TMT on tax strategies. This study also provides new evidence of tax strategies from a governance perspective. The findings suggest to the tax authority that TMT characteristics are additional factors to be considered in tax audit framework. The study also contributes to public by highlighting that TMT characteristics are useful to predict tax planning strategies.
format Article
author Nor Shaipah Abdul Wahab,
spellingShingle Nor Shaipah Abdul Wahab,
Components of tax planning and characteristics of top management team
author_facet Nor Shaipah Abdul Wahab,
author_sort Nor Shaipah Abdul Wahab,
title Components of tax planning and characteristics of top management team
title_short Components of tax planning and characteristics of top management team
title_full Components of tax planning and characteristics of top management team
title_fullStr Components of tax planning and characteristics of top management team
title_full_unstemmed Components of tax planning and characteristics of top management team
title_sort components of tax planning and characteristics of top management team
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/15649/1/40813-130404-1-PB.pdf
http://journalarticle.ukm.my/15649/
http://ejournal.ukm.my/pengurusan/issue/view/1283
_version_ 1683231773231677440
score 13.211869

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