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Tax Risk, Corporate Governance, And The Valuation Of Tax Avoidance Across Philippine Firms: How Do Investors Value Corporate Tax Avoidance?, Christine E. Ang, Shawn Luther S. Chan, Sean Ellison G. Sow, Siegwald K. Yap, Madeleine B. Estabillo, Anne Go, Angelo A. Unite
Tax Risk, Corporate Governance, And The Valuation Of Tax Avoidance Across Philippine Firms: How Do Investors Value Corporate Tax Avoidance?, Christine E. Ang, Shawn Luther S. Chan, Sean Ellison G. Sow, Siegwald K. Yap, Madeleine B. Estabillo, Anne Go, Angelo A. Unite
Angelo King Institute for Economic and Business Studies (AKI)
Tax avoidance has traditionally been thought to enhance firm value because it generates cash savings for reinvestment or distribution to shareholders. More recent literature, however, suggests that tax avoidance valuation may not be so simple. Desai and Dharmapala (2009) introduced the “agency perspective” on tax avoidance, arguing that investors consider the risk of tax avoidance as opening opportunities for managers to extract rents from their firms. Positive tax avoidance value would therefore be conditional on good corporate governance quality. Drake et al. (2017) introduced yet another dimension—tax risk—to the valuation of tax avoidance, arguing that tax avoidance that comes with …
Limits, Transparency, And Board Independence Against Tax Avoidance, Francis R. Concepcion, Cheri Mae R. Laguinday, Trisha Amber T. Ong Hianghuy
Limits, Transparency, And Board Independence Against Tax Avoidance, Francis R. Concepcion, Cheri Mae R. Laguinday, Trisha Amber T. Ong Hianghuy
Angelo King Institute for Economic and Business Studies (AKI)
Taxes are levied by the government primarily for public service purposes (De Leon & De Leon, 2016).However, the high tax rates and narrow tax base imposed in the Philippines become burdensome for taxpayers and also decrease total government revenue collections (Diokno, 2008). It is shown in this study that foreign ownership and customer concentration both increase the levels of corporate tax avoidance practiced by firms while board independence decreases the same. Hence, we do not support the government’s plan to ease foreign ownership restrictions through the amendment of the Constitution (Romualdez, 2017) because easing the current restrictions may entail decreased …