scholarly journals The Study on the Impact of Tax Avoidance over Capital Market Responses

2012 ◽  
Vol null (42) ◽  
pp. 327-358
Author(s):  
Dongchoon Choi ◽  
이윤규
Keyword(s):  
Capital Market ◽  
Tax Avoidance ◽  
Market Responses ◽  
The Impact

THE IMPACT OF UKRAINE'S EXCISE DUTY POLICY ON THE TRANSFORMATION PROCESSES OF THE TOBACCO MARKET

2020 ◽  
Vol 2020 (10) ◽  
pp. 19-33
Author(s):  
Nadiia NOVYTSKA ◽  
◽  
Inna KHLIEBNIKOVA ◽  
Keyword(s):  
Structural Changes ◽  
Tax Avoidance ◽  
Transformation Process ◽  
State Regulation ◽  
Tobacco Products ◽  
Excise Duty ◽  
Increasing Demand ◽  
High Level ◽  
The Impact ◽  
Transformation Processes

The market of tobacco products in Ukraine is one of the most dynamic and competitive. It develops under the influence of certain factors that cause structural changes, therefore, the aim of the article is to conduct a comprehensive analysis of transformation processes in the market of tobacco and their alternatives in Ukraine and identify the factors that cause them. The high level of tax burden and the proliferation of alternative products with a potentially lower risk to human health, including heating tobacco products and e-cigarettes, are key factors in the market’s transformation process. Their presence leads to an increase in illicit turnover of tobacco products, which accounts for 6.37% of the market, and the gradual replacement of cigarettes with alternative products, which account for 12.95%. The presence on the market of products that are not taxed or taxed at lower rates is one of the reasons for the reduction of excise duty revenues. According to the results of 2019, the planned indicators of revenues were not met by 23.5%. Other reasons for non-fulfillment of excise duty revenues include: declining dynamics of the tobacco products market; reduction in the number of smokers; reorientation of «cheap whites» cigarette flows from Ukraine to neighboring countries; tax avoidance. Prospects for further research are identified, namely the need to develop measures for state regulation and optimization of excise duty taxation of tobacco products and their alternatives, taking into account the risks to public health and increasing demand of illegal products.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

scholarly journals The Innovation of Government Bonds in the Growth of an Emergent Capital Market

2021 ◽  
Vol 7 (1) ◽  
pp. 103
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Philip Olasupo Alege
Keyword(s):  
Capital Market ◽  
Research Work ◽  
Government Bonds ◽  
Market Capitalization ◽  
Market Growth ◽  
Explanatory Variables ◽  
The Government ◽  
The Impact ◽  
Total Market ◽  
The Capital Market

The growth of an emerging capital market is necessary and requires all available resources and inputs from various sources to realize this objective. Several debates on government bonds’ contribution to Nigeria’s capital market developmental growth have ensued but have not triggered comprehensive studies in this area. The present research work seeks to close the breach by probing the impact of government bonds on developing the capital market in Nigeria from 2003–2019. We employ total market capitalization as the response variable to proxy the capital market, while various government bonds serve as the independent variables. The inflation rate moderates the predictor components. The research uses multiple regression technique to assess the explanatory variables’ impact on the total market capitalization. At the same time, diagnostic tests help guarantee the normality of the regression model’s data distribution and appropriateness. The findings reveal that the Federal Government of Nigeria’s (FGN) bond is statistically significant and positive in influencing Nigeria’s capital market growth. The other predictor variables are not found significant in this study. The study suggests that the Government should improve on the government bonds’ coupon, while still upholding the none default norm in paying interest and refunding principal to investors when due.

Women on the board of directors and corporate tax aggressiveness in Australia

2016 ◽  
Vol 29 (3) ◽  
pp. 313-331 ◽  
Author(s):  
Grant Richardson ◽  
Grantley Taylor ◽  
Roman Lanis
Keyword(s):  
Board Of Directors ◽  
Selection Bias ◽  
Tax Avoidance ◽  
Multivariate Regression Analysis ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Self Selection ◽  
The Board Of Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

The world economy

1998 ◽  
Vol 165 ◽  
pp. 35-42
Author(s):  
Nigel Pain
Keyword(s):  
Capital Market ◽  
World Trade ◽  
Global Economy ◽  
World Economy ◽  
Domestic Demand ◽  
The World ◽  
Asian Economies ◽  
Trade Growth ◽  
The Impact ◽  
The Capital Market

Developments in the Asian economies have clearly begun to be felt in the wider global economy in recent months. It has always been expected that the OECD economies would be affected by the aftermath of the capital market turmoil last year, although the timing and magnitude of the impact was difficult to predict. Domestic demand in the affected Asian economies has proved much weaker than expected, with the effects magnified by a continued downturn in Japan. GDP fell by 5¾ per cent in Korea in the first quarter of this year and by 1¼ per cent in Japan. The aggregate volume of merchandise imports in Asia is expected to decline by around 5½ per cent this year, with falls of up to 25 per cent in countries such as Korea, Thailand and Indonesia. This largely accounts for our projected decline in world trade growth to under 6 per cent this year from an estimated 9¾ per cent in 1997.

The Influence of Related Party Transaction, Profitability, Leverage and Company Size on Firm Value with Tax Avoidance as an Intervening Variable in Telecommunications and Media Companies Listed on Bursa Malaysia and IDX 2010-2018

2021 ◽  
Vol 8 (4) ◽  
pp. 131-142
Author(s):  
Zulaikha Rahimah ◽  
Erlina . ◽  
Yeni Absah
Keyword(s):  
Firm Value ◽  
Negative Impact ◽  
Positive Impact ◽  
Tax Avoidance ◽  
Company Size ◽  
Mean Values ◽  
Media Companies ◽  
Related Party Transaction ◽  
The Impact ◽  
A Company

The purpose of this research is to examine and analyze the impact of related party transaction, profitability, Leverage and size of a company on firm value with tax avoidance as an intervening variable. The telecommunication and media sector in Bursa Efek Indonesia and Bursa Malaysia is chosen as the research object. The population is all the telecommunication and media companies listed in Indonesia stock exchange (IDX) and Bursa Malaysia within 2010-2018. It consists of 6 Telecommunication Company and 19 Media Company on IDX within 2010-2018. There exist a total of 33 companies in both the telecommunication and media sector in Bursa Malaysia. The sample's determination in this study is based on the nonprobability sampling method with the purposive sampling technique, in which the sample is selected with certain considerations or specific criteria. So that the sample of Malaysia is 248 and Indonesia is 139 data. Malaysia's telecommunications sector has 18 companies, and Indonesia has five companies. Meanwhile on media sector Indonesia consist of 15 company and Malaysia 12 company. This research adopts secondary data and multiple regression analysis for the regression to substructure I and II. The hypothesis mediation analysis is used to prove the mediation influence. Malaysia and Indonesia's results on Firm value: (1) Related party transaction has a positive but not significant impact. In contrast, Indonesia has a significant positive impact (2) Profitability has a significant negative impact both in Indonesia and Malaysia (3) Leverage has positive. However, not significant impact in Malaysia and Indonesia (4) Size of the company has a negative and significant impact for both country (5) Tax Avoidance has a negative but not significant impact. In contrast, Indonesia has a positive and significant impact on firm value. Related to the impact of variable independent toward tax avoidance, based on Malaysia's result, just the size of a company has the impact but negative and significant. Meanwhile, in Indonesia, Related party transaction and Leverage were known to have a negative and significant impact, and the size of the company has positive and significant toward tax avoidance. Based on Malaysia's result, tax avoidance does not impact all the independent variables on firm value. Based on Indonesia's result, the impact of company size on firm value is mediated by tax avoidance (Z). Based on the independent t-test, the variables that have different mean values are related to party transactions and company size. Keywords: Related Party Transaction, Profitability, Leverage, Size of company, Tax avoidance, Firm value.

scholarly journals Assessing impact of base erosion and profit shifting on performance of subsidiaries of multinational corporations in Baltic countries

Equilibrium ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 277-293
Author(s):  
Egidijus Kundelis ◽  
Renata Legenzova
Keyword(s):  
Multinational Corporations ◽  
Empirical Research ◽  
Tax Avoidance ◽  
Empirical Literature ◽  
Company Performance ◽  
Tax Rates ◽  
Profit Shifting ◽  
Baltic Countries ◽  
The Baltic ◽  
The Impact

Research background: The problem of base erosion and profit shifting by multi-national corporations has been debated from different perspectives because of its multiple impact on the key actors in the economy. Studies refer to its positive impact on companies via corporate taxes saved, but its negative impact on governments via reduced tax collection. A number of empirical studies conducted in different countries support the substantial BEPS impact on company performance, but report differences in its magnitude. Other authors claim that, despite a wide range of tax avoidance opportunities available, tax avoidance is limited due to institutional measures imposed (tax audits, penalties for non-compliance) and high implementation costs. A majority of the previous empirical research covered large countries (USA, Germany) or regions (e.g. Europe), but there is a gap in the re-search assessing the BEPS impact on multinational corporations’ subsidiaries’ performance in countries with lower corporate income tax rates such as the Baltic countries. Purpose of the article: To assess the impact of base erosion and profit shifting on multinational corporations’ subsidiaries’ performance in the Baltic countries. Methods: Empirical research is conducted based on the framework employed by Hines and Rice (1994) to measure BEPS impact on company performance. Regression analysis with fixed effects was applied to a sample of 3,422 Latvian, Lithuanian and Estonian subsidiaries of multinational corporations, which are characterized by low corporate tax rates.  The data for the period of 2007–2015 was retrieved from the Amadeus database. Findings & Value added: The research revealed that Baltic countries’ tax differentials between multinational corporations’ parent and subsidiary countries might have a significant impact on the subsidiary’s financial performance. When the tax rate differences between Baltic and the foreign countries decrease by 1%, reported profits in Baltic countries increase by 2.3%, indicating profit-shifting behaviour. This is in line with the empirical literature and practices applied by multinational corporations. It is also in favour of anti-tax avoidance measures introduced by the EC to be adopted by Baltic and other EU countries.

scholarly journals The impact of euro-integration processes on strengthening competitiveness of the banking sector

2021 ◽  
pp. 6-12
Author(s):  
I. Aloshyna
Keyword(s):  
Economic Integration ◽  
Capital Market ◽  
Banking Sector ◽  
Positive Impact ◽  
International Competitiveness ◽  
Banking Supervision ◽  
Euro Zone ◽  
Cross Border ◽  
Banking Institutions ◽  
The Impact

The study considers the essence and effects of economic integration on the Euro zone banking sector. The study explains that the intensification of economic integration of European countries provides a competitive environment for banks. The results found that the integration at the macro level increases the international competitiveness of the banking sector by creating a more transparent single secure market and increasing its capacity through the application of common rules and administrative standards for banking supervision and resolution, and on the meso- and micro levels increases the international competitiveness of banking institutions by increasing efficiency and profitability by increasing the volume of cross-border banking activities within the Euro zone. The conclusions suggest the main instruments of ECB’s monetary policy have a positive impact on improving the competitiveness of the banking sector by removing barriers to cross-border competition. Such instruments helped to create a large and transparent capital market, increase banking sector competitiveness by intensifying competition and efficiency of banks.

scholarly journals Утицај рачуноводствених информација на одабир акција на тржишту капитала у Босни и Херцеговини // The impact of accounting information on share selection in the capital market in Bosnia and Herzegovina

2012 ◽  
Vol 10 (16) ◽  
pp. 247
Author(s):  
Миро Џакула
Keyword(s):  
Bosnia And Herzegovina ◽  
Capital Market ◽  
Accounting Information ◽  
Realistic Assessment ◽  
The Impact ◽  
A Share ◽  
The Capital Market

Резиме: Кључно питање које занима све инвеститоре, и велике и мале, јест како реално процијенити вриједности акција неког предузећа, те на темељу којих параметара одлучити треба ли продати или купити одређене акције. Међутим, нема поузданог начина да се тачно одреди потенцијална вриједност неке акције. Но, без обзира на то, уз помоћ неколико метода инвеститори прије улагања новца у било које предузеће математички покушавају израчунати колико је нека акција подцијењена или прецијењена.Summary: The key issue being of interest to all investors, both big and small ones, is how to make a realistic assessment of the value of some company’s shares and which parameters should be taken into account when making a decision whether to sell or buy certain shares. However, there is no reliable way of determining accurately the value of a share. Nevertheless, prior to investing money in any company, the investors can try, by applying some methods, to mathematically calculate whether the share concerned is undervalued or overvalued.

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