/jurnalpengurusan Mon, 10 Oct 2022 00:44:11 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/components-of-tax-planning-and-characteristics-of-top-management-team/?utm_source=rss&utm_medium=rss&utm_campaign=components-of-tax-planning-and-characteristics-of-top-management-team Sun, 09 Oct 2022 18:15:48 +0000 /jurnalpengurusan/?post_type=article&p=4696 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.

]]> /jurnalpengurusan/article/do-uk-outside-ceos-engage-more-in-tax-planning-than-the-insiders/?utm_source=rss&utm_medium=rss&utm_campaign=do-uk-outside-ceos-engage-more-in-tax-planning-than-the-insiders Sat, 08 Oct 2022 19:33:31 +0000 /jurnalpengurusan/?post_type=article&p=3588 Firms engage in tax planning to varying extents. One potential determinant of such variations may be the characteristics of senior executives. The objective of this study is to investigate whether CEO origin (insiders or outsiders) and departing CEO tenure are significant in explaining the extent of corporate tax planning. The sample is non-financial London Stock Exchange listed firms from 2005 to 2011. Upon regressing tax planning on CEO origin, departing CEO tenure and other control variables, we find robust evidence that outsiders are associated with higher levels of tax planning than the insiders. Our results also reveal a negative moderating influence of departing CEO tenure on tax planning levels of current CEOs. Collectively, this paper provides the first UK evidence on the influence of CEO origin and departing CEO tenure on tax planning. This paper has important implications for tax authorities since it highlights CEO characteristics can be relevant indicators in a tax avoidance-risk assessment exercise. The findings will also be of interest to management and its board when considering factors of interest in a turnover scenario.

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