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Decoding Corporate Tax Avoidance: What University Students Can Learn from Malaysian Public Firms?

Author

Listed:
  • Ruhaya Binti Rusni

    (Kalis & Co, D4-3-9, Solaris Dutamas, No. 1, Jalan Dutamas 1, 50480 Kuala Lumpur, MALAYSIA)

  • Mohd Taufik Bin Mohd Suffian

    (Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA)

  • Masetah Ahmad Tarmizi

    (Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA)

  • Liyana Ab Rahman

    (Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA)

  • Siti Marlia Shamsudin

    (Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA)

  • Gilang Ramadhan

    (Faculty Of Technology, Policy And Management, Delft University Of Technology, Mekelweg5, 2628 CD Delft, NETHERLANDS)

Abstract

Taxation is critical to sustaining government revenue and funding public services, thus future business and accounting professionals must examine corporate tax behavior. This study investigates the causes of tax evasion among Malaysian publicly traded companies from 2018 to 2022, providing both academically and pedagogically useful findings. The study, which focuses on company size, profitability, leverage, capital intensity, and inventory intensity, uses the Effective Tax Rate (ETR) as a proxy for tax avoidance. The study finds strong negative correlations between tax avoidance and both firm size and capital intensity, although profitability is favorably connected with tax avoidance strategies. These findings not only help to deepen our understanding of corporate financial conduct but also give important learning opportunities for university students studying tax strategy, business ethics, and fiscal policy. The study has implications for incorporating real-world tax methods into accounting and business curricula, as well as promoting critical thinking and ethical awareness among higher education students.

Suggested Citation

  • Ruhaya Binti Rusni & Mohd Taufik Bin Mohd Suffian & Masetah Ahmad Tarmizi & Liyana Ab Rahman & Siti Marlia Shamsudin & Gilang Ramadhan, 2025. "Decoding Corporate Tax Avoidance: What University Students Can Learn from Malaysian Public Firms?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3s), pages 2784-2797, April.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:3s:p:2784-2797
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    References listed on IDEAS

    as
    1. Fazliza Mohd Kasim & Natrah Saad, 2019. "Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 6(2), pages 74-81.
    2. Fazliza Mohd Kasim & Natrah Saad, 2019. "Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 6(2), pages 74-81.
    3. Akanksha Jalan & R. Vaidyanathan, 2017. "Tax havens: conduits for corporate tax malfeasance," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 25(1), pages 86-104, February.
    4. Ricardo Samuel Manihuruk & Dianwicaksih Arieftiara & Munasiron Miftah, 2021. "Tax avoidance in the Indonesian manufacturing industry," Journal of Contemporary Accounting, Master in Accounting Program, Faculty of Business & Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia, vol. 3(1), pages 1-11.
    5. Van Cuong Dang & Xuan Hang Tran, 2021. "The impact of financial distress on tax avoidance: An empirical analysis of the Vietnamese listed companies," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1953678-195, January.
    6. repec:eme:ijlma0:ijlma-07-2017-0174 is not listed on IDEAS
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    8. Dianwicaksih Arieftiara & Sidharta Utama & Ratna Wardhani & Ning Rahayu, 2019. "Contingent fit between business strategies and environmental uncertainty," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 28(1), pages 139-167, September.
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