TAX AVOIDANCE, ROA AND ROE AS DETERMINANTS OF FIRM VALUE: A STUDY OF MALAYSIAN TELECOMMUNICATION FIRMS
DOI:
https://doi.org/10.35631/AIJBES.829074Keywords:
Firm Value, Return on Assets (ROA), Return on Equity (ROE), Tax AvoidanceAbstract
This study investigates the relationship between tax avoidance, return on assets (ROA), return on equity (ROE) and firm value among Malaysian telecommunication service providers. Using panel data from the top 10 publicly listed firms in the sector for the period 2013 to 2022, the analysis employs descriptive statistics, correlation tests, and multiple linear regression techniques. The findings reveal that tax avoidance exhibited a negative but statistically insignificant relationship with firm value, whereas ROE demonstrated a positive and statistically significant relationship with firm value. These results imply that Malaysian telecommunication firms may enhance firm value by strengthening equity-based returns. The study offers practical implications for policymakers in designing more effective tax frameworks and for corporate leaders and investors seeking data driven strategic and investment decisions. Furthermore, the findings contribute to the achievement of Sustainable Development Goal (SDG) 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure) by promoting sustainable corporate performance, responsible financial management and transparent governance practices within the telecommunications sector.
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