The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia

This study examines the implication of optimizing earning management from tax incentives granted by the government to the hotel sector in Malaysia. Visit Malaysia Year, 1990 saw Pioneer Status and Investment Tax Allowance being introduced to the Hotel Sector, which qualifies as a promoted product...

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Bibliographic Details
Main Author:	Pritam Singh, Gurcharan Singh
Format:	Thesis
Language:	English English
Published:	2000
Subjects:	Tax incentives - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/8260/1/FEP_2000_8_IR.pdf
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id	my-upm-ir.8260
record_format	uketd_dc
spelling	my-upm-ir.82602023-12-20T03:25:31Z The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia 2000-05 Pritam Singh, Gurcharan Singh This study examines the implication of optimizing earning management from tax incentives granted by the government to the hotel sector in Malaysia. Visit Malaysia Year, 1990 saw Pioneer Status and Investment Tax Allowance being introduced to the Hotel Sector, which qualifies as a promoted product or promoted activity in promoting tourism in the country. These changes in earnings are investigated by decomposing earnings and by isolating the tax change component resulting from the actual and expected tax expenses. Earnings and the tax component are regressed with security returns. In line with this, using event methodology, the immediate effect of the announcement is observed for any abnormal gains.Results show that there is significant correlation between the effective tax change and the security returns. In addition there is a short term monetary effect due to the announcement. However the market anticipates the information well before the official announcement with positive abnormal returns prior and on the announcement day. Tax incentives - Malaysia 2000-05 Thesis http://psasir.upm.edu.my/id/eprint/8260/ http://psasir.upm.edu.my/id/eprint/8260/1/FEP_2000_8_IR.pdf text en public masters Universiti Putra Malaysia Tax incentives - Malaysia Faculty of Economics and Management Ahmad Shuib English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
advisor	Ahmad Shuib
topic	Tax incentives - Malaysia
spellingShingle	Tax incentives - Malaysia Pritam Singh, Gurcharan Singh The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia
description	This study examines the implication of optimizing earning management from tax incentives granted by the government to the hotel sector in Malaysia. Visit Malaysia Year, 1990 saw Pioneer Status and Investment Tax Allowance being introduced to the Hotel Sector, which qualifies as a promoted product or promoted activity in promoting tourism in the country. These changes in earnings are investigated by decomposing earnings and by isolating the tax change component resulting from the actual and expected tax expenses. Earnings and the tax component are regressed with security returns. In line with this, using event methodology, the immediate effect of the announcement is observed for any abnormal gains.Results show that there is significant correlation between the effective tax change and the security returns. In addition there is a short term monetary effect due to the announcement. However the market anticipates the information well before the official announcement with positive abnormal returns prior and on the announcement day.
format	Thesis
qualification_level	Master's degree
author	Pritam Singh, Gurcharan Singh
author_facet	Pritam Singh, Gurcharan Singh
author_sort	Pritam Singh, Gurcharan Singh
title	The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia
title_short	The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia
title_full	The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia
title_fullStr	The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia
title_full_unstemmed	The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia
title_sort	earning management valuation: effects of tax incentives on hotel sector in malaysia
granting_institution	Universiti Putra Malaysia
granting_department	Faculty of Economics and Management
publishDate	2000
url	http://psasir.upm.edu.my/id/eprint/8260/1/FEP_2000_8_IR.pdf
_version_	1794018732483280896

The Earning Management Valuation: Effects of Tax Incentives on Hotel Sector in Malaysia

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