Title: Are tax incentives beneficial to support corporate performance in digital TV industry?

Authors: Yunita Anwar; Maya Safira Dewi; Martin Surya Mulyadi

Addresses: Accounting and Finance Department, Bina Nusantara University, KH Syahdan 9, West Jakarta, Indonesia ' Accounting and Finance Department, Bina Nusantara University, KH Syahdan 9, West Jakarta, Indonesia ' Accounting and Finance Department, Bina Nusantara University, KH Syahdan 9, West Jakarta, Indonesia

Abstract: The importance of digital TV in most countries has been acknowledged by wide usage of digital TV throughout the world. In order to support the development of this industry, it is a common practice that government provide tax incentives. While major prior research in tax incentives focus on the impact of tax incentives on economic development, this research focuses on the impact on corporate performance. This research studies digital TV tax incentives in Canada, Indonesia, and the United States of America (USA). Using EGARCH econometric model on the largest digital TV corporations in these three countries, this research finds that tax incentives are beneficial to support corporate performance with some exception. Tax incentives are found to be less effective in smaller corporations.

Keywords: tax incentives; corporate performance; EGARCH; digital TV industry; Canada; Indonesia; USA.

DOI: 10.1504/IJBEX.2017.087759

International Journal of Business Excellence, 2017 Vol.13 No.4, pp.536 - 545

Received: 26 Jul 2016
Accepted: 09 Oct 2016
Published online: 01 Nov 2017 *

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