Abstract
In small open economies, the connection between exchange rate and monetary policy function is well-recognised either in the form of theoretical concept or empirical literature. Unlike others, this paper revisits the study by utilising the panel threshold approach of Hansen (1999) to investigate how the monetary policy function of ASEAN-5 responding to exchange rate changes in two different policy regimes, pre-crisis (1980Q1-1996Q4) and post-crisis (1999Q1-2015Q4). The results exhibit asymmetric effect of exchange rate changes on monetary policy function in both sub-periods. The double threshold effect in the pre-crisis, showing exchange rate changes influencing the policy function in a limited threshold value. Conversely, in the post-crisis, the single threshold effect illustrating exchange rate changes having stronger effect on the policy function in various magnitudes at all threshold values. Although claiming the execution of flexible exchange rate system aftermath crisis, there exist policymakers’ intervention in stabilising the exchange rate changes with respect to ‘fear of floating’ behaviour in ASEAN-5. Lastly, in each sub-period, the threshold effect of exchange rate changes relative to inflation variation is highly significant while trivial to output gap in triggering the policy function. This witnessing, by and large, the ultimate goal of ASEAN-5 is to achieve price stability.
Highlights
The annual report is a document that provides key information for stakeholders to understand a company’s performance and position
The respondents of this study are from various career backgrounds, which include professionals, Inland Revenue Board of Malaysia (IRBM) officers, academics, management executives and students, to represent the varied users of annual reports
This study highlights three components of users’ perceptions on tax disclosure in companies’ annual report, i.e., the importance of tax disclosure, current state of tax disclosure and usefulness of more tax disclosure provided in the annual report
Summary
The annual report is a document that provides key information for stakeholders to understand a company’s performance and position. The annual report of a company presents financial performance through its financial report and disclosures of financial and tax matters section. This study finds that users perceive the tax disclosure section as an important part in the annual report and more tax information must be disclosed. They believe that tax disclosure is beneficial in facilitating decision-making and assisting tax authorities to handle tax audits. Users perceive that tax disclosure is limited, too technical to be interpreted and agree that more tax disclosure would be useful for stakeholders to comprehend companies’ tax matters. The rest of this paper is organised into several sections: Section 2 presents the literature review, Section 3 explains the methodology of this study, Section 4 discusses the results and findings and Section 5 provides the conclusion of this study
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