Ignorance-Concealing Use of Immoral Means by Outsider Managers, a Covert Corrupting Practice that Nurtures Immoral Executives

The purpose of this research is to investigate the relationship between tax optimization and firm value in context of Pakistan. This study incorporates specially the factors that can be closely interrelated to effective tax rates and can influence the firm value. Debt, earnings management and audit quality is given the main interest in this study. To determine the effect, the study includes the balanced panel data with 381 non-financial firms and 2280 total number of observations. The time period of the study conducted is six years i.e. from 2009 to 2014. Panel data regression analysis is done in the e-views software to test the data. The results how that tax optimization, accruals and audit quality increase the firm value. The findings of the research help policy makers, investigators to better apprehend the role of tax optimization in managing of firms and also increase in their performance and ultimately the increased value.