scholarly journals Tax Aggressiveness, Market and Idiosyncratic Risks in Brazil

2020 ◽  
Vol 21 ◽  
pp. 1-14
Author(s):  
Antonio Lopo Martinez ◽  
Welliton Botão Martins
Keyword(s):  
Significant Relationship ◽  
Idiosyncratic Risk ◽  
Financial Risks ◽  
Business Managers ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
The Relationship

This study aims to analyze the relationship between tax aggressiveness and the risks associated with the variation of returns in Brazilian companies’ stock. Particularly, the research regards the systematic and idiosyncratic risks. The sample was formed by companies that composed the IBOVESPA index in the period between 2011 to 2016. The measurements of tax aggressiveness were the effective tax rate and the temporary book-tax differences. The results showed a significant relationship between tax aggressiveness and risk, concluding that the higher the tax aggressiveness, the lower the beta, and the higher the idiosyncratic risk. This study is essential because it maps the effect of tax aggressiveness on the financial risks related to Brazilian companies’ shares, as well as being useful to investors, portfolio, and business managers.

scholarly journals Foreign Capital Participation and Tax Aggressiveness in Brazilian Companies

2020 ◽  
Vol 15 ◽  
pp. 43-53
Author(s):  
Antonio Lopo Martinez ◽  
Clébio Bis
Keyword(s):  
Significant Relationship ◽  
Foreign Capital ◽  
Equity Capital ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Taxable Income ◽  
Tax Management ◽  
Tax Research ◽  
The Relationship

This study explores the relationship between tax aggressiveness and foreign capital participation in Brazilian companies listed on the BM & F BOVESPA from 2010 to 2015, using the concept of tax aggressiveness as a reduction of taxable income through tax management and planning (Chen et al., 2010). Observing that previous studies show a significant relationship between tax aggressiveness and ownership structures, this research seeks to understand whether this relationship is significant if there is foreign capital participation in the company. The sample was composed of Brazilian companies listed on the BM&F BOVESPA. Two metrics of tax aggressiveness were used to investigate this relationship: effective tax rate (ETR) and book-tax difference (BTD). The use of these metrics was inspired in a review on tax research by Hanlon and Heitzman (2010), who concluded that ETR and BTD could capture the reduction of taxable income through tax planning. The results showed no significant relationship between foreign capital participation and tax aggressiveness, demonstrating that the origin of equity capital is not a factor of tax aggressiveness.

scholarly journals Family Ownership, Corporate Governance, and Tax Aggressiveness

2021 ◽  
Vol 1 (1) ◽  
pp. 51
Author(s):  
Ida Subaida ◽  
Triska Dewi Pramitasari
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Family Ownership ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Dummy Variable ◽  
Research Implication ◽  
The Government ◽  
The Relationship

Companies generally prefer to pay small amounts of tax and use aggressive taxation strategies. This study aims to examine the effect of family ownership on tax aggressiveness moderated by corporate governance. Family ownership is measured by dummy variable 1 or 0, corporate governance with the proportion of the composition of independent commissioners, and tax aggressiveness using the Effective Tax Rate (ETR) on consumer goods companies listed on the Indonesian Stock Exchange in 2018. Data analysis using Moderated Regression Analysis (MRA). The results of this study indicate that family ownership does not affect tax aggressiveness, corporate governance has a positive effect on tax aggressiveness, and corporate governance strengthens the relationship between family ownership and tax aggressiveness. The research implication is that it can be an input in making decisions for the government regarding taxation, for companies related to decision making regarding corporate governance, as well as for investors for investment decisions.

scholarly journals IMPACT OF A PREVIOUS AUDIT ON TAX AGGRESSIVENESS OF A FIRM TAXPAYER

2019 ◽  
Vol 1 (3) ◽  
pp. 15
Author(s):  
Ivan Rona Penata
Keyword(s):  
Multinomial Logit ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Logit Regression ◽  
Multinomial Logit Regression ◽  
Audit Result ◽  
Tax Audit ◽  
Return Data

This study aims to analyze the effect of a previous tax audit on tax aggressiveness of a firm taxpayer who submits Overpayment Annual Tax Return. The degree of tax aggressiveness itself uses Delta Effective Tax Rate as a proxy, generated from Annual Tax Return data from 2011 to 2016. Using multinomial logit regression as a method, this study found that a previous Tax Audit and tax audit result made a firm prefer to choose a positive Delta Effective Tax Rate.

Derivative financial instruments, tax aggressiveness and firm market value

2014 ◽  
Vol 6 (4) ◽  
pp. 376-390 ◽  
Author(s):  
Tao Zeng
Keyword(s):  
Market Value ◽  
Analytical Models ◽  
Option Value ◽  
Financial Instruments ◽  
Effective Tax Rate ◽  
Public Companies ◽  
Content Type ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Using Data

Purpose – The purpose of this study is to examine the relationship of using derivative financial instruments, tax aggressiveness and firm market value. Design/methodology/approach – This paper develops analytical models and designs an empirical study. Findings – Using data from large Canadian public companies, this paper finds that a firm’s realized losses or unrealized gains from using derivatives are negatively associated with its effective tax rate, and a firm’s realized losses or unrealized gains from using derivatives are positively associated with its market value. Research limitations/implications – This study simplifies the analytical model by separating the firm’s intrinsic market value from the tax-timing option value. In a more general framework, the tax-timing option value could be subsumed in the firm’s market value, and the firm’s market value would be determined endogenously. Originality/value – This study develops a framework to show how firms exploit the tax-timing option by using derivatives. It is the first study to conclude that a motive for firms to use derivatives is to exploit the tax-timing option.

scholarly journals PENGARUH PENGHINDARAN PAJAK TERHADAP BIAYA HUTANG DAN KEPEMILIKAN INSTITUSIONAL SEBAGAI PEMODERASI

2019 ◽  
Vol 21 (1) ◽  
pp. 47-60
Author(s):  
FAHREZA UTAMA ◽  
DWI JAYA KIRANA ◽  
KORNEL SITANGGANG
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Cost Of Debt ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Section Data ◽  
The Cost ◽  
The Relationship

The aim of this study is to test the influence of tax avoidance towards the cost of debt moderated by institutional ownership. In this research, tax avoidance measured by proxy of Book Tax Different (BTD) and Cash Effective Tax Rate (CETR). The population in this research is manufacturing firms that listed on Indonesia Stock Exchange (IDX) with 2015-2017 time periods. The amount of sample before outlier is 198 datas collected with purposive sampling method, then the amount of sample after outlier is 187 datas for first model and 186 datas for second model. Cross section data is used in this research. Multiple linear regression, determination coefficients, and partial test (t-test) is used with some help of programming data using SPSS (Statistical Product and Service Solution) 23th version to analize in this research. The result of this study indicate tax avoidance has not significant influence towards the cost of debt, and institutional ownership can’t moderate the relationship between tax avoidance and the cost of debt.

scholarly journals The relationship between the effective tax rate and the nominal rate

2018 ◽  
Vol 63 (2) ◽  
pp. 33
Author(s):  
Paulo Jorge Varela Lopes Dias ◽  
Pedro Miguel Gomes Reis
Keyword(s):  
European Union ◽  
United Kingdom ◽  
Effective Rate ◽  
The European Union ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
The United Kingdom ◽  
Nominal Rate ◽  
The Relationship

<p class="Pa7">The main goal of this investigation is to understand the relationship between the nominal rate and the effective tax rate and to evaluate if the differences between them depend on the value of the nominal rate. Based on a sample of 1,530 companies from 5 countries members of the European Union (Denmark, Slovenia, Finland, Luxembourg and the United Kingdom) there’s evidence that the effective tax rate is positively related to the nominal rate. The effective tax rate was calculated through the ratio between the value of the tax paid over the result before tax. When the nominal tax rate increases, the effective rate increases equally but with a slower growth. This relationship is softened if we take into account the value of the nominal tax rate, which shows that companies have the ability to manage the results in order to increase savings in tax.</p>

PENGARUH KEPEMILIKAN KELUARGA TERHADAP AGRESIVITAS PAJAK DENGAN KUALITAS AUDIT SEBAGAI PEMODERASI

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Ronaldo Geovanda Christa ◽  
Priyo Hari Adi
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Family Ownership ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Analysis Technique ◽  
Sample Method ◽  
A Company ◽  
Purposive Sample

Tax are considered as expense incurred by the company, this causes the company tends to act aggressively towards taxes. The purpose of this study was to determinate how the influence of family ownership on tax aggressiveness with audit quality as a moderating factor in manufactruring companies listed on the Indonesia Stock Exchange in 2013-2016. The sample used in this study were 244, selceted using the purposive sample method. The data analysis technique used in this study is moderated regression analysis (MRA). The results showed that family ownership affects the tax aggressiveness. Audit quality cannot moderate the effect of family ownership on tax aggressiveness. This means that the higher family ownership of a company, the lower the effective tax rate. Families have a concern with the risks arising from tax aggresiveness.Kata Kunci : Family ownership, Tax Aggresiveness, Audit Quality.

AGRESIVITAS PAJAK BERDASARKAN UKURAN PERUSAHAAN, PENDANAAN ASET DAN KOMPOSISI ASET SERTA PROFITABILITAS (STUDI SEKTOR MANUFAKTUR DI NEGARA BERKEMBANG)

2020 ◽  
Vol 12 (2) ◽  
pp. 194-213
Author(s):  
Shahnas Regina Fajar ◽  
Patricia Diana
Keyword(s):  
Firm Size ◽  
Capital Intensity ◽  
Financial Statement ◽  
Total Asset ◽  
Analysis Method ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Public Company ◽  
Positive Effect

The purpose of this research is to investigate the association between firm size using Ln total asset, asset funding using Debt to Total Asset (DAR) and asset composition, and also  profitability using Return on Asset (ROA) on tax aggressiveness using Effective Tax Rate (ETR). Sample in this research were manufacturing public company which listed consecutively during period 2016-2018. The others criteria were publishing audited financial statement, using Rupiah as reporting currency, have same reporting period which ended at December 31, positively profit and also have assets value within 1 up to 4 trillion. Data analysis method used multiple regression. The result of this research found that only asset funding (DAR) has significant positive effect towards tax aggressiveness (ETR) while firm size, profitability (ROA) and asset composition (CAIR) has no effect on tax  aggressiveness (ETR.   Keywords: Capital Intensity, Firm Size, Leverage, Profitability, Tax Aggressiveness.

Tax Aggressiveness Seen From Company Characteristics and Corporate Social Responsibility

2017 ◽  
Vol 5 (2) ◽  
pp. 77
Author(s):  
Yunus Harjito ◽  
Christin Novita Sari ◽  
Yulianto
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Capital Intensity ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Comprehensive Picture ◽  
Independent Variable ◽  
Corporate Social ◽  
Research Period

<pre>This study aims to analyze the effect of company characteristics and Corporate Social Responsibility on tax aggressiveness. Dependent variable used in this research was tax aggressiveness as measured by effective tax rate. The independent variables in this study were company characteristics consisting firm size, leverage, and capital intensity. This study also used Corporate Social Responsibility as independent variable. The sample was 41 companies with the research period for 5 years (2011-2015) selected by using purposive sampling method. The data analysis in this study used multiple linear regression to obtain a comprehensive picture of the effect of corporate characteristics and Corporate Social Responsibility on Tax Aggressiveness using SPSS version 21 for Windows. The result shows that company size and capital intensity significantly affect the tax aggressiveness. However, two other variables (leverage and Corporate Social Responsibility) that allegedly affect tax aggressiveness are not proven to affect tax aggressiveness.</pre>

Tax Disclosures in Financial and CSR Reporting as a Deterrence for Evasion

2021 ◽  
pp. 397-427
Author(s):  
Fábio Albuquerque ◽  
Julija Cassiano Neves
Keyword(s):  
Financial Reporting ◽  
Income Tax ◽  
Academic Research ◽  
Future Research ◽  
Reporting Standards ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Financial Reporting Standards ◽  
Csr Reporting

This chapter is about the mandatory disclosure of income tax as required by international financial reporting standards (IFRS) and standards issued by Portuguese regulatory bodies. The chapter also elaborates the most relevant disclosures from the perspective of corporate social responsibility (CSR). Furthermore, it highlights the most influential CSR reporting standards to answer the question that whether these standards adequately address the issue of income tax payment as a factor of CSR. Finally, it also reviews the international and Portuguese theoretical and empirical academic research available about income taxes and related subjects, such as disclosures, corporate tax as a CSR matter, and tax aggressiveness of corporations. Future research may be conducted geographical reporting of income tax expense and its relationship with the effective tax rate (ETR) and other independent variables.

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