CORPORATE TAX AGGRESSIVENESS AND CORPORATE GOVERNANCE: CASE OF CITIZEN FIRMS

This study aims to examine the effect of corporate governance (CG), corporate social responsibility (CSR), and majority ownership on corporate tax aggressiveness. The method used is descriptive with a quantitative approach. The data used in this research is secondary data obtained from www.idx.co.id and IICG. Data were analyzed using multiple regression with SPSS 22.0 software. The research sample was taken using purposive sampling method. The sample of this study used 9 companies that were included in the CGPI ranking during the years 2012-2015. The results showed that corporate governance and majority ownership had no effect on tax aggressiveness. Meanwhile, corporate social responsibility has a significant negative effect on tax aggressiveness. For further research, it is expected to use other variables that can influence tax aggressiveness and to use other proxies to measure the level of tax aggressiveness.

Download Full-text

PENGARUH PENGUNGKAPAN CSR TERHADAP PELAPORAN PAJAK AGRESIF, DAN PENGARUHNYA TERHADAP RETURN SAHAM

Jurnal ASET (Akuntansi Riset) ◽

10.17509/jaset.v9i1.5258 ◽

2017 ◽

Vol 9 (1) ◽

pp. 73

Author(s):

Idrianita Anis

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Stock Return ◽

Audit Committee ◽

Tax Rates ◽

Corporate Tax ◽

Effective Tax Rates ◽

Tax Aggressiveness ◽

Csr Disclosure ◽

Corporate Social

Abstract. This study examine the association between Corporate Sosial Responsibility (CSR), corporate tax-aggressiveness and stock return. It also examine moderating effect of the effectiveness of audit committee as corporate governance mechanism to the association of CSR disclosure to corporate tax-aggressiveness. Examination conducted on 173 firm-years that were selected by purposive sampling method from manufacturing firm listed at IDX from 2011-2013. By measuring the corporate tax- aggressiveness through 4 measures: Effective Tax Rates (ETR), Cash-ETR, Book-Tax Difference (BTD), Abnormal-BTD, the result showed that CSR disclosure weakly effected corporate tax agresiveness. Study found CSR disclosure negatively effected Cash-ETR, and there were no significant effect to other three measure ETR, BTD and AB_BTD. The result shown there were no significant effect of audit committee effectiveness to corporate tax aggressiveness. The result also showed that there were no significant effect of CSR disclosure and audit committee effectiveness to stock return, but corporate tax agresive information have significant influence to stock return. Keywords: corporate social responsibility; effective taxes rates; cash effective taxes rate; book-taxes difference; abnormal book-taxes difference and stock returnAbstrak. Studi ini menguji hubungan antara pengungkapan Corporate Social Responsibility (CSR) dan pelaporan pajak agresif dan return saham. Studi juga menguji pengaruh moderasi dari variabel efektifitas komite audit sebagai mekanisme corporate governance dalam hubungan pengungkapan CSR terhadap pelaporan pajak agresif. Pengujian dilakukan menggunakan sampel yang dipilih menggunakan metode purposive sampling, dari perusahaan manfaktur terdaftar di Bursa Efek Indonesia dari 2011-2013. Dengan menggunakan pengukuran pajak agresif 4 ukuran yaitu: Effective Tax Rates (ETR); Cash-ETR; Book-Tax Difference (BTD); Abnormal-BTD;hasil menunjukkan hasil pengungkapan CSR berpengaruhi pelaporan pajak agresif dengan pengaruh yang lemah. Secara spesifik pengungkapan CSR bepengaruh negative terhadap Cash-ETR dan tidak terdapat pengaruh signifikan terhadap ketiga pengukuran pajak agresif yang lainnya yaitu ETR, BTD dan AB_BTD. Hasil menunjukan tidak terdapat pengaruh signifikan antara pengungkapan CSR dan efektifitas komite audit terhadap return saham, namun informasi pelaporan pajak agresif memiliki pengaruh signifikan terhadap return saham.Kata Kunci: tanggung jawab sosial perusahaan, tarif pajak yang efektif; tarif pajak tunai yang efektif; perbedaan buku pajak; buku pajak abnormal.

Download Full-text

Political connections, corporate governance, and tax aggressiveness in Malaysia

Asian Review of Accounting ◽

10.1108/ara-05-2016-0053 ◽

2017 ◽

Vol 25 (3) ◽

pp. 424-451 ◽

Cited By ~ 12

Author(s):

Effiezal Aswadi Abdul Wahab ◽

Akmalia M. Ariff ◽

Marziana Madah Marzuki ◽

Zuraidah Mohd Sanusi

Keyword(s):

Corporate Governance ◽

Fixed Effects ◽

Least Square ◽

Political Connections ◽

Corporate Tax ◽

Content Type ◽

Tax Aggressiveness ◽

The Impact ◽

The Relationship

Purpose The purpose of this paper is to examine the relationship between political connections and corporate tax aggressiveness in Malaysia. In addition, this paper investigates the relationship between corporate governance variables and corporate tax aggressiveness. Next, the study investigates the mitigating role of corporate governance in the relationship between political connections and corporate tax aggressiveness. Design/methodology/approach The sample of this study is based on 2,538 firm-year observations during the 2000-2009 periods. This study employs a panel least square regression with both period and industry fixed effects. The study retrieved the corporate governance variables from the downloaded annual reports, whilst the remaining data were collected from Compustat Global. Findings This study finds that politically connected firms are more tax aggressive than non-connected firms. Furthermore, the study finds that large board size decreases the likelihood of tax aggressiveness and a non-linear relationship exists between institutional ownership and tax aggressiveness suggesting increase in monitoring as the ownership increases. However, the study finds no evidence to suggest that corporate governance mitigates the influence of political connections in promoting tax aggressiveness behavior. The findings suggest that the impact of political connections could outweigh the benefits of changes in corporate governance in Malaysia. Research limitations/implications The data are not recent, but it reflects a rather longitudinal research period. Originality/value This paper extends the literature of tax research in Malaysia which is in its’ infancy stage. Furthermore, it investigates the role of political connections in tax-planning research.

Download Full-text

The Determinants of Corporate Tax Aggressiveness in Indonesia

International Journal of Social and Local Economic Governance ◽

10.21776/ub.ijleg.2019.005.01.4 ◽

2019 ◽

Vol 5 (1) ◽

pp. 32-41

Author(s):

Bani Alkausar ◽

Imam Subekti ◽

Indah Mardiati

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Manufacturing Companies ◽

Corporate Tax ◽

Moderator Variable ◽

Tax Aggressiveness ◽

Analysis Technique ◽

Hierarchy Analysis ◽

Official Site ◽

Selection Of

This study aims to examine the effect of corporate governance on corporate tax aggressiveness in Indonesia during the year 2013-2015. This study adds related parties’ transactions as a moderator variable to answer the results of previous studies that are not consistent. The population in this study uses manufacturing companies that are listed on the Indonesia Stock Exchange. The selection of manufacturing companies as subjects is based on the tendency that manufacturing firms are more aggressive with taxes. Research data obtained from the annual report which is on the official site idx.co.id, then analyzed using the hierarchy analysis technique or hierarchy regression technique. The results show that corporate governance can reduce the tendency of corporate tax aggressiveness. In addition, related parties’ transactions are proven to lead to the implementation of corporate governance to prevent tax aggressiveness from becoming ineffective.

Download Full-text

Impact of corporate tax aggressiveness on firm value: evidence from India

Managerial Finance ◽

10.1108/mf-01-2021-0033 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Taruntej Singh Arora ◽

Suveera Gill

Keyword(s):

Corporate Governance ◽

Emerging Economies ◽

Firm Value ◽

Fixed Effects ◽

Negative Relationship ◽

Moderating Effect ◽

Corporate Tax ◽

Content Type ◽

Tax Aggressiveness ◽

The Impact

PurposeThere is mixed evidence in the extant literature on the firm value implications of corporate tax aggressiveness in the developed economies. There are, however, limited studies that discuss this relationship in the case of emerging economies. The present study aims to bridge this research gap by exploring the relationship between corporate tax aggressiveness and firm value in context of the Indian economy.Design/methodology/approachThe sample comprises 547 S&P BSE 500 (Standard and Poor's Bombay Stock Exchange 500) Index companies for Financial Year (FY) 2009–10 through FY 2018–19. A fixed-effects panel model has been used to discern the impact of corporate tax aggressiveness on firm value with and without the moderating effect of a proxy for corporate governance strength.FindingsThe results highlight a significant negative relationship between corporate tax aggressiveness and firm value in India, whilst the analysis on the moderating effect of corporate governance strength on this relationship revealed a mix of significant and insignificant results. These results were robust to an alternate specification of the corporate governance strength proxy, the system GMM estimation employed to deal with endogeneity and a change in the Corporate Social Responsibility (CSR) regulation brought into effect by the Companies Act, 2013.Originality/valueThe study reveals a firm value discount associated with corporate tax aggressiveness in India which is likely due to its ability to increase opportunities for wealth expropriation by managers. This can further be attributed to the ineffective corporate governance mechanisms that make agency problems more severe in the case of emerging economies like India.

Download Full-text

Tax Aggressiveness, China's Corporate Tax Reforms, and Market Impact

SSRN Electronic Journal ◽

10.2139/ssrn.2315944 ◽

2013 ◽

Author(s):

Guodong Yuan ◽

Ron P. McIver ◽

Michael Burrow

Keyword(s):

Market Impact ◽

Corporate Tax ◽

Tax Reforms ◽

Tax Aggressiveness

Download Full-text

Women on the board of directors and corporate tax aggressiveness in Australia

Accounting Research Journal ◽

10.1108/arj-09-2014-0079 ◽

2016 ◽

Vol 29 (3) ◽

pp. 313-331 ◽

Cited By ~ 11

Author(s):

Grant Richardson ◽

Grantley Taylor ◽

Roman Lanis

Keyword(s):

Board Of Directors ◽

Selection Bias ◽

Tax Avoidance ◽

Multivariate Regression Analysis ◽

Corporate Tax ◽

Content Type ◽

Tax Aggressiveness ◽

Self Selection ◽

The Board Of Directors ◽

The Impact

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

Download Full-text