Tax avoidance behaviour towards the cost of debt

The aim of the research is to analyze tax avoidance behavior to cost of debt moderated by tax rates changes, on manufacturing company in Indonesia in 2008-2010. Panel data analysis is used in this research. In this study usingbook tax gap to measure tax avoidance and using the models used by Lim (2010), Dwi Martani (2011) and Widya Sartika (2012) to meansure cost of debt. The study find that tax avoidance has negative influence on cost of debt. Tax avoidance creates a risk thereby increasing the cost of debt. In the period before tax rate reduction the influence of tax avoidance on cost of debt smaller compare after period of tax reduction, this indicates the presence of earning management conducted by the company before tax rate reduction.

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PENGARUH PENGHINDARAN PAJAK TERHADAP BIAYA HUTANG DAN KEPEMILIKAN INSTITUSIONAL SEBAGAI PEMODERASI

Jurnal Bisnis dan Akuntansi ◽

10.34208/jba.v21i1.425 ◽

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.

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PENGARUH PENGHINDARAN PAJAK, KEPEMILIKAN INSTITUSIONAL, DAN PROFITABILITAS TERHADAP BIAYA HUTANG (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Periode 2011-2015)

EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis ◽

10.37676/ekombis.v7i1.701 ◽

2019 ◽

Vol 7 (1) ◽

pp. 58-69

Author(s):

Elvis Nopriyanti Sherly ◽

Desi Fitria

Keyword(s):

Stock Exchange ◽

Tax Avoidance ◽

Institutional Ownership ◽

Cost Of Debt ◽

Effective Tax Rate ◽

Return On Assets ◽

Tax Rate ◽

Negative Effect ◽

Internal Funds ◽

The Cost

The purpose of this study is to prove the effect of tax avoidance, institutional ownership, and profitability on cost of debt. The sample consisted of 71 manufactured firms in listed in Indonesian Stock Exchange from 2011-2015 by using a purposive sampling method. The results of the study showed that the tax avoidance had negative effect on cost of debt. The meaning is getting smaller Cash Effective Tax Rate the cost of debt incurred greater. The results of this study also showed that the institutional ownership doesn’t had effect on cost of debt. Furthermore, the result of Return on Assets (ROA) as proxy profitability had a negative effect on cost of debt. The meaning that the higher the profitability of the company then the company will have a high internal funds that can be used in making the use of debt financing is getting smaller which causes the cost of debt also becomes smaller.

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Tax avoidance, tax risk and the cost of debt in a bank-dominated economy

Managerial Auditing Journal ◽

10.1108/maj-12-2017-1734 ◽

2018 ◽

Vol 33 (8/9) ◽

pp. 683-699 ◽

Cited By ~ 1

Author(s):

Jost Hendrik Kovermann

Keyword(s):

Interest Rates ◽

Design Methodology ◽

Stock Exchange ◽

Tax Avoidance ◽

Research Literature ◽

Cost Of Debt ◽

Content Type ◽

Negative Effect ◽

The Cost ◽

The Relationship

Purpose The purpose of this paper is to investigate whether tax avoidance has a positive or negative effect on firms’ cost of debt. It further investigates whether the implications for the cost of debt are different for tax avoidance and tax risk. Design/methodology/approach Based on a sample of 201 firms listed on Frankfurt Stock Exchange from 2009 to 2014, three tests are performed using pooled OLS regression. Controlling for numerous variables that have been found to influence the cost of debt, a first model examines the relationship between tax avoidance and the cost of debt. A second model examines the relationship between tax risk and the cost of debt and a third model interacts tax avoidance with tax risk. Findings The results show that tax avoidance has a negative effect on the cost of debt; however, tax risk increases the cost of debt. These results indicate that creditors generally view tax avoidance as positive and that tax avoidance is not regarded as inherently risky. Although tax avoidance is rewarded by capital markets with lower interest rates, tax risk contributes to higher interest rates. The effect of tax avoidance on the cost of debt depends therefore on the level of tax risk. Originality/value This paper contributes to two distinct strands of research: literature investigating the driving factors behind the cost of debt and literature investigating the consequences of firms’ tax avoidance activities.

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The Inﬂuence of The Firm Size and The Cost Of Debt Against Tax Avoidance with Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) as The Moderate Variable

KnE Social Sciences ◽

10.18502/kss.v3i26.5388 ◽

2019 ◽

Author(s):

Rinaldo . ◽

Siti Hartinah

Keyword(s):

Firm Size ◽

Sample Selection ◽

Tax Avoidance ◽

Sampling Technique ◽

Cost Of Debt ◽

Coefficient Of Determination ◽

Linear Interaction ◽

Statistical Program ◽

Corporate Social ◽

The Cost

This research aims to know the inﬂuence of the ﬁrm size and the cost of debt against taxevasionwithCorporateSocialResponsibility(CSR)andGoodCorporateGovernance (GCG)asvariablesinModerationCompanySectorMininglistedontheIndonesiastock exchange(BEI)in2012-2016.Thefactorsthatweretestedinthisstudyi.e.theﬁrmsize, the cost of debt and CSR as well as GCG as Variable moderation. This research sample selection method is using a purposive sampling technique with a total of 6 companies in the mining sector of the BEI meets the criteria. The data obtained are then processed using the software SPSS (Statistical Program of Social Science) version of 22.0. To know the magnitude of the inﬂuence of the ﬁrm size, the cost of debt and CSR as well as GCG As Variable regression model analysis of moderation is used multiple linear, interaction test (MRA), an analysis of the correlation and coefﬁcient of determination. TheresultsshowedthattheﬁrmsizeandthecostofthedebteffectsigniﬁcantlytoTax Avoidance. And moderation research results showed that CSR is able to moderate the inﬂuence of ﬁrm size and the cost of Debt against Tax Avoidance in a signiﬁcant way, however, is a Moderation Pure (Pure Moderators). While the GCG Managerial Ownership by proxy are able to moderate the inﬂuence of ﬁrm size with Tax Avoidance but a Moderation Quasi (Quasi Moderators) and the GCG wasabletomoderatetheinﬂuenceofdebtCostswithTaxAvoidancebutaModeration Pure (Pure Moderators).

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Pengaruh Dar, Ukuran Perusahaan, Dan Tax Avoidance Terhadap Cost Of Debt

Jurnal Manajerial Dan Kewirausahaan ◽

10.24912/jmk.v2i2.7940 ◽

2020 ◽

Vol 2 (2) ◽

pp. 469

Author(s):

Sherly Lie Wardani ◽

Herman Ruslim

Keyword(s):

Stock Exchange ◽

Tax Avoidance ◽

Cost Of Debt ◽

Purposive Sampling ◽

Listed Firms ◽

Beverage Industry ◽

Food And Beverage Industry ◽

Food And Beverage ◽

Student Version ◽

The Cost

The purpose of this study is to find out the effect of debt to asset ratio, firm size, and tax avoidance on the cost of debt of the listed firms of the food and beverage industry in Indonesia Stock Exchange period 2015-2018. This study uses pooled OLS regression, using 10 companies over 4 years that have been selected by purposive sampling and resulting 40 samples data. This study uses Eviews 10 student version software. The results of this study show that debt to asset ratio and firms size have positive effect and significantly on cost of debt, however tax avoidance does not significantly influence on cost of debt. Tujuan dari penelitian ini adalah untuk mengetahui pengaruh debt to asset ratio, ukuran perusahaan, dan penghindaran pajak terhadap biaya utang pada perusahaan industri makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2015-2018. Penelitian ini menggunakan regresi data panel OLS, menggunakan 10 perusahaan selama 4 tahun yang telah diseleksi menggunakan purposive sampling dan menghasilkan 40 sampel data. Pengujian yang dilakukan pada penelitian ini dengan software Eviews 10 student version. Hasil dari penelitian ini adalah debt to asset ratio dan ukuran perusahaan berpengaruh positif dan signifikan terhadap biaya utang, namun penghindaran pajak tidak berpengaruh secara signifikan terhadap biaya utang.

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PENGARUH TAX AVOIDANCE, EARNINGS MANAGEMENT, DAN KEPEMILIKAN MANAJERIAL TERHADAP COST OF DEBT

Jurnal Wahana Akuntansi ◽

10.21009/wahana.15.023 ◽

2020 ◽

Vol 15 (2) ◽

pp. 153-162

Author(s):

Dan Suminar ◽

Luh Nadi

Keyword(s):

Sampling Method ◽

Stock Exchange ◽

Manufacturing Sector ◽

Linear Regression Analysis ◽

Tax Avoidance ◽

Multiple Linear Regression Analysis ◽

Cost Of Debt ◽

Managerial Ownership ◽

Accounts Payable ◽

The Cost

This study aims to see and obtain empirical evidence regarding the effects of Tax Avoidance, Revenue Management and Managerial Ownership Against Debt Costs. This research was conducted at the manufacturing sector company consumer goods listed on the Indonesia Stock Exchange in 2014-2018. Population in this study were 51 companies listed on the Stock Exchange Indonesia se;ected using purposive sampling method, namely technique taking data sources with certain considerations. Data analysis method this research uses multiple linear regression analysis. Based on the research results show that Tax Avoidance has no effect on the Cost of Debt, Earning Management affects the Cost of Debt, and Managerial Ownership has no effect on the cost of accounts payable.

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ANALISIS PENGARUH TAX AVOIDANCE TERHADAP COST OF DEBT PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI SELAMA PERIODE 2010–2014

MODUS ◽

10.24002/modus.v28i2.847 ◽

2016 ◽

Vol 28 (2) ◽

pp. 137

Author(s):

Janice Ekasanti Santosa ◽

Heni Kurniawan

Keyword(s):

Stock Exchange ◽

Tax Avoidance ◽

Financial Statements ◽

Cost Of Debt ◽

Efficient Management ◽

Tax Savings ◽

The Cost ◽

Positive Effect ◽

Observation Period ◽

Tax Expense

Cost of debt borne by the company set by creditors based on how managementmanages the company. Effective and efficient management related to the way themanagement to increase revenue and suppress the load to obtain the maximum profit. Oneof the expense to be managed is the tax expense. Tax savings that they comply with the provisions of taxation known as tax avoidance. This study aims to reexamine the influenceof tax avoidance on the cost of debt on companies listed in the Indonesia Stock Exchange(BEI) in the period 2010-2014.This study uses financial statements of companies listed on the Stock Exchangeduring the period 2010-2014. Samples were selected using purposive sampling methodand obtained a sample of 49 companies with five years observation period, and the totalobserved data is of 245 data. Hypothesis testing is done by a simple linear regression.Based on the analysis, the result that tax avoidance positive effect on the cost of debton companies listed in the Indonesia Stock Exchange (BEI) in the period 2010-2014.Creditors consider tax avoidance as practices that involve risks thereby increasing the costof debt.Keywords: tax expense, cost of debt, tax avoidance, creditors, tax savings, manufacturingcompanies listed on the Stock Exchange.

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GOOD CORPORATE GOVERNANCE AND TAX AVOIDANCE TO COST OF DEBT WITH GROWTH OPPORTUNITYAS MODERATING (Empirical Study on Manufacturing Company and Finance Service Listed in IDX 2015-2019)

The Accounting Journal of Binaniaga ◽

10.33062/ajb.v5i2.406 ◽

2020 ◽

Vol 5 (2) ◽

pp. 123

Author(s):

Sugiyanto Sugiyanto ◽

Fitri Dwi Febrianti ◽

Suripto Suripto

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Tax Avoidance ◽

Cost Of Debt ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Good Corporate Governance ◽

The Cost ◽

The Relationship

Principles of good corporate governance can strengthen the relationship between the effect of Tax Avoidance, the Board of Commissioners and Managerial Ownership of the Cost of Debt on manufacturing companies listed on the Indonesia Stock Exchange (IDX). The hypothesis in the study uses the Eviews tool, tested 3 models 1) approach before using partial moderating (2) approach before using simultaneous moderating (3) The moderating growth opportunity.Samples consist of purposive sampling model with multiple linear regression analysis methods. The data used is the company's financial statements for 2015-2019. Research was taken from 28 selected manufacturing companies listed on the Indonesia Stock Exchange (IDX) and found samples 140 financialstatements.The results of observation were obtained partially by Tax Avoidance has a significant effect on the Cost of Debt, the Board of Commissioners has not a significant effect on the Cost of Debt, and Managerial Ownership has a significant effect on Cost of Debt. While simultaneously Tax Avoidance, Board of Commissioners, and Managerial Ownership influence the Cost of Debt. The moderating of growth opportunity strengthens the relationship between Good Corporate Governance and positive coefficient on the cost of debt, strengthened by the Leverage and Size control variables

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Tax Avoidance Sebagai Latar Belakang Dalam Memanfaatkan Tax Deductible Expense (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI)

InFestasi ◽

10.21107/infestasi.v14i2.4860 ◽

2019 ◽

Vol 14 (2) ◽

pp. 154

Author(s):

Fitri Oktariani ◽

Putu Indrajaya Lembut

Keyword(s):

Stock Exchange ◽

Tax Avoidance ◽

Cost Of Debt ◽

Linear Regression Method ◽

Tax Rate ◽

Research Population ◽

The Government ◽

The Cost ◽

A Company ◽

Positive Effect

This study aims to test and prove empirically the effect of tax avoidance on the cost of debt. The research population is a company listed on the Indonesia Stock Exchange with a sample of companies in the manufacturing category during 2012 to 2017, which is as many as 50 sample companies. Sampling uses purposive sampling and the data analysis method used is a simple linear regression method. The results of this study prove that tax avoidance has a positive effect on the cost of debt. Based on the results of testing this study, it can be concluded that the company will always use a tax deductible expense in its efforts to conduct tax avoidance regardless of the tax rate that has been imposed by the government.Thus, the government should consider further policies by focusing more on regulating the recognition of tax deductible expenses, rather than issuing a policy of reducing back rates, especially for corporate taxpayers.

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