scholarly journals THE ROLE OF CORPORATE DIVERSIFICATION IN TAX AVOIDANCE IN COMPANIES LISTED IN THE TEHRAN STOCK EXCHANGE

2019 ◽  
Vol 7 (1) ◽  
pp. 291-299
Author(s):  
Mohammad Vahdani ◽  
Abdolhossein Talebi Najafabadi ◽  
Narjes Kamali Kermani ◽  
Zahra Farhadi
Keyword(s):  
Confidence Level ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Financial Information ◽  
Corporate Diversification ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
The Government ◽  
A Charge ◽  
The Impact

Purpose of the Study: Tax avoidance means the use of gaps in tax laws for non-payment or late payment of taxes for companies, which is affected by different factors. The present study investigates the impact of diversification on tax avoidance in companies. To this end, the financial information of 384 firms during the period of 2011- 2016 in the Tehran Stock Exchange was examined. Methodology: In this research, the required financial information was summarized, classified, and calculated in Excel software and the data were analyzed by using E-views software. The dependent variables were effective tax rate and book-tax difference, while the independent variable was corporate diversification, which shows how to divide the market between business sectors (units) in a company. Control variables include size, financial leverage, company’s loss-making, ROA, capital expenditures, R&D, market to book value, CEO ownership, and management of ownership. Conclusions/Results: The findings obtained from this study demonstrate that at a 95% confidence level, there is no significant relationship between diversification and effective tax rates in companies listed in the Tehran Stock Exchange. However, at a 90% confidence level, diversification reduces the effective tax rate. Furthermore, no reliable evidence was found regarding the effect of diversification on book-tax difference at a 95% confidence level. Novelty: Tax is a charge imposed by the government on all organizational profits. Various enterprises have complex operations due to their institutional structure, which makes it possible to increase tax avoidance in these companies. The production or sale of a variety of products (diversification) is bigger and has more complex organizational structures that increase the cost of management and non-management decisions, making it difficult for companies to coordinate their policies. Thematic classification: G10, M41

scholarly journals Pengaruh Proporsi Kepemilikan Saham Asing dan Proporsi Direktur dan Komisaris Asing terhadap Penghindaran Pajak di Perusahaan Manufaktur Sektor Industri Barang Konsumsi Sub Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia

2021 ◽  
Vol 5 (4) ◽  
pp. 348
Author(s):  
Gregorius Fx Erick Tofani Riberu
Keyword(s):  
Stock Exchange ◽  
Tax Avoidance ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Foreign Investors ◽  
Tax Rate ◽  
Food And Beverage ◽  
Board Directors ◽  
Foreign Directors ◽  
The Impact

The research aims to determine the impact of foreign investor’s interests on tax avoidance in Consumer Goods- Manufacturing Companies, in particular the food and beverage sector, listed in Indonesia Stock Exchange during the periods from 2011 to 2016. The interests of foreign investors are measured by two variable which are the percentage of ownership by foreign investors and the percentage of foreign directors and commisoners on the board directors. The methodology used in this research is sampling method, tested by multiple linear regression. Tax avoidance is measured by two approaches, i.e. Effective Tax Rate and Book Tax Different. This research concludes that the percentage of ownership by foreign investors and the percentage of foreign directors and commisoners on board directors show no significant effect to the corporate tax avoidance. Tujuan penulisan makalah ini adalah untuk mengetahui pengaruh proporsi kepemilikan saham asing dan proporsi direktur dan komisaris asing terhadap penghindaran pajak di perusahaan manufaktur sektor industri barang konsumsi sub sektor makanan dan minuman yang terdaftar di Bursa Efek Indonesia selama peiode tahun 2011 sampai dengan 2016. Teknik pengambilan sampel menggunakan metode purposive sampling, diuji dengan metode regresi linier berganda. Pengujian dilakukan dengan dua pendekatan yaitu Effective Tax Rate dan Book Tax Different. Berdasarkan hasil penelitian dapat disimpulkan bahwa dengan pendekatan ETR, proporsi kepemilikan saham asing tidak berpengaruh positif atas penghindaran pajak, namun proporsi direktur dan komisaris asing berpengaruh positif terhadap penghindaran pajak meskipun tidak signifikan. Sedangkan dengan pendekatan BTD proporsi kepemilikan saham asing bepengaruh positif terhadap penghindaran pajak meskipun tidak signifikan, dan proporsi direktur dan komisaris asing tidak berpengaruh positif terhadap penghindaran pajak. 

scholarly journals structure of company ownership and tax avoidance in Indonesia

2021 ◽  
Vol 8 (3) ◽  
Author(s):  
Wima Rakayana ◽  
Made Sudarma ◽  
Rosidi Rosidi
Keyword(s):  
Ownership Structure ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Government Ownership ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Company Policy ◽  
The Government ◽  
Positive Effect

This study aims to explain the effect of ownership structure (family, government, institutional, foreign, managerial, public) on tax avoidance in Indonesia. This study employed quantitative research with regression analysis, regression method using the annual report on companies listed on the Indonesian stock exchange from the 2017-2019 period with a sample of 93 companies. The tax avoidance was measured using the Cash Effective Tax Rate. The results of this study indicate that the government ownership structure and foreign ownership structure have a positive effect on tax avoidance in Indonesia. Firm size emphasizes the influence of the independent variables on the dependent variable. Family, institutional, managerial, public ownership structures have no influence on tax avoidance. This study indicates that the ownership structure of the company can influence company policy in tax avoidance.

scholarly journals Do Overlapped Audit Committee Directors Affect Tax Avoidance?

2021 ◽  
Vol 14 (10) ◽  
pp. 487
Author(s):  
Hidaya Al Lawati ◽  
Khaled Hussainey
Keyword(s):  
Financial Institutions ◽  
Audit Committee ◽  
Stock Exchange ◽  
Research Question ◽  
Tax Avoidance ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
The Impact ◽  
A Company ◽  
Advisory Role

This research is motivated by the Omani government’s desire to reduce tax avoidance and bolster tax revenue collected from financial institutions. The purpose of this paper is to examine the impact of overlapped audit committee (AC) chairs and other directors on tax avoidance practice and whether they play a monitoring or advisory role in tax avoidance practice. As a measure of overlapped AC chairs, we used a dummy variable to indicate whether an AC chair sits on other committees within a company or not. We used the proportion of AC members who serve on the AC and other committees within a company as our proxy for overlapped AC directors. We used a company’s cash effective tax rate as a proxy for tax avoidance. We regressed tax avoidance on overlapped AC membership and other control variables, using a sample of 204 firm-year observations from financial institutions listed on the Muscat Stock Exchange between 2014 and 2019. Our regression results show that a higher proportion of overlapped AC members and the presence of an overlapped AC chair were both associated with lower effective tax rates, which equated to more tax avoidance. This suggests that these directors play an advisory role in the Omani context. We found, however, that these directors play a monitoring role when firms take a loss. From these findings, we draw important implications for regulators who need to rethink the potential consequences of having overlapped AC chairs and AC directors. Our study focuses on Omani financial institutions, which are highly regulated and monitored by the central bank, and our findings may not be directly applicable to non-financial institutions that are less regulated, so caution is needed when interpreting the findings. Further research could employ a repeated measured research design, such as ours, and explore the same research question in non-financial institutions.

scholarly journals Board Meeting Attendance and Corporate Tax Avoidance: Evidence from the UK

2019 ◽  
Vol 8 (1) ◽  
pp. 51-66 ◽  
Author(s):  
Victor Barros ◽  
Joaquim Miranda Sarmento
Keyword(s):  
Stock Exchange ◽  
Tax Avoidance ◽  
Board Members ◽  
Opportunistic Behavior ◽  
Attendance Rate ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
The Uk ◽  
The Impact

Is corporate tax avoidance associated with board meetings and attendance? Despite the large amount of research in management and finance on the impact of boards in several firm decisions, there is very little research that associates boards with tax avoidance. In this article, we look at firms listed on the London Stock Exchange during the period 2002–2015 and analyze whether a higher frequency of board meetings in the UK is associated with lower corporate tax liability. Our findings show that board meetings and attendance rate exert opposite effects, although the frequency of meetings is associated with lowering the tax liability. However, the association does not hold in a linear way. Tax-avoiding firms pay about 3 percent less effective tax rate, which is associated with average levels of meetings frequency, whereas those in the upper tail of the effective tax rate distribution benefit from a combined decrease of about 5–6 percent in the effective tax rate. The results conclusively support the view that a more resilient and focused control of board members mitigates opportunistic behavior and rent-seeking, thus enabling managers to engage in tax avoidance strategies.

scholarly journals Tax Avoidance on the Banking Industry in the Era of Financial Technology Development

2019 ◽  
Vol 8 (4) ◽  
pp. 4516-4521
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Technology Development ◽  
Stock Exchange ◽  
Sample Selection ◽  
Tax Avoidance ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
The Government ◽  
Financial Technology

Current technological developments touch the financial sector, now known as Financial Technology (Fintech). Fintech makes financial services faster and cheaper. With the development of Fintech, the banking world is also developing. Fintech and banking collaborate to get the maximum profit. Under these conditions, this study aims to analyze the factors that influence tax avoidance on banking companies listed on the Indonesia Stock Exchange. The population to observe were 43 banking companies listed on the Indonesia Stock Exchange in the 2015-2017 period. The sample selection uses the purposive sampling method, and 21 banking companies are selected according to the criteria and processed using SPSS version 25. The dependent variable used is the effective cash tax rate (CETR). Besides, the independent variables are profitability (Return on Assets), liquidity (Loan to Deposit Ratio), leverage (Debt to Total Assets), corporate governance (corporate governance based on Surat Edaran Bank Indonesia 15/15 / DPNP), and company size. The results showed that company liquidity and size significantly affected the cash effective tax rate, while profitability, leverage, and corporate governance did not affect the cash effective tax rate. This research can be used by companies to pay attention to aspects of reporting and implementation of good corporate governance, and banking companies are expected to be able to extend credit following applicable regulations. Then for tax consultants are expected to be able to use laws and regulations wisely and not be used as a loophole to make deviations in the interests of clients. Furthermore, the Government is expected to be able to increase the supervision of tax legislation so that it is not misused or used by certain interested parties and closely supervises credit disbursements made by banking companies to comply with applicable regulations

scholarly journals PENGARUH KONSERVATISME AKUNTANSI DAN PENGHINDARAN PAJAK TERHADAP NILAI PERUSAHAAN

2019 ◽  
Vol 2 (2) ◽  
pp. 134
Author(s):  
Puradinda Zulfiara ◽  
Juli Ismanto
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Accounting Conservatism ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Positive Effect

Aim of this research is to determine the effect of accounting conservatism and tax avoidance on firm value. The type of data used in this study is secondary data in the form of annual reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2016 period. The number of samples is 48 manufacturing companies. The data analysis technique used is regression analysis. The results of the study show that conservatism has a positive effect on firm value, tax avoidance has a negative effect on firm value. While simultaneously conservatism and tax avoidance have a positive effect on firm value. Thus this study supports that accounting conservatism has a role as a function of monitoring the company's investment policies and one way to maintain the value of the company in limiting losses that may arise from poorly performing investment decisions. The company that conducts tax avoidance (has a smaller effective tax rate) is an effort made by management to reduce the company's tax burden and is able to minimize expenditure for tax purposes so that management looks good in the eyes of shareholders.

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 Impact of Microeconomic and Macroeconomic Factors on Financial Structure: Evidence from United States

2021 ◽  
pp. 1-10
Author(s):  
Diana Alexandra TOADER ◽  
Georgeta VINTILĂ ◽  
Ștefan Cristian GHERGHINA
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Financial Structure ◽  
Effective Tax Rate ◽  
Financial Return ◽  
Macroeconomic Factors ◽  
Tax Rate ◽  
Growth Opportunity ◽  
Macroeconomic Indicators ◽  
The Impact

This paper explores the microeconomic and macroeconomic drivers of financial structure, through a sample of 30 technology companies listed on the New York Stock Exchange, over the period 2005-2018. The financial structure was assessed via long-term debt rate, short-term debt rate and total debt rate, whereas the size of the company, tangibility of assets, growth opportunity, effective tax rate and financial return were selected as microeconomic factors, alongside macroeconomic indicators concerning interest rate, inflation rate and gross domestic product per capita.

scholarly journals PENGARUH KOMISARIS INDEPENDEN, KOMITE AUDIT, CAPITAL INTENSITY DAN CORPORATE RISKTERHADAP TAX AVOIDANCE (Studi pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi yang Terdaftar di Bursa Efek Indonesia Periode 2013-2016)

2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Basuki Basuki
Keyword(s):  
Tax Evasion ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
Capital Intensity ◽  
Manufacturing Companies ◽  
Data Types ◽  
Effective Tax Rate ◽  
Tax Rate

Things that need to be done in order to prove independentcommissioners, audit committee, capital intensity and corporate risk ontax avoidance in companies engaged in Indonesia Stock Exchange(IDX). In this study, tax avoidance uses the Cash Effective Tax Rate(CETR) proxy. The research period is 4 years, ie during 2013-2016. Thestudy population covers all manufacturing companies of the industrialsector of goods in the period 2013-2016ALAH 148 companies. Thesampling technique used purposive sampling technique. Based on thecriteria set in the sample of 84 corporate data. Types of data which aresecondary data obtained from the Indonesia Stock Exchange website.The process of data analysis that is panel analysis of regression data.The results showed that independent commissioners and capital intensitydid not have a significant effect, while audit committee and corporaterisk had a significant effect on tax evasion.

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

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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