scholarly journals Impact of Corporate Governance Attributes on Tax Planning of listed Manufacturing Companies: A Comparative Study between Nigeria and Malaysia

2019 ◽  
Vol 1 (2) ◽  
pp. 105-119
Author(s):  
Sule Ba’aba ◽  
Mahmud Bashiru
Keyword(s):  
Corporate Governance ◽  
Random Effect ◽  
Control Variable ◽  
Tax Planning ◽  
P Value ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Ex Post ◽  
Effect Estimation ◽  
The Impact

The serious decline in the price of crude oil in recent years has led the state government to look for new sources of revenue and becomes strict and aggressive to the assessment and collection of revenue from the existing sources. This study examines the impact of Corporate Governance Attributes on Tax planning of listed manufacturing companies in Nigeria and Malaysia. The corporate governance parameters include board size and CEO tenure while tax planning is proxied by the effective tax rate and firm size as control variable. The objective is to determine if there is a relationship between corporate governance attributes and tax planning which in turn may improve firm performance. The study adopts comparative and ex-post facto research design and will utilise panel data from annual reports and accounts of the listed companies for the period of five years (2014-2018). The Data were analysed using a panel regression technique to assess the effect of the independent variables on the dependent variable. Hausman specification test was conducted to choose between fixed and random effect estimation and the p-value is0.9863 which insignificant. The resultsfrom random effect estimation modelindicates a negative and significant relationship between CEOT, FSIZE and ETR and a positive relationship between BSIZE and ETR.Therefore, the study concludes that corporate governance mechanism plays a significant role in tax planning and Nigerian manufacturing companies pays high tax charges as compare to Malaysian food and beverages companies.

PERANAN GOOD CORPORATE GOVERNANCE TERHADAP KEPATUHAN PENGUNGKAPAN TRANSAKSI PIHAK BERELASI

2021 ◽  
Vol 7 (2) ◽  
pp. 157-174
Author(s):  
Grace Olivia ◽  
Dwi Jaya Kirana ◽  
Ekawati Jati Wibawaningsih
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Random Effect ◽  
Random Effect Model ◽  
Control Variable ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Related Party Transactions ◽  
Good Corporate Governance ◽  
Effect Model

ABSTRAKPenelitian ini bertujuan untuk mengetahui pengaruh dari good corporate governance terhadap kepatuhan pengungkapan transaksi pihak berelasi pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia pada periode 2017–2019. Sampel dipilih menggunakan metode purposive sampling dan diperoleh sebanyak 117 perusahaan manufaktur. Data yang digunakan adalah data sekunder berupa laporan tahunan perusahaan. Model penelitian menggunakan Random Effect Model. Hasil penelitian menunjukkan komite audit dari komisaris independen berpengaruh positif terhadap pengungkapan transaksi pihak berelasi, sedangkan variabel dependen lain tidak berpengaruh. Ukuran perusahaan sebagai variabel kontrol tidak berpengaruh terhadap pengungkapan transaksi pihak berelasi. Pengungkapan transaksi pihak berelasi berisi informasi seberapa besar posisi keuangan perusahaan dapat dipengaruhi oleh transaksi dan saldo dengan pihak berelasi sehingga dapat meminimalisir masalah agensi berupa asimetri informasi di antara pemegang saham. Pengungkapan transaksi pihak berelasi dapat menghasilkan keputusan investasi yang terbaik bagi pemegang saham.ABSTRACTThis study aims to determine the effect of good corporate governance on disclosure compliance of related party transactions in manufacturing companies listed on the Indonesia Stock Exchange in the 2017–2019 period. The sample was selected using purposive sampling method and obtained as many as 117 manufacturing companies. The data used is secondary data in the form of the company's annual report. The research model uses the Random Effect Model. The study conclude only the audit committee of independent commissioners has a positive influence on the disclosure of related party transactions, while the other dependent variables have no effect. Firm size, as a control variable, has no effect on disclosure of related party transactions. Disclosure of related party transactions contains information on how much the company's financial position can be affected by transactions and balances with related parties so as to minimize agency problems in the form of information asymmetry among shareholders. Disclosure of related party transactions can result in the best investment decisions for shareholders.

scholarly journals The Effect of Both Earnings Management and Tax Planning To The Value of The Company With Corporate Governance As Variable Moderating

2017 ◽  
Vol 2 (01) ◽  
pp. 1
Author(s):  
Nia Suryani ◽  
Djuminah Djuminah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Negative Impact ◽  
Tax Planning ◽  
Primary Objective ◽  
Regression Coefficients ◽  
P Value ◽  
Discretionary Accrual ◽  
The Impact

<p>The primary objective of this study is to determine the impact of both earnings management and tax planning towards the value of the firm, corporate governance is measured by using score CGPI as moderating variable. This study uses purposive sampling method that generates 40 samples of company listings on the Indonesia Stock Exchange (IDX) and registered in participation Corporate Governance Perception Index (CGPI) during 2012 until 2015.</p><p><br />Based on the test result of regression analysis it showed that earnings management practices which is measured by using discretionary accrual shows regression coefficients of 2,557 with p-value of 0,015 or p-value is below 0,05, so it has negative impact to the value of the firm, then it can be concluded that the existence of earnings management can reduce the value of the firm. Tax planning activity is measured by using Cash_ETR which shows regression coefficients -0.956 with a p-value of 0,005 or p-value is below 0,05, which means it gives a negative impact to the value of the firm, so it can be concluded that the higher level of tax planning by management will have an impact on the declining value of the firm. Furthermore, corporate governance which is measured using the CGPI’s score is not a moderating variable between earnings management and value of the firm, showed by p-value of 0,090, whereas the relationships of tax planning and value of the firm can be moderated by corporate governance, showed by p-value of 0,024.</p><p><br />Keywords: CGPI’s Score, Corporate Governance, Discretionary Accrual, Earnings Management, Tax Planning, Value of the Firm</p>

Impact of Corporate Governance on the Cash Holding of the Firms: An Empirical Study of Indian Manufacturing Sector

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 47-52
Author(s):  
Karam Pal Narwal ◽  
Sonia Jindal
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Cash Holding ◽  
Executive Directors ◽  
Control Effect ◽  
Board Size ◽  
Indian Manufacturing Sector ◽  
The Impact

The paper empirically examines the impact of corporate governance on the cash holding of the firms. The components of corporate governance are measured by board size, board meeting, audit committee members, directors remuneration and non executive directors and the cash holding is measured with the log of average cash and size is taken as control variable for the control effect on the dependent variables. Moreover, correlation and panel regression model were employed to examine the relationship between the corporate governance and cash holding. Empirical data was collected from 96 firms over the period of 2004-05 to 2013-14. The results show that directors remuneration and the number of audit committee members positively influence the cash holding and the board size also positively influences the cash holding whereas, the non executive directors and the board meetings do not play any role in enhancing the cash holding.

scholarly journals Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria

2020 ◽  
Vol 9 (1) ◽  
pp. 1-14
Author(s):  
Temitope Olamide Fagbemi ◽  
Olubunmi Florence Osemene ◽  
Oyinlade Agbaje
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Management Practices ◽  
Discretionary Accruals ◽  
P Value ◽  
Secondary Source ◽  
Firm Characteristics ◽  
Ex Post ◽  
Management Entrenchment ◽  
The Impact

Sometimes the rivalry between shareholders and management is an indication of the level of entrenchment within the corporate environment. Managers are believed to routinely manipulate earnings in order to mislead shareholders about their company's actual economic outlook or performance. As a result, the study investigated the impact of managerial entrenchment, firm characteristics and earnings management of conglomerate companies in Nigeria. Employing the ex-post facto research design, the data was gathered from secondary source of the 6 listed conglomerate companies for the 11-year period running (2008-2018). The study used discretionary accruals a proxy for earnings management and to calculate discretionary accruals, the study used modified Jones model. The result showed that management entrenchment and firm characteristics have Impact on multinational firms ' earnings management in Nigeria. Specifically, from the conglomerate’s entrenchment proxies, CEO’s tenure has a positive and significant impact on earnings management (coff. =1.062821, p-value =0.0367) and management entrenchment as measured by CEO’s shareholding has a negative and insignificant effect on earnings management (coff. =-6252391, p-value = 0.4090) while firm size, profitability and leverage indicated a significant and positive impact on earnings management (coff, = 0.124587, p-value = 0.0000; coff. = 0.006647, p-value = 0.0431 and coff. = 0.032065, p-value = 0.0000). The study therefore recommended among others that management should reduce the debt in their capital structure in order to improve their companies’ value and their capital structure should be majorly financed by equity rather than debt and reduce CEOs tenure to minimise earnings management practices.

Is internal and external mechanism of governance enriching the performance of the banking sector of Pakistan?

2017 ◽  
Vol 17 (4) ◽  
pp. 629-642 ◽  
Author(s):  
Sundas Sohail ◽  
Farhat Rasul ◽  
Ummara Fatima
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Good Governance ◽  
Random Effect ◽  
Random Effect Model ◽  
General Meeting ◽  
Governance Structure ◽  
Board Structure ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to explore how governance mechanisms (internal and external) enhance the performance of the return on asset (ROA), return on equity (ROE), earning per share (EPS) and dividend payout ratios (DP) of the banks of Pakistan. The study incorporates not only the internal factors of governance (board size, out-ratio, annual general meeting, managerial ownership, institutional ownership, block holder stock ownership and financial transparency) but also the external factors (legal infrastructure and protection of minority shareholders, and the market for corporate control). Design/methodology/approach The sample size of the study consists of 30 banks (public, private and specialized) listed at the Pakistan Stock Exchange (PSE) for the period 2008-2014. The panel data techniques (fixed or random effect model) have been used for the empirical analysis after verification by Hausman (1978) test. Findings The results revealed that not only do the internal mechanisms of governance enhance the performance of the banking sector of Pakistan but external governance also plays a substantial role in enriching the performance. The findings conclude that for a good governance structure, both internal and external mechanisms are equally important, to accelerate the performance of the banking sector. Research limitations/implications Internal and external mechanisms of corporate governance can also be checked by adding some more variables (ownership i.e. foreign, female and family as internal and auditor as external), but they are not added in this work due to data unavailability. Practical implications The study contributes to the literature and could be useful for the policy makers who need to force banks to mandate codes of governance through which they can create an efficient board structure and augment the performance. The investments from different forms of ownership can be accelerated if they follow the codes properly. Social implications The study facilitates the bankers in incorporating sound codes of corporate governance to enhance the performance of the banks. Originality/value This work is unique as no one has explored the impact of external mechanism of governance on the performance of the banking sector of Pakistan.

scholarly journals PENGARUH MANAJEMEN LABA, PROPORSI KOMISARIS INDEPENDEN, PROFITABILITAS, CAPITAL INTENSITY, DAN LIKUIDITAS TERHADAP TAX AGGRESSIVENESS (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2012-2016)

2018 ◽  
Vol 11 (2) ◽  
Author(s):  
Leem Sufia ◽  
Ernie Riswandari
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Control Variable ◽  
Secondary Data ◽  
Capital Intensity ◽  
Tax Planning ◽  
Manufacturing Companies ◽  
Tax Aggressiveness ◽  
Purposive Sampling ◽  
Result Show

<p><strong><em>ABSTRACT</em></strong><strong><em>:</em></strong><em> Taxes are the main source of state revenue. The greater amount of tax revenue attainment can support the national economy. However, on the other hand, taxes are a burden that can reduce income for taxpayer. This encourage taxpayer to make every effort to reduce the tax burden from legal tax planning to illegal. Excessive tax planning will result to tax aggressiveness. </em><em>This study aims to examine, analyse, and obtain empirical evidence about the effect of earnings management, proportion of independent commissioners, profitability, capital intensity, and liquidity to tax aggressiveness. This research is also to compare the result of prior researches. The population in this research is 144 manufacturing companies that listed in Indonesian Stock Exchange from 2012 to 2016. Sample consist of 51 manufacturing companies, selected using one of nonprobability sampling method, which is purposive sampling type. The data type is secondary data which collected from IDX website. The statistical method used in this research is multiple regression analysis. These results indicates that earnings management and profitability have a significant influence to tax aggressiveness. While the proportion of independent commissioners, capital intensity, dan liquidity have no influence toward tax aggressiveness. But, if earnings management, proportion of independent commissioners, profitability, capital intensity, and liquidity simultantly tested with the control variable which are size and leverage the result show that there is significant association with the tax aggressiveness</em><em>.</em><em></em></p><p><em> </em></p><p><strong><em>Keyword</em></strong><em> : </em><em>Tax aggressiveness, earnings management, proportion of independent commissioners, profitability, capital intensity, liquidity, size, leverage.</em><em></em></p><p><strong> </strong></p><p><strong>ABSTRAK:</strong> Pajak merupakan sumber utama penerimaan negara. Semakin besar jumlah penerimaan pajak maka dapat mendukung perekonomian nasional. Namun, di sisi lain, pajak merupakan beban yang dapat mengurangi penghasilan bagi wajib pajak. Hal ini mendorong wajib pajak untuk melakukan segala upaya untuk menekan beban pajak mulai dari perencanaan pajak yang legal hingga ilegal. Perencanaan pajak yang berlebihan akan menimbulkan agresivitas pajak. Penelitian ini bertujuan untuk menguji, menganalisis, dan memperoleh bukti empiris mengenai pengaruh manajemen laba, proporsi komisaris independen, profitabilitas, <em>capital intensity</em>, dan likuiditas terhadap <em>tax aggressiveness</em>. Penelitian ini juga membandingkan hasil dengan penelitian sebelumnya. Populasi dari penelitian ini adalah 144 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia dari tahun 2012 sampai dengan 2016. Sampel terdiri dari 51 perusahaan manufaktur yang dipilih menggunakan salah satu metode <em>nonprobability sampling</em>, yaitu tipe <em>purposive sampling</em>. Tipe data adalah data sekunder yang diperoleh dari situs IDX. Metode statistik yang digunakan adalah analisis regresi berganda. Hasil penelitian menunjukkan bahwa manajemen laba dan profitabilitas berpengaruh signifikan terhadap <em>tax aggressiveness</em>. Sedangkan proporsi komisaris independen, <em>capital intensity</em>, dan likuiditas tidak berpengaruh terhadap <em>tax aggressiveness</em>. Namun, jika manajemen laba, proporsi komisaris independen, profitabilitas, <em>capital intensity</em>, dan likuiditas diuji secara bersama-sama dengan variabel kontrol, yaitu ukuran perusahaan dan <em>leverage</em> menunjukkan terdapat pengaruh terhadap <em>tax aggressiveness</em>.</p><p> </p><p><strong>Kata kunci</strong>: Agresivitas pajak, manajemen laba, proporsi komisaris independen, profitabilitas, <em>capital intensity</em>, likuiditas, ukuran perusahaan, <em>leverage</em>.</p>

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

scholarly journals PENGARUH PROFITABILITAS, LEVERAGE DAN CORPORATE GOVERNANCE TERHADAP PERENCANAAN PAJAK PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2017

2019 ◽  
Vol 4 (1) ◽  
pp. 131
Author(s):  
Indah Rahmadini ◽  
Nita Erika Ariani
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate

This study aims to examine the effect of profitability, leverage, and corporate governance on tax planning. The independent variables used in this study are profitability, leverage, institutional ownership, managerial ownership, independent commissioners and audit committees. While the dependent variable in this study is tax planning.Tax planning in this study the measured of Cash Effective Tax Rate (CETR). The population in this study are manufacturing companies listed on Indonesian Stock Exchange (BEI) in the period 2014-2017. Determination of samples in this study using purposive sampling method. There are 45 manufacturing companies listed on BEI used as research samples based on predetermined criteria. The results showed that profitability, leverage, managerial ownership, independent commissioners and audit committees had a significant effect on tax planning. Meanwhile institutional ownership has no significant effect on tax planning

Corporate governance and risk in cross-listed and Canadian only companies

2019 ◽  
Vol 57 (10) ◽  
pp. 2740-2757 ◽  
Author(s):  
Atreya Chakraborty ◽  
Lucia Gao ◽  
Shahbaz Sheikh
Keyword(s):  
Corporate Governance ◽  
Differential Effect ◽  
Composite Index ◽  
Governance Mechanism ◽  
Firm Risk ◽  
Governance Mechanisms ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
The Impact

Purpose The purpose of this paper is to investigate if there is a differential effect of corporate governance mechanisms on firm risk in Canadian companies cross-listed on US markets and Canadian companies not cross-listed (Canadian only companies). Design/methodology/approach Using a sample comprised of all Canadian companies included in the S&P/TSX Composite Index for the period 2009–2014, this study applies OLS and fixed effect regressions to investigate the effect of corporate governance mechanisms on firm risk. Interaction variables between governance mechanisms and the cross-listing status are used to examine if this effect is different for cross-listed firms. Findings Results indicate that the effect of board characteristics such as size, independence and proportion of female directors remains the same in both cross-listed and not cross-listed firms. CEO duality and insider equity ownership impact firm risk only in cross-listed companies, while institutional shareholdings, environmental, social and governance disclosure and family control affect firm risk in Canadian only firms. Overall, the empirical results indicate that some governance mechanisms impact firm risk only in firms that cross-list, while others are well-suited for Canadian only firms. Practical implications This study suggests that some of the differences between Canadian companies that cross-list and the Canadian companies that do not cross-list in US stock markets may change the impact of governance mechanisms on firm risk. Therefore, these findings have important implications for the design of governance mechanisms in Canadian firms. Since some of these differences are common to other economies, the conclusions can be extended to companies in other countries with similar governance structures. Originality/value Although previous studies have investigated the effect of governance mechanism on firm risk, this is the first paper that studies the differential effect for companies that cross-list in US markets. Specifically, differences in the ownership structure, firm control and in the regulatory and institutional environment, may explain this differential effect. Unlike most of the previous studies that focus on the effect of individual governance mechanisms, this study uses several mechanisms and their interactions at the same time.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

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