scholarly journals THE IMPACT OF THE 2009 INDONESIA’S DIVIDEND TAX CUT ON DIVIDEND PAYMENT

2019 ◽  
Vol 2 (2) ◽  
pp. 1-5
Author(s):  
I Wayan Agus Eka
Keyword(s):  
Positive Impact ◽  
Stock Exchange ◽  
Effective Tax Rate ◽  
Intensive Margin ◽  
Dividend Payment ◽  
Tax Rate ◽  
One Year ◽  
The Impact ◽  
Dividend Tax ◽  
Nominal Amount

On January 1, 2009 the effective tax rate for individual-recipient dividend fell significantly from 35% to 10%. This paper investigated the impact of the dividend tax cut policy on dividend payment in three aspects i.e. extensive margin, intensive margin and dividend per share amount, an adoption from Chetty and Saez (2004) approach. I used publicly available data provided by The Indonesian Stock Exchange and The Indonesian Central Securities Depository. I found that one year after the tax cut policy, the fraction of the firms paying dividend increase and reach its peak in 2011. From intensive margin approach, the percentage of firms that increase their dividend per share amount also increase one year after the policy. Using regression analysis, this paper also found that the tax cut policy increased the dividend per share amount by 35.03. This study, to my knowledge, provides the first empirical evidence of the effect of dividend tax cut policy and concludes that the policy has positive impact on dividend payment in term of fraction of firms paying dividend, fraction of firms increasing their dividend and the nominal amount of the dividend per share.

scholarly journals Impact of Corporate Governance on Dividend Policy: Evidence from Pakistan

2021 ◽  
Vol 3 (3) ◽  
pp. 353-366
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Payout Policy ◽  
Least Square ◽  
Political Connection ◽  
Dividend Payment ◽  
The Impact

Purpose: The objective of the paper is to examine the impact of corporate governance on the dividend payout policy of firms listed on the Pakistan stock exchange during 2010-2020. As Pakistani investors face issues regarding their return in the shape of dividends and depend upon the firm’s corporate governance strength. To test whether changes in firm code of corporate governance have a significant influence on dividend policy. Design/Methodology/Approach: The panel data has been used for the period 2010-2020 and panel least square has been applied. Further, to test the association, following factors such delisting risk, government tenure, political connection with institutional shareholding as many political firms hold corporate shares which influence the decision to pay dividends. Findings: Findings from the fixed effect model show that corporate governance has a negative impact on dividend policy while government tenure, politically connected firm has a positive impact on the dividend. The study also concludes that firm size, profitability, tax, asset turnover, leverage, and firm shareholding also influence firm dividend payment behavior. Implications/Originality/Value: The implication of study reveals that firms must focus on strong their governance and include more independent directors on the board which leads to favorable strategies regarding investors. The investor must invest in those firm where lower political connection, pay continuous dividend either high or low decease/increase delisting chances, strong corporate governance and firm specific factors also lead to make decision of dividend payment.

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 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 DAMPAK KEBIJAKAN DAN MAKROEKONOMI TERHADAP EFEKTIVITAS PENERIMAAN PAJAK DI BURSA EFEK INDONESIA

2018 ◽  
Vol 8 (2) ◽  
pp. 400
Author(s):  
Mursal Harahap ◽  
Bonar M Sinaga ◽  
Adler H Manurung ◽  
Tubagus Nur Ahmad Maulana
Keyword(s):  
Annual Report ◽  
Stock Exchange ◽  
Equation System ◽  
Simultaneous Equation ◽  
Tax Revenue ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Simultaneous Equation System ◽  
Seidel Method ◽  
The Impact

Abstract. The purpose of this research is to analyse the impact of policy and macroeconomic change on tax revenue and its effectiveness in Consumer Goods Industry sector (CGI) and Infrastructure, Utilities and Transport (IUT) sector. The analysis employed simultaneous equation system model estimated with 2SLS and simulation with Seidel method. Data was collected from annual report of the companies which listed on Indonesia Stock Exchange. The results showed that the change of tax receipts and effective tax rate (ETR) happened due to changing in policy and macroeconomics in the CGI sector which is greater than the IUT sector. Furthermore, if the rupiah exchange rate depreciates, the policy regarding tax rate increment could increase tax revenue and ETR which is greater than the BI rate reduction policy in both sectors.

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 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 Investigating the Effect of Dividend Policy on the Wealth of Stockholders of Listed Companies on the Ghana Stock Exchange

2016 ◽  
Vol 8 (7) ◽  
pp. 47
Author(s):  
Evans Fayol Nkuah ◽  
Hadrat Yusif
Keyword(s):  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Price ◽  
Secondary Data ◽  
Annual Reports ◽  
Corporate Management ◽  
Dividend Payment ◽  
Ghana Stock Exchange ◽  
The Impact

This paper has examined the impact of dividend policy on the wealth of stockholders of selected registered companies on the Ghana Stock Exchange (GSE). Secondary data were collected on 25 listed firms using annual reports from 2005 to 2011. The dependent variable was wealth of stockholders proxied by market price per stock. The explanatory variables included dividend per stock (DPS), retained earning per stock (REPS), financial leverage (FLEV), and price earning ratio (PER). Fixed-effect model was fitted to the data. The regression results showed that dividend payment, retained earning, and price earning ratio have significant positive impact on the stock market price. It was also found that the impact of dividend is more pronounced than that of retained earning in the context of companies registered on the Ghana Stock Exchange. It is therefore recommended that optimal trade-off between dividend payment and retained earning be established by corporate management to maximise the wealth of stockholders.<br /><p> </p>

scholarly journals KOMITE AUDIT SEBAGAI PEMODERASI PENGARUH WORKLOAD DAN MASA PERIKATAN AUDIT PADA KUALITAS AUDITe

2016 ◽  
Author(s):  
Theresia Julina Rusli ◽  
I Dewa Nyoman Wiratmaja
Keyword(s):  
Audit Committee ◽  
Sampling Method ◽  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Quality Audit ◽  
Final Sample ◽  
The Impact

This  research  aims to find empirical evidence  about the impact  of  workload  and  audit tenure  on  audit quality  and  using audit  committee  as  a  moderating  variable. This  research  focused  on  manufacturing companies  that  listed  on  the  Indonesia Stock Exchange. Sample was collected using   purposive sampling method and resulted 31  companies as a final sample.  The  data are analyzed by using Moderated Regression Analysis (MRA). The results of  this research indicate  that the  workload  has a negative  impact on  audit quality.  Audit tenure has a positive impact on audit quality. Audit committee reduces the negative impact of workload on audit quality. And audit committee reduces the positive impact of audit tenure on audit quality.

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