scholarly journals Determinant of Thin Capitalization in Multinational Companies in Indonesia

2018 ◽  
Vol 1 (02) ◽  
pp. 69-78
Author(s):  
Adi Nugroho ◽  
Trisni Suryarini
Keyword(s):  
Firm Size ◽  
Audit Committee ◽  
Tax Avoidance ◽  
Multinational Companies ◽  
Least Square ◽  
Audit Committees ◽  
Analytical Technique ◽  
Tax Haven ◽  
Thin Capitalization ◽  
Tax Uncertainty

  Thin capitalization is an action of tax avoidance by having total debt more than total capital and that debt obtained from the same group of companies. This research aims to obtain the empirical evidence regarding the influence of multinationalism, tax haven utilization, tax uncertainty, firm size, and audit committee size against thin capitalization. The population in this research is multinational companies listed on the Indonesian Stock Exchange in the year of 2014-2016. The sampling technique was purposive sampling and got an analysis unit of 40 companies. Ordinal Least Square (OLS) with SPSS is used as the analytical technique. The results show that multinationalism, tax haven utilization, tax uncertainty, and firm size have a significant positive effect on thin capitalization. The results also prove that the size of audit committees has a significantly negative effect on thin capitalization. This research concludes that thin capitalization is influenced by multinationalism, tax haven utilization, tax uncertainty, firm size, and audit committee size. Suggestions related to this research are for further research to ensure the measurement of tax uncertainty more objectively and to extend sampling time. Keywords: thin capitalization, multinationalism, tax haven, tax uncertainty

scholarly journals THE EFFECT OF GOOD CORPORATE GOVERNANCE ON TAX AVOIDANCE: EMPIRICAL STUDY OF THE INDONESIAN BANKING COMPANY

2019 ◽  
Vol 2 (02) ◽  
Author(s):  
Waluyo Waluyo
Keyword(s):  
Corporate Governance ◽  
Tax Evasion ◽  
Quantitative Research ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Least Square ◽  
Audit Committees

The purpose of this study aims to examine the effect of corporate governance on tax evasion. Corporate governance is proxied represented by the audit committee, the proportion of independent board of commissioners, institutional ownership and audit quality. Tax evasion is measured by the size of the gap of an effective tax rate. This study uses quantitative research design and data from the Finance Authority Service / OJK listed on the Indonesia Stock Exchange. By using purposive sampling in the observation period of 2013-2016, it has obtained 92 observations. The Data has been analyzed by using ordinary least square regression model. Regression results has identified that the proportion of independent board of commissioners and corporate performance have negatively affected tax evasion. Audit committees, audit quality and the size of company positively affected tax evasion. However, the institutional ownership has had no significant effect on tax evasion. These results have indicated that some of the mechanisms of corporate governance in Indonesia have been effective according to its function for the shareholders.

scholarly journals FAKTOR YANG MEMPENGARUHI PENGHINDARAN PAJAK

2021 ◽  
Vol 16 (2) ◽  
pp. 203
Author(s):  
Yuliawati Yuliawati ◽  
Paulina Sutrisno
Keyword(s):  
Firm Size ◽  
Business Strategy ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Deferred Tax ◽  
Tax Expense

<p><em>This study aims to obtain empirical evidence regarding business strategy, deferred tax expense and company characteristics such as audit committees, proportion of independent commissioners, institutional ownership, firm size on tax avoidance. These factors were retested because there were still inconsistent results from previous studies and there were variables that were rarely studied. This study uses a sample that includes 396 non-financial companies listed on the Indonesia Stock Exchange (IDX) during the 2016 to 2018 period, which is the period surrounding the tax amnesty policy in Indonesia. This study uses the cash effective tax rate (CETR) which is considered as a measure that can describe the amount of tax avoidance by the company. The research hypotheses were tested using multiple linear regression analysis. The results of this study indicate that business strategy have a positive effect on tax avoidance</em> <em>and firm size has a negative effect on tax avoidance, while deferred tax expense, audit committee, proportion of independent commissioners, institutional ownership have no effect on tax avoidance. The theoretical contribution of this study is to add to the development of previous literature related to the effect of business strategy, deferred tax expense and company characteristics such as audit committees, proportion of independent commissioners, institutional ownership, firm size on tax avoidance.</em></p>

scholarly journals Tax Avoidance of Mining Companies From the Return on Assets, Institutional Ownership, and Audit Committee Perspectives

2020 ◽  
Vol 1 (2) ◽  
pp. 076-089
Author(s):  
Tjahjani Murdijaningsih ◽  
Maratus Solihah ◽  
Krisnhoe Sukma Danuta
Keyword(s):  
Audit Committee ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Significant Decline ◽  
Audit Committees ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Return On Assets ◽  
Mining Companies ◽  
State Revenue

Taxes are the largest state revenue, but tax companies are a burden that can reduce profits received by shareholders. Then in 2019 tax revenue from the mining sector in 2019 experienced a significant decline. Based on this, this study aims to see how the level of profitability of companies, institutional ownership and audit committees affect mining companies in avoiding taxes. By using 19 company samples for the 2016-2018 period, researchers found that profitability and audit committees could increase corporate tax avoidance. whereas institutional ownership has no influence on tax avoidance.

scholarly journals Faktor-Faktor yang Mempengaruhi Tax Avoidance

2020 ◽  
Vol 20 (1) ◽  
pp. 131
Author(s):  
Anis Susilowati ◽  
Riana Rahmawati Dewi ◽  
Anita Wijayanti
Keyword(s):  
Cash Flow ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Audit Committees ◽  
Company Size ◽  
Sales Growth ◽  
Sample Data ◽  
Analytical Tools ◽  
Research Show

The research aims to determine the influence of company size, leverage, profitability, sales growth, audit committee, and cash flow operations against tax avoidance. Dependent variables in this study are tax avoidance while the independent variables used in this research are company size, leverage, profitability and audit committees. This research is focused on the LQ45 company listed on the Indonesia Stock Exchange (IDX) period 2015-2018. The selection of samples in this study used the purposive sampling method, thus obtained a sample of 51 sample data from the LQ45 company population listed on the Indonesia Stock Exchange (IDX) period 2015-2018. The analytical tools used in this study are multiple linear regression analyses. The results of this research show that the variable cash flow operations affect the tax avoidance, while the company size variables, leverage, profitability, sales growth and audit committees do not affect the tax avoidance.

scholarly journals DETERMINANTS OF EARNING PERSISTENCE

ACCRUALS ◽  
2020 ◽  
Vol 4 (01) ◽  
pp. 104-119
Author(s):  
Ardela Soehartinah Gunawan ◽  
Icih Icih ◽  
Trisandi Eka Putri
Keyword(s):  
Firm Size ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Sample Selection ◽  
Audit Committees ◽  
Earnings Persistence ◽  
Managerial Ownership ◽  
Company Size ◽  
Observation Period

This study aims to determine the effect of firm size, leverage, managerial ownership, listing age and audit committee on earnings persistence. The data used is data on banking companies listed on the Indonesia Stock Exchange (IDX) period 2015-2017. The sample selection uses a purposive sampling method. The samples that fit the criteria were 29 companies during the 2015-2017 observation period, so that the final number of observational data was 87 (3 × 29). Then data were analyzed using the SPSS 22 application.The results of this study indicate that firm size, managerial ownership and listing age do not affect earnings persistence. While leverage and audit committees negatively affect earnings persistence. Variables of company size, leverage, managerial ownership, listing age and audit committee jointly influence the persistence of earnings.

The role of audit committees in mitigating earnings management: evidence from Jordan

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh ◽  
Modar Abdullatif ◽  
Beatriz Aibar-Guzmán
Keyword(s):  
Developing Countries ◽  
Earnings Management ◽  
Audit Committee ◽  
Discretionary Accruals ◽  
Least Square ◽  
Audit Committees ◽  
Institutional Setting ◽  
Content Type ◽  
The Impact

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.

scholarly journals When Does Tax Avoidance Result in Tax Uncertainty?

2018 ◽  
Vol 94 (2) ◽  
pp. 179-203 ◽  
Author(s):  
Scott D. Dyreng ◽  
Michelle Hanlon ◽  
Edward L. Maydew
Keyword(s):  
Transfer Pricing ◽  
Tax Avoidance ◽  
Pricing Strategies ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Time Period ◽  
Tax Haven ◽  
Tax Benefits ◽  
Tax Uncertainty

ABSTRACT We investigate the relation between tax avoidance and tax uncertainty, where tax uncertainty is the amount of unrecognized tax benefits recorded over the same time period as the tax avoidance. On average, we find that tax avoiders, i.e., firms with relatively low cash effective tax rates, bear significantly greater tax uncertainty than firms that have higher cash effective tax rates. We find that the relation between tax avoidance and tax uncertainty is stronger for firms with frequent patent filings and tax haven subsidiaries, proxies for intangible-related transfer pricing strategies. The findings have implications for several puzzling results in the literature.

scholarly journals The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

2020 ◽  
Vol 2 (4) ◽  
pp. 66-85
Author(s):  
Feren Frisca Tania ◽  
. Mukhlasin
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Audit Committees ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Negative Effect

This study aims to analyze the effect of the effectiveness of internal control, independent commissioners, the expertise of the board of commissioners, the number of audit committees, and the expertise of the audit committee on tax avoidance in manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. This research is expected to be a material consideration for companies in making decisions related to taxation. The deductive approach used in this study by developing hypotheses based on relevant theories and findings of previous studies. Agency theory is used to see the effect of corporate governance on tax avoidance. The data collection method uses secondary data from the company's financial statements and annual reports according to specific criteria. Data analysis was performed by descriptive statistics and multiple linear regression. The results of the regression analysis prove that effectiveness of internal control and number of audit committees had a positive effect which means higher effectiveness of internal control and number of audit committees cause more tax avoidance, conversely independent commissioners and expertise of the board of commissioners had a negative effect which shows greater independent commissioners and expertise of the board of commissioners cause less tax avoidance. Another result claim that the expertise of the audit committee did not affect on tax avoidance. In contrast to previous studies, this study is more varied by combining several independent variables. JEL Codes: G34, H26.

scholarly journals Determinan Penghindaran Pajak Dengan Corporate Social Responsibility Sebagai Variabel Moderasi

1970 ◽  
Vol 4 (02) ◽  
pp. 182-194
Author(s):  
Purwoko Erie Dharmawan ◽  
Syahril Djaddang ◽  
Darmansyah Darmansyah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Significant Influence ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Jel Classification ◽  
Tax Haven ◽  
Corporate Social ◽  
Thin Capitalization

ABSTRACT This study aimed to analyze the influence of transfer pricing, thin capitalization, dan tax haven utilization against tax avoidance. This sudy also uses corporate social responsibility as a moderating variable. This study uses secondary data from manufacturing listed company during period of 2014-2016. Samples taken by using purposive sampling method and obtain 189 sampel consist of 63 companies during three years period. The method of testing the data used in this study is panel data regression analysis and descriptive statistics. The result showed that the transfer pricing has significant effect on tax avoidance, while thin capitalization dan tax haven utilization has no significant effect on tax avoidance. Corporate social responsibility has significant influence as moderating between transfer pricing and tax avoidance, but corporate social responsibility has no significant influence as moderating between thin capitalization dan tax haven utilization and tax avoidance. ABSTRAK Penelitian ini bertujuan untuk mengetahui pengaruh transfer pricing, thin capitalization, dan tax haven utilization terhadap penghindaran pajak. Peneltian ini juga menggunakan variabel corporate social responsibility sebagai variabel yang memoderasi pengaruh transfer pricing, thin capitalization, dan tax haven utilization terhadap penghindaran pajak. Studi ini menggunakan data sekunder dari perusahaan manufaktur yang terdaftar di bursa efek indonesia. Pengambilan sampel dilakukan dengan metode purposive samping. Sampel yang diperoleh sebanyak 189 sampel, terdiri dari 63 perusahaan manufaktur selama periode tiga tahun yaitu 2014 – 2016. Metode analisis yang digunakan dalam mengolah data menggunakan analisis regresi data panel. Hasil penelitian menunjukkan bahwa transfer pricing berpengaruh signifikan terhadap penghindaran pajak, sementara thin capitalization dan tax haven utilization tidak berpengaruh signifikan terhadap penghindaran pajak. Corporate social responsibility dapat memoderasi pengaruh transfer pricing terhadap penghindaran pajak, namun corporate social responsibility tidak dapat memoderasi pengaruh thin capitalization dan tax haven utilization terhadap penghindaran pajak. JEL Classification: MH14, H26, H32

scholarly journals Financial Distress, Tax Loss Carried Forward, Corporate Governance and Tax Avoidance

2020 ◽  
Vol 11 (1) ◽  
pp. 54-54
Author(s):  
Mayang Sekar Pembayun Khamisan ◽  
Silvy Christina ◽  
Silvy Christina
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Financial Distress ◽  
Audit Committee ◽  
Audit Quality ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Tax Loss

One of the biggest state's income is tax. In Indonesia, almost all activities carried out by the public are taxable, for example; grocery for daily activities, electronic equipment purchased, and employee income tax. Taxes have a very important role on state revenue because of taxes were main sources in contributing funds used to finance government spending and national development, but for the tax company is a burden that reduces the company's net profit, so the company will try to reduce the tax burden. To control the amount of tax payments is through tax avoidance, known as tax avoidance which is part of tax planning. Therefore this study aims to determine the effect of financial distress, loss compensation, institutional ownership, managerial ownership, audit committee, audit quality, company size, and return on assets to tax avoidance actions. The companies used in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2016-2018. The number of research samples used were 162 data. The method of sampling used purposive sampling and this research used multiple regression analysis to test the hypothesis. This research shows that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on asset have no influence on tax avoidance. This research shows that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on asset have no influence on tax avoidance. Suggestions for further research to extend the study period of more than 3 years. In addition, it is hoped that further researchers can replace or add other independent variables such as sales growth. Keywords: Financial Distress, Tax Loss Carried Forward, Corporate Governance, Tax Avoidancae

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