Earnings Management, Corporate Governance and Tax Avoidance: The Case in Indonesia

2017 ◽  
Vol 2 (4) ◽  
pp. 28-35
Author(s):  
Lulus Kurniasih ◽  
Sulardi Sulardi ◽  
Sri Suranta
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Governance Mechanisms ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Corporate Governance Mechanisms

Objective - This study aims to determine the effect of earning management and corporate governance mechanisms on corporate tax avoidance. Methodology/Technique - Corporate governance mechanisms use institutional ownership, the size of the board of commissioners, the percentage of independent commissioners, auditing committees, and audit quality as proxies. Meanwhile, earnings management uses the modified Jones model. The sample of this study include non-financial companies that are listed on the Indonesian Stock Exchange (IDX) between 2014 and 2016. Findings - Corporate tax avoidance can be detected by using the effective tax rate (ETR), which is the ratio of income to tax expenses. This sample was chosen using a purposive sampling method, resulting in 871 firms. The results suggest that earnings management has a significant impact on ETR. Novelty - This study identifies that only independent commissioners and audit quality have a significant influence on ETR. Type of Paper - Empirical Keywords: Tax Avoidance; Earnings Management; Corporate Governance; Effective Tax Rate; Audit Quality. JEL Classification: G3, G39, G39.

scholarly journals Pengaruh Ukuran Perusahaan Dan Corporate Governance Terhadap Manajemen Laba Di Industri Perbankan Indonesia

2021 ◽  
Vol 9 (1) ◽  
pp. 111-120
Author(s):  
Karina Karina ◽  
Sutarti Sutarti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Banking Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Governance Mechanisms ◽  
Audit Firm ◽  
Corporate Governance Mechanisms ◽  
Size Firm

The purpose of this research is to provide empirical evidence of the affect of ownership concetration, firms size, and corporate governance mechanisms on earnings management. Ownership concetration was measure by the biggest stock of individual or organization, firms size was measure by natural logaritma of net assets, and corporate governance mechanisms were measure by three variabels (composition of board of commisioner, audit quality were measure by industry specialize audit firm, and composition of audit committee). Earnings management was measure by discretionary accruals use Modified Jones Method. The population of this research is 41 companies in the banking sector which were listed in Indonesian Stock Exchange (IDX). The research data were collected from banking companies financial statement for the period of 2016 to 2018. Based on purposive sampling method. The reseacrh hypotesis were tested using multiple regression analysis. The results of this research show that firm size, firm of commissioner and proportion of commissioner have significant relationships with earnings management. Next, variables composition of board of commissioner, ownership concetration and specialize audit firm have no significant relationship with earnings management. Keywords: ownership concetration, firms size, corporate governance, earnings management

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP TAX AVOIDANCE

2020 ◽  
Vol 13 (1) ◽  
pp. 115-120
Author(s):  
Agustina Mapadang
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Tax Rate ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Negative Effect

This study aims to analyze the influence of corporate governance mechanisms on tax avoidance. Corporate governance mechanisms are measured by Independent Commissioners and Institutional Ownership while tax avoidance is measured by the Avoidance Tax Rate. The research population is all manufacturing companies listed on the Indonesia Stock Exchange in 2012-2016 using purposive sampling method. The number of observations of 435 and the type of research is the analysis of causal relationships to see the effect of each variable. The results of the study show that corporate governance mechanisms negatively affect tax avoidance; the board of directors has a positive effect on tax avoidance and institutional ownership has a negative effect on the value of the company.

scholarly journals Pengaruh Corporate Governance, Capital Intensity dan Profitabilitas Terhadap Tax Avoidance pada Sektor Pertambangan

2020 ◽  
Vol 20 (2) ◽  
pp. 697
Author(s):  
Jumriaty Jusman ◽  
Firda Nosita
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Capital Intensity ◽  
Effective Tax Rate ◽  
Mining Sector ◽  
Tax Rate ◽  
Quality Audit

The study aims to examine the influence of Corporate Governance, Capital Intensity and Profitability on Tax Avoidance.  The proxy of Corporate governance was audit quality and audit committee, while the profitability factor used is Return on Asset (ROA) and Tax Avoidance by Cash Effective Tax Rate. The sample was chosen by purposive sampling and resulted 21 companies from mining sector listed oin Indonesian Stock Exchange from 2016 to 2018. The data analyzed by using multiple linier regression. The result showed that audit quality, audit committee, and capital intensity have insignificant influence on tax avoidance. While ROA has negative significant on tax avoidance

scholarly journals The Effect of Good Corporate Governance on Tax Avoidance: An Empirical Study on Manufacturing Companies Listed in IDX period 2010-2013

2016 ◽  
Vol 1 (1) ◽  
pp. 28-38 ◽  
Author(s):  
Vivi Adeyani Tandean ◽  
Winnie Winnie
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Good Corporate Governance ◽  
Positive Effect

This study aims to obtain an empirical evidence about the effect of good corporate governance on tax avoidance which becomes a proxy of current ETR (Effective Tax Rate). The samples of this study were 120 manufacturing companies listed in Indonesian Stock Exchange in 2010 – 2013. The hypothesis testing used multiple regression analysis. The result of this study show that audit committee has a positive effect on tax avoidance in partial but the executive compensation, executive character, company size, institutional ownership, boards of commisioners' proportion, audit committee and audit quality have simultaneous effect to define tax avoidance.

scholarly journals Pengaruh Corporation Risk dan Good Corporate Governance terhadap Tax Avoidance dengan Kepemilikan Institusional sebagai Variable Pemoderasi

2020 ◽  
Vol 17 (2) ◽  
Author(s):  
Tryas Chasbiandani ◽  
Tri Astuti ◽  
Sri Ambarwati
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Tax Rate ◽  
Good Corporate Governance ◽  
Common Effect ◽  
The Common ◽  
Corporate Risk

Tax avoidance measured by Earning Tax Rate (ETR) is considered to be able to describe the real activities of tax avoidance carried out by the company. The purpose of this study was to analyze the effect of Corporation Risk and Good Corporate Governance on Tax Avoidance with Institutional Ownership as a Moderating Variable. This study uses a sample of non-banking and financial companies listed on the Indonesia Stock Exchange for the period of 2014-2016. The analysis in this study uses the common effect method. The results of this study indicate that corporate risk does not significantly influence tax avoidance, but with institutional ownership as a moderating variable, corporate risk has a significant effect on corporate tax avoidance. Corporate governance as measured by institutional ownership, board of commissioners and audit quality has a significant effect on tax company avoidance.Tax avoidance yang diukur berdasarkan Earning Tax Rate (ETR) dianggap mampu menggambarkan aktivitas nyata dari tax avoidance yang dilakukan oleh perusahaan. Tujuan dari penelitian ini adalah untuk menganalisis pengaruh Corporation Risk dan Good Corporate Governance Terhadap Tax Avoidance dengan  Kepemilikan Institusional  Sebagai Variable pemoderasi. Penelitian ini menggunakan sampel perusahaan non perbankan dan keuangan yang terdaftar di Bursa Efek Indonesia periode 2014 – 2016. Analisis dalam penelitian ini menggunakan metode common effect.  Hasil dari penelitian ini menunjukkan bahwa corporate risk tidak berpengaruh secara signifikan terhadap tax avoidance, namun dengan kepemilikan institusional sebagai variabel pemoderasi, corporate risk berpengaruh signifikan terhadap tax avoidance perusahaan.Corporate governance yang diukur dengan kepemilikan institusional, dewan komisaris dan kualitas audit berpengaruh signifikan terhadap tax avoidance perusahaan. 

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP TRANSPARANSI

2020 ◽  
Vol 1 (1) ◽  
pp. 52-67
Author(s):  
Dian Ramadhani ◽  
Raja Adri Satriawan Surya ◽  
Arumega Zarefar
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Stock Exchange ◽  
Statistical Tests ◽  
Foreign Ownership ◽  
Debt Financing ◽  
Annual Reports ◽  
Managerial Ownership ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

This study aims to examine the influence of corporate governance mechanisms to transparency. Corporate governance mechanisms examined in this study include internal mechanism consisting of: commissioners, managerial ownership, foreign ownership, debt financing, and audit quality. The population in this study is a registered company in Indonesia Stock Exchange for the period 2015 - 2018. The sample in this research determined by purposive sampling method with a total sample of 103 annual reports. Statistical tests showed that the board of directors, managerial ownership, foreign ownership, debt financing has no effect on the performance of the company while the quality of the audit have an impact on transparency.

scholarly journals Does The Presence Of Independent Directors Influence Accruals Management?

2011 ◽  
Vol 25 (6) ◽  
Author(s):  
Ramzi Benkraiem
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Boards Of Directors ◽  
Audit Quality ◽  
Stock Exchange ◽  
Independent Directors ◽  
Accruals Management ◽  
Big 4 ◽  
Corporate Governance Mechanisms

<p class="MsoNormal" style="text-align: justify; margin: 0in 38.3pt 0pt 0.5in;"><span style="font-size: 10pt; mso-ansi-language: EN-US;"><span style="font-family: Times New Roman;">Recent debates about the functioning of boards of directors have focused on the disciplinary role of independent directors (ID). Evaluating the effectiveness of this role is an interesting empirical question. This study seeks to examine the influence of these directors and two other corporate governance mechanisms<span style="color: black;">, namely the audit quality and the ownership structure, on earnings management as measured by working capital discretionary accruals (WCDAC). The analysis, conducted over a period of 4 years from 2001 to 2004, is based on a sample of 239 different French companies listed on the Paris stock exchange. </span>The findings show that the presence of ID can moderate the management of WCDAC. This role appears to be more effective <span style="color: black;">when these ID make up at least one third of the members of boards of directors, as recommended by the Vi&eacute;not 1999 report. The Big 4 auditors can also limit this discretionary adjustment. However, no statistically significant relationship was observed between dispersion vs. concentration of ownership structure and WCDAC. This study adds to the limited research into the relationship between corporate governance and earnings management in France. It also gives empirical evidence on the effectiveness of the Vi&eacute;not 1999 report&rsquo;s recommendations. Thus, it should be of interest to academics as well as regulators in preparing and amending corporate governance laws.</span></span></span></p>

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