scholarly journals The Effect of Environmental Uncertainty and Financial Distress on Tax Avoidance with Business Strategy as Moderating Variables

2021 ◽  
Vol 1 (9) ◽  
pp. 943-951
Author(s):  
Rosalina Nurdiana
Keyword(s):  
Financial Distress ◽  
Business Strategy ◽  
Research Method ◽  
Tax Avoidance ◽  
Environmental Uncertainty ◽  
Secondary Data ◽  
Moderating Effect ◽  
Business Strategies ◽  
Tax Law ◽  
Moderating Variables

Tax avoidance is defined as one of the actions taken by taxpayers to reduce their tax burden legally. Tax avoidance is carried out by taking advantage of loopholes in the tax law that are not or have not been regulated, so that it is legal and does not violate the law. The purpose of this study is to analyze the effect of environmental uncertainty on tax avoidance, analyze the effect of financial distress on tax avoidance, analyze the moderating effect of business strategy on the effect of environmental uncertainty on tax avoidance and analyze the moderating effect of business strategy on the effect of financial distress on tax avoidance. This research method is a quantitative method using secondary data. The results of this study indicate that environmental uncertainty has a positive and significant effect on tax avoidance, financial distress has no effect on tax avoidance, business strategies moderate the effect of environmental uncertainty on tax, avoidance, and business strategies cannot moderate the effect of financial distress on tax avoidance.

Contingent fit between business strategies and environmental uncertainty

2019 ◽  
Vol 28 (1) ◽  
pp. 139-167
Author(s):  
Dianwicaksih Arieftiara ◽  
Sidharta Utama ◽  
Ratna Wardhani ◽  
Ning Rahayu
Keyword(s):  
Business Strategy ◽  
Tax Avoidance ◽  
Environmental Uncertainty ◽  
Emerging Countries ◽  
Data Availability ◽  
Business Strategies ◽  
Corporate Tax ◽  
Competitive Intensity ◽  
Content Type ◽  
Positive Effect

Purpose This study aims to examine the contingent fit between business strategies and environmental uncertainty and its effect on corporate tax avoidance. Design/methodology/approach This study uses a two-stage linear regression method comprising multinomial logistic regression and panel data regression. Findings This study finds that under highly uncertain conditions, the contingent fit of prospector strategy is higher than the contingent fit of other two strategies, i.e. defender and analyzer strategy. The study fails, however, to demonstrate that under highly uncertain conditions, this study finds that under highly uncertain conditions the contingent fit of a “prospector” strategy is higher than for “defender” and “analyzer” strategies. The study fails, however, to demonstrate that under highly uncertain conditions the contingent fit of a defender strategy is higher than that of an analyzer strategy. The study also finds that the contingent fit between prospector strategy and environmental uncertainty has a positive effect on tax avoidance, and this effect is higher than for the misfit strategies. Moreover, in such environments the fit level of a defender strategy has a negative effect on tax avoidance while environmental uncertainty has a positive effect on tax avoidance. Research limitations/implications This study estimated competition uncertainty using the Herfindahl index to measure competitive intensity in an industry. However, only the data from public listed companies was used due to a lack of data availability for non-public companies. Consequently, further study is recommended to include the total number of companies within an industry as a proxy of competitive intensity. Practical implications The results implied that managers, not only in Indonesia but also in other countries as well, specifically emerging countries (generally the environmental uncertainty in emerging countries is high) should consider the contingent factors when making business strategy decisions. Managers must be aware of the contingent fit with environmental uncertainty, and therefore, must assess external conditions prudently. Furthermore, the results of this study showed that managers should pay more attention to the effects of their decisions on corporate tax avoidance, while aligning their business strategy decisions with corporate tax planning strategy to obtain an optimal outcome for the company. Social implications The Directorate General of Taxes and Board of Fiscal Policy, as regulators, need to comprehend environmental uncertainty to issue various policies that can ease the burden of the taxpayer to remain in business, particularly during the turbulence environment so that can prevent the companies doing illegal practices and will eventually reduce the number of tax avoidance. Originality/value This study developed alternative measure of tax avoidance, which is tax avoidance latent variable score (TAXLVS). The TAXLVS was derived from confirmatory factor analysis of previous existing tax avoidance measurements. This study is also the first that analyzes the effect of business strategy on tax avoidance using contingency approach.

scholarly journals Business Strategy for Longgar Outfit as a New Fashion Brand

2020 ◽  
Vol 1 (1) ◽  
pp. 14-24
Author(s):  
Sofia Nuraini ◽  
Mustika Sufiati Purwanegara
Keyword(s):  
Business Strategy ◽  
Swot Analysis ◽  
Secondary Data ◽  
Business Environment ◽  
Business Strategies ◽  
Primary Data ◽  
Environment Analysis ◽  
Root Cause ◽  
Fashion Brand ◽  
New Business

Longgar Outfit is a local fashion brand from Bandung that focuses on plus size women. Longgar Outfit has the vision to become the leading plus size fashion brand in Bandung. Unfortunately, since the appearance of Longgar Outfit on the market in early January 2019, Longgar Outfit has faced problems in penetrating the market. The problem currently being faced by Longgar Outfit is unstable sales. The purpose of the research is to find out a suitable business strategy in order to stable Longgar Outfit sales. This research is conducted to summarize the business strategy for Longgar Outfit using internal and external business environment analysis, customer analysis, and SWOT analysis to determine the root cause. Use a qualitative approach as a research method for understanding a social phenomenon. This approach will find the current business situation, planning business strategies, and proposed new business strategies. Data collection techniques using observation and in-depth interviews as primary data, while secondary data with literature studies using books and journals related to principles of marketing, strategic marketing, and other topics. This research has limitations to the object being observed as many as two competitors who have a similar business model and interviewed 15 potential customers to explore their needs and desires regarding plus size clothing. The results of this research get findings on alternative business solutions for Longgar Outfit. The proposed business strategy for Longgar Outfit consists of a new STP strategy, create value proposition canvas, create a point of difference and point of parity, develop new marketing (4Ps) strategy, and organizational structure plan.

scholarly journals The Effect of Business Strategy, Leverage, Profitability and Sales Growth on Tax Avoidance

2019 ◽  
Vol 16 (2) ◽  
pp. 66
Author(s):  
Lidia Wahyuni ◽  
Robby Fahada ◽  
Billy Atmaja
Keyword(s):  
Business Strategy ◽  
Sampling Method ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Multiple Linear Regression Model ◽  
Secondary Data ◽  
Sampling Technique ◽  
Positive Influence ◽  
Sales Growth ◽  
Manufacturing Companies

This study aims to analyze the effect of business strategy, leverage, profitability and sales growth on tax avoidance. Sample companies involved in tax avoidance were obtained from surveys of manufacturing companies listed on the Indonesia Stock Exchange. The data covers a period of four years from 2014 to 2017. The sample used is secondary data originating from the IDX.com website with the sampling technique that is the purposive sampling method. Data analysis used is a multiple linear regression model. Based on the results of the analysis that has been done, it can be concluded as follows (1) Business strategy has a positive influence on tax avoidance (2) leverage has a positive influence on tax avoidance (3) profitability has no effect on tax avoidance (4) sales growth has an influence positive for tax avoidance

The effect of competition in the product market and financial flexibility on business strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vahab Rostami ◽  
Leyla Rezaei
Keyword(s):  
Organizational Performance ◽  
Business Strategy ◽  
Market Competition ◽  
Tax Avoidance ◽  
Product Market ◽  
Product Market Competition ◽  
Business Strategies ◽  
Financial Flexibility ◽  
Content Type ◽  
Independent Variable

Purpose This study aims to track product market competition and financial flexibility on firms’ business strategies. Design/methodology/approach For this purpose, 187 listed firms on the Tehran Stock Exchange were selected by the systematic elimination for 2012–2018. The hypotheses were examined using the linear regression model. Ittner and Larcker’s (1997) model assesses the business strategy (dependent variable). The Herfindahl–Hirschman index is used to assess the product market competition (independent variable). Finally, the Frank and Goyal’s (2009) model investigates financial flexibility (independent variable). Findings The findings indicate that competition in the product market has significantly declined the resort of defensive and invasive business strategies and intensified opportunistic analytical and opportunistic strategies, benefiting from financial flexibility and facilitating defensive and opportunistic adaptation and decreased analytic and invasive strategies. Besides, the product market competition contributes to the firm’s financial flexibility and analytical, opportunistic, invasive and defensive strategies. Most of the studies in the field of business strategy analyzed some factors, such as performance (Zhang, 2016), tax avoidance (Higgins et al., 2015) and share pricing risk (Habib and Hasan, 2017). There is no study to assess the effect of business strategy on product market competition and financial flexibility. Originality/value The present study’s findings provide some invaluable concepts for firm managers on the significance of competition in the product market and financial flexibility. Focusing on competition intensity and flexibility level can deal with the board’s ambiguities on market structure and competitive status. The use of profitably competitive investment opportunities leads to selecting the most beneficial strategies, leading to a more efficient allocation of scarce resources and, finally, the enhancement of organizational performance.

scholarly journals Analisis Strategi Bisnis untuk Mencapai Keunggulan Kompetitif di UMKM Nukida Jati Bojonegoro

2021 ◽  
Vol 7 (2) ◽  
pp. 117-126
Author(s):  
Ika Munawaroh ◽  
Elva Nuraina ◽  
Elly Astuti
Keyword(s):  
Business Strategy ◽  
Swot Analysis ◽  
Raw Materials ◽  
Secondary Data ◽  
Product Diversification ◽  
Business Strategies ◽  
Internal Factors ◽  
Calculation Results ◽  
Related Diversification ◽  
Market Opportunities

This study aims to identify business strategies implemented by MSMEs Nukida Jati to have a competitive advantage. The research method uses descriptive qualitative. Sources of data used are primary and secondary data sources. The technique of collecting data is the interview, observation, and documentation. Data analysis techniques used data reduction, presenting information data, and drawing conclusions. The calculation results of the IFE (internal factors) and EFE (external factors) matrices show that Nukida Jati MSMEs are in quadrant one. Combining these matrices in the SWOT analysis shows that the company's position allows it to maximize the opportunities and strengths. An alternative business strategy that can be applied to Nukida Jati MSMEs in this position is related diversification. This business strategy allows the company to produce various kinds of handicrafts with different specifications according to consumer demand with the same raw materials. Further product diversification can create wider market opportunities, especially if added with adequate digital marketing support

Dampak Perubahan Undang-Undang No. 36 Tahun 2008 terhadap Penerapan PPH Potong Pungut pada Perusahaan Jasa Cleaning Service (Studi Kasus pada PT. Jasa Mulia Iramandiri)

2010 ◽  
Vol 6 (02) ◽  
pp. 61
Author(s):  
Rizki Ahmad Fauzi
Keyword(s):  
Income Tax ◽  
Research Method ◽  
Secondary Data ◽  
Research Data ◽  
Financial Statement ◽  
Tax Law ◽  
History Of ◽  
Income Tax Law ◽  
The Law ◽  
The Impact

The introdution described about the history of income tax, the book observation concerning about the meaning of Tax and the chronological alteration of the Income Tax regulations. Research Method described the structure of PT. Jasamulia Iramandiri, along the literature using research data as a secondary data The comparison between the old Law on the new Act has some interesting differences to explore, also elucidate between Old law dan the New Law of Income Tax concerning PPh 21,23,and 25.  This discussion are simulate the calculation of Income Tax Law chapter 21 in two version the old and newest Law, also the impact of the Law alteration  to accounts on the financial statement.

nalysis of the Effect of Business Strategy and Financial Distress on Tax Avoidance

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Arja Sadjiarto ◽  
◽  
Sylvia Hartanto ◽  
Natalia . ◽  
Stephani Octaviana
Keyword(s):  
Financial Distress ◽  
Business Strategy ◽  
Tax Avoidance

scholarly journals Proposed Business Strategy for XYZ Consultant Company to Financial Improvement Through Acquisition Strategy

2021 ◽  
Vol 6 (2) ◽  
pp. 1-7
Author(s):  
Novi Fitriani ◽  
Deddy Priatmodjo Koesrindartoto
Keyword(s):  
Business Strategy ◽  
Implementation Strategies ◽  
Secondary Data ◽  
Added Value ◽  
Business Strategies ◽  
Z Score ◽  
Sustainable Business ◽  
Financial Ratio ◽  
Other Information ◽  
Acquisition Strategy

XYZ is a university with the best reputation in Indonesia which has 12 companies engaged in consulting services (construction and non-construction)). The proportion of ownership in this business varies from 20% to 99.99%. This business has several companies that are inefficient and unhealthy because operating costs are greater than revenue. In addition, in 2019, this consulting company experienced a decrease in revenue by 7.11% while the cost of goods sold increased by 7.45%. This study aims to select which companies have good and healthy performance, create new and effective business strategies for the best performing companies, and develop sustainable business and new competitive advantages. This research methodology is qualitative using secondary data in the form of annual financial reports from 12 companies for 2015-2019, websites and other information media. External analysis in this study using macroeconomics, PEST, Porter's Five Forces, and Benchmark Analysis. While the internal analysis uses Financial Ratio Analysis and Altman-Z Score. The tools used to obtain business solutions and strategies from the XYZ consulting firm case are Business Level Formulations, Business Level Strategies, Functional Strategies, and Implementation Strategies. One of the strategies that the author applies in this case is by implementing an acquisition strategy After analyzing and calculating using the Financial Ratio and Altman-Z Score of 12 companies, the result shows that there are only 7 companies that have good and healthy performance so that they are included in the "safe zone" category with a discriminant zone Z> 2.99. The acquisition strategy was created by combining these companies. The first step is to evaluate each company, then calculate the acquisition to find out the synergy value of the acquisition to compare the value when the acquisition was made and what was not. The calculation results show that the company's FCFF accumulation after the next 10 years on 2030, In the event of an acquisition is IDR 124,131,871,981.11. Meanwhile, if there is no acquisition is IDR 117,285,044,723.00. So that we know there have added value of the synergy IDR 6,846,827,258.11.

scholarly journals ANALISIS PENGHINDARAN PAJAK DENGAN PENDEKATAN FINANCIAL DISTRESS DAN PROFITABILITAS

2020 ◽  
Vol 4 (2) ◽  
pp. 262-276
Author(s):  
Indra Iman Sumantri ◽  
Donny Indradi
Keyword(s):  
Financial Distress ◽  
Quantitative Research ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Total Sample ◽  
Coefficient Of Determination ◽  
Significance Level ◽  
Quantitative Research Methods ◽  
Regression Test ◽  
Testing Tool

This study aims to analyze tax avoidance with a financial distress approach and profitability approach in consumer goods industry sector companies listed on the IDX in 2013-2017. This research uses quantitative research methods with secondary data obtained through intermediate media that has been processed and has been documented. The population in this study were forty-four companies after being selected using purposive sampling into as many as fourteen companies with five years of research so that the total sample was 70. This study used a hypothesis testing tool, namely multiple linear regression test, partial test (t test), the coefficient of determination, the correlation coefficient test, with a significance level of 5%. The result of this research is that financial distress has a negative and significant effect on tax avoidance. Profitability has no effect on tax avoidance.   Keywords : Financial Distress, Profitabilitas, Tax Avoidance

scholarly journals The role of business strategies, environmental uncertainty and decentralization as moderating the effect of management accounting systems on managerial performance

2019 ◽  
Vol 6 (3) ◽  
pp. 37-45
Author(s):  
Ni Ketut Ayuk Kesumawati ◽  
I.G.A. Made Asri Dwija Putri ◽  
A.A.N.B. Dwirandra
Keyword(s):  
Business Strategy ◽  
Management Accounting ◽  
Linear Regression Analysis ◽  
Environmental Uncertainty ◽  
Business Strategies ◽  
Primary Data ◽  
Accounting System ◽  
Managerial Performance ◽  
Travel Agent ◽  
Management Accounting System

The data of this research is primary data and data collection is done through a questionnaire. While the data analysis used include classical assumption test, linear regression analysis, and partial test. Based on the results of the research can be seen that (1) Management accounting system significant effect on managerial performance This means that with the application of an adequate accounting system will improve managerial performance in Travel Agent Services Company in Bali, (2) Business strategy moderate the influence of management accounting system on managerial performance, This means that the use of appropriate business strategies tend to be prospective, will play a role in strengthening the influence of the application of management accounting system to the managerial performance of Travel Agent Services Company in Bali, (3) Environmental uncertainty moderate the influence of management accounting system on managerial performance, meaning that environmental uncertainty will strengthen the influence implementation of management accounting system to managerial performance of Travel Agent Services Company in Bali, (4) Decentralization moderate the influence of management accounting system on managerial performance, It means that decentralization can strengthen the influence of application of system management accounting on managerial performance of Travel Agent Services Company in Bali.

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