scholarly journals Analisis Pengaruh Upaya Penghindaran Pajak terhadap Biaya Ekuitas pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 56
Author(s):  
Budi Harsono ◽  
Basten Roberto Halim
Keyword(s):  
Information Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Cost Of Equity ◽  
Measurement Models ◽  
Equity Cost ◽  
Cost Measurement ◽  
Avoidance Measures ◽  
The Cost ◽  
Relationship Of

The purpose of this research analysis study is to explain and introduce what are the effects of tax avoidance measures on the financial costs of a company. This research was conducted using a sample of company data registered in the Indonesia Stock Exchange in the period 2013 to 2017. The sample used was 145 companies after being excluded companies that have the effect of avoiding negative taxes and financial statements that are incomplete or do not meet the criteria.  The results show no significant relationship between tax avoidance with the cost of equity. Research also includes moderation variables to strengthen the relationship of tax avoidance to the cost of equity. The variable of marginal moderation of incentives, outside party supervision and information quality are proven to have an effect of increasing the effect of tax avoidance on the cost of corporate equity. This shows that there are many factors that affect the cost of equity in addition to tax avoidance. The measurement of equity costs used by CAPM is one of the equity cost measurement models that can be applied in Indonesia. So the results of these studies produce unfavorable regression results on tax avoidance efforts as measured by ETR. The results of this study only focus on Indonesia, which can only provide information benefits for Indonesian companies.

scholarly journals The Effect of Corporate Tax Avoidance on the Cost of Equity

2016 ◽  
Vol 91 (6) ◽  
pp. 1647-1670 ◽  
Author(s):  
Beng Wee Goh ◽  
Jimmy Lee ◽  
Chee Yeow Lim ◽  
Terry Shevlin
Keyword(s):  
Information Quality ◽  
Tax Avoidance ◽  
Cash Flows ◽  
Equity Capital ◽  
Testable Hypothesis ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Corporate Tax ◽  
Long Run ◽  
The Cost

ABSTRACT Based on Lambert, Leuz, and Verrecchia's (2007) derivation of the cost of equity capital in terms of expected cash flows, we generate a testable hypothesis that relates tax avoidance to a firm's cost of equity capital. Using three broad measures of tax avoidance—book-tax differences, permanent book-tax differences, and long-run cash effective tax rates—to test our hypothesis, we find that the cost of equity is lower for tax-avoiding firms. This effect is stronger for firms with better outside monitoring, firms that likely realize higher marginal benefits from tax savings, and firms with higher information quality. Overall, our results suggest that equity investors generally require a lower expected rate of return due to the positive cash flow effects of corporate tax avoidance. JEL Classifications: G32; H26; M41.

scholarly journals The Effect of Disclosure and Earnings Quality on the Cost of Equity in Indonesia

2019 ◽  
Vol 6 (2) ◽  
pp. 42
Author(s):  
Yossy Octa Dewanti
Keyword(s):  
Data Analysis ◽  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Sample Selection ◽  
Selection Method ◽  
Cost Of Equity ◽  
The Cost ◽  
Relationship Of ◽  
The Relationship

This study aims to examine the effect of disclosure and earnings quality on the cost of equity. The theory used to explain the relationship of each variable in this study is agency theory and signal theory. The population used in this study is a manufacturing company listed on the Indonesia Stock Exchange for the period 2013-2017. The sample selection method used is the purposive sampling method and produced 87 companies as samples. Data analysis in this study used E-Views (Econometric Views). The results of this study succeeded in proving that the higher the disclosure and earnings quality can reduce the cost of equity.

Does Financial Crisis Affect the Cost of Equity Estimation? Evidence from the Tunisian Stock Exchange

2017 ◽  
Vol 7 (2) ◽  
pp. 491
Author(s):  
Kouki Mondher ◽  
Abderrazek Elkhaldi ◽  
Wided Bouani
Keyword(s):  
Financial Crisis ◽  
Cost Estimation ◽  
Factor Model ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Cost Of Equity ◽  
Momentum Effect ◽  
Equity Cost ◽  
The Cost ◽  
The Impact

The aim of this paper is to study the impact of the recent financial crisis on equity cost estimation. We use a data of a 22 firms listed in the Tunisian stock market during the period from July 2006 to June 2011. The choice of this period is motivated by the occurrence of the financial crisis of October 2008, which divides the period into two equal sub-periods. In the first stage, we make abstraction to the crisis impact and we run the three specifications of the cost of equity: the CAPM, the Fama -French three factor model and The Carhart four-factor model. Empirical results confirm the explanatory power of the three specifications in the context of the Tunisian market. We also confirm the existence of a size effect, a book to market effect and a momentum effect. In the second stage, we show that the presence of financial crisis does not affect the cost of equity. However, we note a decrease in the coefficients of the explanatory variable after introducing the dummy crisis variable.

scholarly journals The Effects of Tax Avoidance, Accrual Earnings Management, Real Earnings Management, and Capital Intensity on the Cost of Equity

2018 ◽  
Vol 10 (1) ◽  
pp. 40-50
Author(s):  
Amrie Firmansyah ◽  
Ahmad Sigid Febriyanto
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Multiple Linear Regression Model ◽  
Sampling Technique ◽  
Capital Intensity ◽  
Real Earnings Management ◽  
Cost Of Equity ◽  
Management Actions ◽  
The Cost

This study aims to examine the effects of tax avoidance, accrual profit management, real profit management, and capital intensity on equity costs. The population of this study is a manufacturing company listed on the Indonesia Stock Exchange which amounted to 146 companies. The sampling technique used was purposive sampling and resulted in 420 units of analysis. This type of research is quantitative causality by performing hypothesis testing analysis is done by using multiple linear regression model. The findings of this research are tax avoidance will add to the risks that must be borne by investors thus increasing uncertainty over their investment. Investors consider that accrual profit management actions are opportunistic as risk-taking actions as well as real profit management actions. While on Capital Intensity, investors assume the information on the company’s fixed assets is not useful in making investment decisions. The conclusions that can be taken are tax avoidance, accrual profit management, and earnings management real positive to the cost of equity. However, capital intensity has a negative effect.

scholarly journals Risk Disclosure and Cost of Equity: A Bayesian Approach

Revista CEA ◽  
2020 ◽  
Vol 6 (11) ◽  
pp. 25-43
Author(s):  
Jose Miguel Tirado-Beltrán ◽  
José David Cabedo ◽  
Dennis Esther Muñoz-Ramírez
Keyword(s):  
Information Disclosure ◽  
Stock Exchange ◽  
Risk Information ◽  
Financial Risks ◽  
Risk Disclosure ◽  
Cost Of Equity ◽  
Global View ◽  
Bayesian Linear Regression ◽  
The Cost ◽  
The Relationship

This paper aims to analyze the relationship between risk information disclosure and the cost of equity of companies in the Spanish capital market. This study uses a set of 71 firms listed on Madrid stock exchange between 2010 and 2015; all of them are non-financial listed companies for which profit forecasts existed. The problem was analyzed using a Bayesian linear regression approach. The results show that cost of equity and disclosed risk information are not related if a global view of the latter is adopted. However, a positive relationship between financial risks and the cost of equity occurs when risk information is divided into financial and non-financial risks.

scholarly journals Market value calculation and the solution of circularity between value and the weighted average cost of capital WACC

2009 ◽  
Vol 10 (6) ◽  
pp. 101-131 ◽  
Author(s):  
Ignacio Vélez-Pareja ◽  
Joseph Tham
Keyword(s):  
Average Cost ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Cost Of Debt ◽  
Cost Of Equity ◽  
Tax Rate ◽  
Market Values ◽  
Equity Cost ◽  
Tax Payments ◽  
The Cost

Most finance textbooks present the Weighted Average Cost of Capital (WACC) calculation as: WACC = Kd×(1-T)×D% + Ke×E%, where Kd is the cost of debt before taxes, T is the tax rate, D% is the percentage of debt on total value, Ke is the cost of equity and E% is the percentage of equity on total value. All of them precise (but not with enough emphasis) that the values to calculate D% y E% are market values. Although they devote special space and thought to calculate Kd and Ke, little effort is made to the correct calculation of market values. This means that there are several points that are not sufficiently dealt with: Market values, location in time, occurrence of tax payments, WACC changes in time and the circularity in calculating WACC. The purpose of this note is to clear up these ideas, solve the circularity problem and emphasize in some ideas that usually are looked over. Also, some suggestions are presented on how to calculate, or estimate, the equity cost of capital.

Mediators Linking Information Quality and the Cost of Equity Capital*

2020 ◽  
Vol 49 (3) ◽  
pp. 410-437
Author(s):  
Seong Mi Bae ◽  
Hyoung‐Tae An ◽  
Jong Dae Kim
Keyword(s):  
Information Quality ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost

scholarly journals PENGARUH PENGHINDARAN PAJAK TERHADAP BIAYA HUTANG DAN KEPEMILIKAN INSTITUSIONAL SEBAGAI PEMODERASI

2019 ◽  
Vol 21 (1) ◽  
pp. 47-60
Author(s):  
FAHREZA UTAMA ◽  
DWI JAYA KIRANA ◽  
KORNEL SITANGGANG
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Cost Of Debt ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Section Data ◽  
The Cost ◽  
The Relationship

The aim of this study is to test the influence of tax avoidance towards the cost of debt moderated by institutional ownership. In this research, tax avoidance measured by proxy of Book Tax Different (BTD) and Cash Effective Tax Rate (CETR). The population in this research is manufacturing firms that listed on Indonesia Stock Exchange (IDX) with 2015-2017 time periods. The amount of sample before outlier is 198 datas collected with purposive sampling method, then the amount of sample after outlier is 187 datas for first model and 186 datas for second model. Cross section data is used in this research. Multiple linear regression, determination coefficients, and partial test (t-test) is used with some help of programming data using SPSS (Statistical Product and Service Solution) 23th version to analize in this research. The result of this study indicate tax avoidance has not significant influence towards the cost of debt, and institutional ownership can’t moderate the relationship between tax avoidance and the cost of debt.

scholarly journals PENGARUH PENGHINDARAN PAJAK, KEPEMILIKAN INSTITUSIONAL, DAN PROFITABILITAS TERHADAP BIAYA HUTANG (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Periode 2011-2015)

2019 ◽  
Vol 7 (1) ◽  
pp. 58-69
Author(s):  
Elvis Nopriyanti Sherly ◽  
Desi Fitria
Keyword(s):  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Cost Of Debt ◽  
Effective Tax Rate ◽  
Return On Assets ◽  
Tax Rate ◽  
Negative Effect ◽  
Internal Funds ◽  
The Cost

The purpose of this study is to prove the effect of tax avoidance, institutional ownership, and profitability on cost of debt. The sample consisted of 71 manufactured firms in listed in Indonesian Stock Exchange from 2011-2015 by using a purposive sampling method. The results of the study showed that the tax avoidance had negative effect on cost of debt. The meaning is getting smaller Cash Effective Tax Rate the cost of debt incurred greater. The results of this study also showed that the institutional ownership doesn’t had effect on cost of debt. Furthermore, the result of Return on Assets (ROA) as proxy profitability had a negative effect on cost of debt. The meaning that the higher the profitability of the company then the company will have a high internal funds that can be used in making the use of debt financing is getting smaller which causes the cost of debt also becomes smaller.

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