Corporate Tax Planning and Financial Performance of Companies Listed in Colombo Stock Exchange (CSE)

2020 ◽  
Vol 3 (2) ◽  
pp. 1-15
Author(s):  
Dunusinghe Dharmarathna
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Tax Planning ◽  
Sri Lankan ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Return On Assets ◽  
Tax Rate

This study focuses on how best performing listed companies in CSE make strategies in tax planning to reduce tax liabilities without violating rules and regulations imposed by the Tax Authority. In this study, the corporate tax planning was measured by using the Effective Tax Rate (ETR) and the financial performance was measured by using Return on Assets (ROA). The sample of the study was designed based on criteria namely, the largest and most liquid companies in the Sri Lankan equity market and the sample period was restricted for the period 10 years from 2009-2018. The sample represents seventeen (17) companies which are used to calculate the S&P SL 20 index. Data was collected through the published annual reports of CSE of the selected listed companies during the selected financial time period. Co-integration regression along with Panel Dynamic Ordinary Least Squares (DOLS) statistical technique was used to explore this study. Johansen co-integration test confirmed to run the panel DOLS. According to the result of that, corporate tax planning has a negative impact on the financial performance of Sri Lankan best-performing companies listed in CSE however, which is not statistically significant at 5% level. It provides evidence that there is no significant impact from corporate tax planning strategies to the financial performance of listed companies in CSE. This evidence implies that Sri Lankan firms do not utilize the loopholes embedded in the Sri Lankan tax law efficiently. Keywords: Corporate Tax Planning, Colombo Stock Exchange, Co-integration regression, Effective Tax Rate, Financial Performance, Panel Dynamic Ordinary Least Squares, Return on Assets.

scholarly journals Ownership concentration and financial performance: the case of Sri Lankan listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 170-177 ◽  
Author(s):  
Chandrapala Pathirawasam ◽  
Guneratne Wickremasinghe
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Study Finding ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Performance Measure ◽  
Ownership Concentration ◽  
Sri Lankan ◽  
Endogenous Factors ◽  
The Impact

The purpose of this paper is to examine the impact of ownership concentration and the other endogenous factors on the financial performance of companies listed on the Colombo Stock Exchange. Both pooled and ordinary least squares regressions are used to analyze the data. The return on assets (ROA) is used as the performance measure. One study finding is that the ownership concentration within these listed companies does not have a statistically significant positive relationship with the ROA. However, the study indicates that firm size, quick ratio and ratio of inventory investment to total assets have positive impacts on the ROA. But the debt ratio is negatively related to the financial performance of the listed companies.

scholarly journals PENGARUH PROFITABILITAS, LEVERAGE DAN CORPORATE GOVERNANCE TERHADAP PERENCANAAN PAJAK PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2017

2019 ◽  
Vol 4 (1) ◽  
pp. 131
Author(s):  
Indah Rahmadini ◽  
Nita Erika Ariani
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate

This study aims to examine the effect of profitability, leverage, and corporate governance on tax planning. The independent variables used in this study are profitability, leverage, institutional ownership, managerial ownership, independent commissioners and audit committees. While the dependent variable in this study is tax planning.Tax planning in this study the measured of Cash Effective Tax Rate (CETR). The population in this study are manufacturing companies listed on Indonesian Stock Exchange (BEI) in the period 2014-2017. Determination of samples in this study using purposive sampling method. There are 45 manufacturing companies listed on BEI used as research samples based on predetermined criteria. The results showed that profitability, leverage, managerial ownership, independent commissioners and audit committees had a significant effect on tax planning. Meanwhile institutional ownership has no significant effect on tax planning

scholarly journals Does Corporate Social Responsibility Influence Corporate Tax Avoidance of Chinese Listed Companies?

2018 ◽  
Vol 10 (12) ◽  
pp. 4549 ◽  
Author(s):  
M.A. Gulzar ◽  
Jacob Cherian ◽  
Muhammad Sial ◽  
Alina Badulescu ◽  
Phung Thu ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Primary Objective ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Chinese Listed Companies ◽  
Corporate Social

The primary objective of this paper is to empirically examine whether corporate social responsibility (CSR) influences corporate tax avoidance (CTA) of Chinese listed companies. The study is based on a sample of 3481 firm-year observations from 2009 to 2015 using CSR ratings from the Rankins (RKS) corporate social responsibility ratings agency in China, and all financial data extracted from the China Stock Market and Accounting Research (CSMAR). The authors foundthat CSR is negatively related to the current and cash effective tax rate (proxies of corporate tax avoidance), suggesting that responsible firms are more involved in tax avoidance as compared to less responsible firms. Their findings are robust against different control variables. Additionally, to the best of the authors’ knowledge, the paper is one of the first to document an empirical association between CSR and corporate tax avoidance of Chinese listed companies.

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.

scholarly journals The Effect of Corporate Tax Planning On Firm Value

2019 ◽  
Vol 4 (1) ◽  
pp. 01-04
Author(s):  
Silvy Christina
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Jel Classification ◽  
Tax Planning ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Negative Effect ◽  
Tax Savings ◽  
The Relationship

Objective - This research aims to empirically examine the effect of tax planning on firm value. The population of this research consists of manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2014 to 2016. Methodology/Technique - This research uses 3 recent years and uses variables not used in previous research. The 43 respondents were chosen using purposive sampling. The hypotheses were tested using multiple regressions with Eviews program to determine the relationship between each independent variable to firm value. Findings - The empirical results show that tax planning that is measured by the cash effective tax rate has a negative effect on firm value, while tax planning measured by effective cash rate and tax savings has no effect on firm value. Novelty - The study recommends the need for firms to institute more robust tax planning practices that will help reduce their effective tax liabilities and therefore improve their overall value. Firms that engage in better tax planning practices are likely to get higher firm value. Type of Paper Empirical. Keywords: Firm Performance; Tax Planning; Effective Tax Rate; Cash Effective Tax Rate; Tax Saving. JEL Classification: M40, M42, M49. DOI: https://doi.org/10.35609/afr.2019.4.1(1)

scholarly journals MANAJEMEN LABA DAN PERENCANAAN PAJAK SEBAGAI SUMBER LARGE POSITIVE BOOK-TAX DIFFERENCES TERHADAP PERSISTENSI LABA

2018 ◽  
Vol 10 (2) ◽  
Author(s):  
Liean Winata Merrysa ◽  
Nurul Aisyah Rachmawati
Keyword(s):  
Panel Data ◽  
Earnings Management ◽  
Stock Exchange ◽  
Tax Planning ◽  
Least Square ◽  
Earnings Persistence ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate

<p><em>This study replicates Blaylocket al. (2012). Through this research, the writer wanted to analyze the influence of earnings management and tax planning as source of Large Positive Book-Tax Differences (LPBTD) to earnings persistence. This research uses panel data of manufacturing companies listed on Indonesia Stock Exchange for the period of research year 2012-2013. The data is analyzed with Pooled Least Square. Unfortunately, the authors can not prove that earnings management as a source of LPBTD can weaken earnings persistence. The result of earnings persistence estimation is exactly the opposite. This condition may occur because the action of earnings management by managers is viewed in terms of efficiency contracting perspective. In addition, the authors also can not prove that tax planning as a source of LPBTD strengthens the profit persistence. According to Blaylock et al. (2012), this happens because the measurement of cash effective tax rate can not be reviewed only with period of 5 (five) years.</em></p><em>Keywords:Persistensi profit, profit management, tax planning, Large positive book-tax differences</em>

scholarly journals Tax Planning Trends on Indonesia Stock Exchange Listed Firms

2020 ◽  
Vol 55 (4) ◽  
Author(s):  
Titiek Puji Astuti ◽  
Rahmawati Rahmawati ◽  
Bandi Bandi ◽  
Ari Kuncara Widagdo
Keyword(s):  
Government Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Total Sample ◽  
Tax Planning ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Listed Firms

This paper aims to discover the trend of firms practicing tax planning in Indonesia. This descriptive paper aims to understand the trend of Indonesia Stock Exchange listed firms practice of tax planning. The paper uses secondary data from financial statements. The measurement of tax planning uses the formula (25%-ETR (effective tax rate))*PBT (profit before tax). The sample is Indonesia Stock Exchange listed firms from 2011-2016, with tax as 25%. The sample excludes firms in some industries: financial, agriculture, construction, and mining. The total sample used in this paper is 212 firms. The results of this paper generally indicate the decrement of the tax planning rate, which means the existing government policy to decrease tax planning among the firms located in Indonesia.

scholarly journals ANALISIS PENGARUH CAPITAL INTENSITY, KEPEMILIKAN INSTITUSIONAL, DEBT TO ASSET RATIO (DAR) DAN RETURN ON ASSETS (ROA) TERHADAP EFFECTIVE TAX RATE (ETR) PADA PERUSAHAAN SEKTOR PROPERTI UTAMA YANG TERDAFTAR DI BEI PERIODE 2016 -2019

2021 ◽  
Vol 8 (1) ◽  
pp. 1-21
Author(s):  
Chytia Chytia ◽  
Bayu Laksma Pradana
Keyword(s):  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Capital Intensity ◽  
Total Sample ◽  
Coefficient Of Determination ◽  
Effective Tax Rate ◽  
Return On Assets ◽  
Financial Reports ◽  
Tax Rate

The purpose of this study was to determine the effect of capital intensity, institutional ownership, debt to asset ratio (DAR), and return on assets (ROA) on the effective tax rate (ETR). This study uses secondary data in the form of financial reports that have been audited by auditors, where this data is obtained from the official website of the Indonesia Stock Exchange (idx.co.id). Testing in this study was assisted by using the SPSS 25 program by using multiple linear regression analysis hypothesis testing. The sample technique used in this research is purposive sampling method. The criteria taken by the author in this study are companies engaged in the property sector and have complete financial reports for 4 (four) years, from 2016-2019. The sample taken is 25 property companies for 4 years, which means that it has a total sample of 100 companies. From the existing sample, the classical assumption test was carried out consisting of the normality test, autocorrelation test, multicollinearity test, and heteroscedasticity test along with the regression coefficient similarity test consisting of the t test, F test, and the coefficient of determination (R2) test.

scholarly journals ANALISIS FAKTOR YANG MEMPENGARUHI PERENCANAAN PAJAK PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

account ◽  
2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Fauziyah Fitriyanti Rachayu ◽  
Sabar Warsini ◽  
Sylvia Rozza
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Tax Planning ◽  
Coefficient Of Determination ◽  
Panel Regression ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Negative Effect ◽  
A Company ◽  
Positive Effect

ANALISIS FAKTOR YANG MEMPENGARUHI PERENCANAAN PAJAK PADA PERUSAHAAN MANUFAKTURYANG TERDAFTAR DI BURSA EFEK INDONESIA Fauziyah Fitriyanti Rachayu [email protected] Sabar Warsini [email protected] Sylvia Rozza [email protected]  ABSTRACTThis research aims to  examine and analyse factors  that are affecting  tax planning oncompanies using effective tax rate as the indicator. The said factors are firm size, leverage, inventory intensity, profitability, and foreign income of a company. The sample of this study were 47 listedmanufacturing companies in Indonesia Stock Exchange (BEI) from the year 2014 to 2018. The tools used in this analysis were data panel regression, t test, F test, and the coefficient of determination. The result of this study shows that partially, firm size and profitability have positive effect on tax planning, while leverage and foreign income have negative effect. On the other hand, the result of this study also shows that inventory intensity doesn’t have any significant effect on tax planning. Moreover, the result of this study shows that the said factors simultaneously affected tax planning. Keywords: Tax Planning, Firm Size, Leverage, Inventory Intensity, Profitability, Foreign Income ABSTRAKPenelitian   ini   menguji   dan   menganalisis   faktor-faktor   yang   dapat   mempengaruhiperencanaan pajak perusahaan dengan indikator tarif pajak efektif. Faktor-faktor yang dimaksudadalah ukuran perusahaan, tingkat utang, intensitas persediaan, tingkat profitabilitas, serta pendapatan luar negeri suatu perusahaan. Sampel pada penelitian ini adalah 47 perusahaan manufaktur yang terdaftar pada Bursa Efek Indonesia pada tahun 2014-2018. Alat analisis yang digunakan adalah regresi data panel, uji t, uji f dan koefisien determinasi. Hasil penelitian menunjukkan bahwa secara parsial ukuran perusahaan dan tingkat profitabilitas perusahaan memiliki pengaruh signifikan positif terhadap perencanaan pajak, sedangkan tingkat utang dan pendapatan luar negeri memiliki pengaruh signifikan negatif terhadap perencanaan pajak perusahaan. Di sisi lain, hasil penelitian menunjukkan bahwa intensitas persediaan tidak memiliki pengaruh yang signifikan terhadap perencanaan pajak. Selain itu, hasil penelitian juga menunjukkan bahwa faktor-faktor tersebut berpengaruh secara simultan. Kata kunci: Perencanaan Pajak, Ukuran Perusahaan, Tingkat Utang, Intensitas Persediaan, TingkatProfitabilitas, Pendapatan Luar Negeri 

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.

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