The purpose of this study is to examine the effect of book-tax conformity level on the relationship between tax reporting aggressiveness and financial reporting aggressiveness. Different from Frank et al. (2009) and Lennox et al. (2013), this study considers endogeneity problem to minimize biased results. Using the companies listed on the Indonesia Stock Exchange for 2013-2016, this study found that there is endogeneity problem in the relationship between tax reporting aggressiveness and financial reporting aggressiveness, but no causality relationship. In this case, only tax reporting aggressiveness that affects financial reporting aggressiveness, but not otherwise. Consistent with the hypothesis, this study also found that firm with a low level of BTC is more weakened trade-offs between tax reporting aggressiveness and financial reporting aggressiveness than firm with high level of BTC. These results are consistent either with or without include the industry dummy. The purpose of this study is to examine the effect of book-tax conformity level on the relationship between tax reporting aggressiveness and financial reporting aggressiveness. Different from Frank et al. (2009) and Lennox et al. (2013), this study considers endogeneity problem to minimize biased results. Using the companies listed on the Indonesia Stock Exchange for 2013-2016, this study found that there is endogeneity problem in the relationship between tax reporting aggressiveness and financial reporting aggressiveness, but no causality relationship. In this case, only tax reporting aggressiveness that affects financial reporting aggressiveness, but not otherwise. Consistent with the hypothesis, this study also found that firm with a low level of BTC is more weakened trade-offs between tax reporting aggressiveness and financial reporting aggressiveness than firm with high level of BTC. These results are consistent either with or without include the industry dummy.JEL Classification: M41, K34.

No abstract

The purpose of this study is to analyze the effect of Large Positive Abnormal Book-Tax Differences (LPABTD) on earnings persistence and accruals persistence. This study used unbalanced panel data of listed companies in Indonesia Stock Exchange from 2006-2011. It is hypothesized that firms with LPABTD exhibit lower earnings and accruals persistence than other firms with Large Positive Normal Book-Tax Differences (LPNBTD). The results provide evidence which is consistent with the hypotheses. It is shown that firms with LPABTD exhibit lower earnings quality than other firms with LPNBTD.

This research is testing whether tax expense and institutional ownership have an influence on the amount of Related Party Transactions (RPT) both related to sales and expense (RPTSE). The population in this research is manufacturing companies listed on the Indonesia Stock Exchange with a total sample of 174 out of 58 manufacturing companies with research period in 2016-2018. By using panel data regression analysis, the results showed indicate that the tax expense of the previous year has a significant positive effect on the amount of related party transactions related to sales and expenses (RPTSE). This shows that the tax expense can encourage companies to conduct related party transactions in the following year. Meanwhile, institutional variables do not have a significant effect on related party transactions related to sales and expense (RPTSE).Practically, related party transactions are relatively complex, so that institutional ownership does not guarantee tomonitor of these transactions.

Tax aggressiveness is an action taken by a company in reducing taxable income through tax planning, either legally done by tax avoidance or illegally by tax evasion. This study examines the effect of financial constraints and institutional ownership on tax aggressiveness.The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2018. The sampling method used in this research is purposive sampling, with this method companies that meet as many as 56 companies. The analytical tool used is classic assumption test, multiple linear regression test, model test and hypothesis test. The results of this study indicate that (1) financial constraints have a positive effect on tax aggressiveness, (2) institutional ownership has a positive effect on tax aggressiveness, (3) institutional ownership weakens the relationship between financial constraints and tax aggressiveness.