Can effective tax rates mediate the effect of profitability and debts on income smoothing?

Savitri, Enni

doi:10.21511/ppm.17(3).2019.07

Cited by 6 publications

(21 citation statements)

References 17 publications

(26 reference statements)

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“…Effective tax rates merupakan jumlah tarif riil pajak yang dibayar oleh perusahaan. Effective tax rates menunjukkan seberapa besar beban pajak yang harus dibayar oleh perusahaan kepada pemerintah melalui pemanfaatan ketentuan perpajakan yang ada (Savitri, 2019). Effective tax rates memiliki definisi sebagai nilai efektif yang menunjukkan seberapa besar beban pajak yang harus dibayar oleh perusahaan kepada pemerintah melalui pemanfaatan ketentuan perpajakan yang ada.…”

Section: Kajian Teoriunclassified

“…Profitability dengan Effective Tax Rates. Savitri (2019) menemukan profitability berpengaruh negatif terhadap effective tax rates. Hal ini disebabkan karena apabila tingkat profitabilitas suatu perusahaan tergolong tinggi, maka manajer akan berusaha untuk memanfaatkan fasilitas perpajakan yang ada sehingga pembayaran pajak perusahaan pun dapat diefisiensikan.…”

Section: Kaitan Antar Variabelunclassified

“…Leverage dengan Income Smoothing. Savitri (2019) menemukan bahwa leverage berpengaruh positif terhadap income smoothing. Hal ini disebabkan karena perusahaan yang memiliki tingkat leverage yang tinggi memiliki kecenderungan untuk mengalami gagal bayar yang pada akhirnya mendorong pihak manajemen dari perusahaan untuk melakukan praktik income smoothing agar dapat memberikan informasi kepada para kreditur bahwa kondisi perusahaan masih berjalan dengan baik sehingga dapat meyakinkan pihak kreditur bahwa pembayaran utang masih dapat terpenuhi.…”

Section: Kaitan Antar Variabelunclassified

“…Effective Tax Rates dengan Income Smoothing. Savitri (2019) menemukan effective tax rates berpengaruh positif terhadap income smoothing. Hal ini dikarenakan keinginan dari pihak perusahaan untuk membayar pajak dengan nilai seminimal mungkin.…”

Section: Kaitan Antar Variabelunclassified

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Faktor-Faktor Yang Memengaruhi Income Smoothing Dengan Mediasi Effective Tax Rates

Clarissa

Dewi

2022

JPA

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The purpose of this research is to obtain empirical evidence about the effect of profitability, leverage and institutional ownership on income smoothing with effective tax rates as mediating variable. The sample used in this research is 35 property, real estate and building construction companies from a total population of 56 companies listed consistently on Indonesia Stock Exchange in 2017-2019. The side technique used is purposive sampling and the valid data was 35 companies. This study uses Structural Equation Model (SEM) which was helped by Smart PLS 3.0. The results showed that institutional ownership has a positive effect on income smoothing, leverage has a positive effect on effective tax rates, profitability has a negative effect on effective tax rates, while profitability, leverage and effective tax rates has no effect on income smoothing. Also, effective tax rates have no effect on mediate profitability and leverage through income smoothing. The implication of this research is the need to increase cautiousness of stakeholders in reading financial reports due to the possibility of income smoothing which could lead into inaccurate decisions.

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Section: Kajian Teoriunclassified

Section: Kaitan Antar Variabelunclassified

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Faktor-Faktor Yang Memengaruhi Income Smoothing Dengan Mediasi Effective Tax Rates

Clarissa

Dewi

2022

JPA

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“…Income smoothing is a dimension of the accounts manipulation theme that has been attracting great attention in the accounting literature. A goal of manipulation widely ascribed to managers is the desire to smooth (Savitri, 2019).…”

Section: Introductionmentioning

confidence: 99%

Investigating Income Smoothing: Empirical Evidence From Serbian’s Hotel Companies

Obradović¹,

Rupić²,

Rupić³

et al. 2020

International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era

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The flexibility in accounting standards and principles, lead to incentives for managers to show a good picture of the companies. It is logical and rational for managers to attempt to smooth income by using certain accounting devices to reduce the companies’ income fluctuation over time to improve relations with creditors, investors, and employees. Income smoothing enables companies to stabilize earnings and thereby increase earnings predictability. For detecting income smoothing through examining the financial statements Eckel’s (1981) approach (income variability approach) has been the most popular and most used one. In this research study, we use a selection criterion between smoothers and non-smoothers hotel companies based on the income smoothing. This study aims to classify Serbian hotel companies during the period 2016-2019 as smoothing and non-smoothing hotel companies. The method used to determine the presence or absence of income smoothing and the company value results is based on the coefficient of variation model proposed by Eckel (1981). According to the coefficient of variation method, the more the income smoothing (IS) index tends to zero, the more smoothed out the company’s earnings are. This study examines the presence of artificial income smoothing in 22 Serbian hotel companies. A binomial test is used to test the hypothesis. As a result of research, there are no significant statistical indicators of income smoothing practices in Serbian hotel companies during the period 2016-2019.

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The Impact of Profitability and Leverage on Tax Aggressiveness With Income Smoothing as the Mediator

Alfandia

2024

BAKI

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Information asymmetry and differences in interests between agents and principals are unavoidable problems in agency relationships. Agents with better information than other parties try to maximize their benefits by managing or manipulating reported accounting numbers. Profitability and leverage are common considerations for companies in carrying out income smoothing so that profits are stable and the company looks in good condition in the eyes of stakeholders. In addition, it is also related to the size of the corporate tax burden, so both can be factors that influence the level of corporate tax aggressiveness. This study aims to analyze the direct and indirect effects of profitability and leverage on tax aggressiveness and test the mediation of income smoothing on the effect of profitability and leverage on tax aggressiveness. The research sample was determined using a purposive sampling technique of 26 consumer non-cyclical sector companies listed on the Indonesia Stock Exchange in 2018-2020. Data were analyzed using the WarpPLS 7.0 analysis tool. The results of this study show that profitability and leverage affect tax aggressiveness. However, income smoothing does not affect tax aggressiveness. Income smoothing could not mediate the effect of profitability and leverage on tax aggressiveness. There is no indirect effect between profitability and leverage on tax aggressiveness.

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Can effective tax rates mediate the effect of profitability and debts on income smoothing?

Cited by 6 publications

References 17 publications

Faktor-Faktor Yang Memengaruhi Income Smoothing Dengan Mediasi Effective Tax Rates

Faktor-Faktor Yang Memengaruhi Income Smoothing Dengan Mediasi Effective Tax Rates

Investigating Income Smoothing: Empirical Evidence From Serbian’s Hotel Companies

The Impact of Profitability and Leverage on Tax Aggressiveness With Income Smoothing as the Mediator

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