Corporate Governance and Tax Avoidance: Evidence from Governance Reform

Kerr, Jon N.; Price, Richard A.; Román, Francisco J.; Romney, Miles A.

doi:10.2139/ssrn.3861965

Cited by 7 publications

(12 citation statements)

References 33 publications

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“…The hypothesis will be accepted Based on the results of the hypothesis testing, corporate governance does not influence tax aggressiveness (H1 is rejected). This finding is different from the finding of Kerr et al (2021), that corporate governance is able to minimize tax aggressiveness, but is consistent with the finding of Apriliyana & Suryarini (2019) and Syamsuddin et al (2020), that corporate governance is not able to minimize tax aggressiveness. Further, the results of this study do not support the application of corporate governance to reduce agency conflicts from the perspective of Agency Theory.…”

Section: Resultscontrasting

confidence: 73%

“…This conflict can be explained through the Agency Theory, especially type III (Pratiwi, Subekti, & Rahman, 2019). Previous studies have shown that tax aggressiveness can be influenced by diversification of company types (Zheng, 2017), incentive pay for executives (Huang, Ying, & Shen, 2018), company characteristics (K. S. Dewi & Yasa, 2020), political connection (Putra & Suhardianto, 2020), company's ownership structure (Bimo, Prasetyo, & Susilandari, 2019), and corporate governance (Kerr, Price, Roman, & Romney, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Corporate governance is defined by the Organization for Economic Cooperation and Development (OECD) as procedures and processes related to the implementation and supervision of companies that involve various stakeholders (OECD, 2015). The implementation of corporate governance through supervision by all stakeholders is believed to encourage companies to be more compliant with tax regulations or prevent them from carrying out tax aggressiveness (Kerr et al, 2021). The results of other studies are in fact different; corporate governance cannot minimize tax aggressiveness (Syamsuddin, Ali, & Sobarsyah, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Agency conflict within companies is believed to be minimized by the implementation of good corporate governance, which helps improve the mechanism of supervision by internal and external parties as well as by the government (Ararat, Claessens, & Yurtoglu, 2021;Kim, Kim, Kim, & Byun, 2010). Optimal supervision of corporate governance is expected to reduce tax aggressiveness (Chan, Mo, & Zhou, 2013;Kerr et al, 2021). Therefore, the following hypothesis was formulated.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance, Political Connection, Family Ownership and Tax Aggressiveness in Indonesia

Setyastrini

Subekti

Prastiwi

2022

Jurnal Ilmiah Akuntansi dan Bisnis

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Tax aggressiveness is a strategy of companies to present lower taxable earnings through tax planning without being accused of committing tax fraud, hence considered as one of the weaknesses of the self-assessment system. The purpose of this study was to examine and analyze the effect of corporate governance and political connection on tax aggressiveness with family ownership as the moderator. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2020. Using purposive sampling method, 49 companies were selected as the sample, resulting in 245 observations. The data were analyzed using multiple regression analysis and moderated regression analysis. This study found that corporate governance does not influence tax aggressiveness, that political connection has a negative effect on tax aggressiveness, and that family ownership does not moderate the influence of corporate governance and political connection on tax aggressiveness. Keywords: tax aggressiveness, corporate governance, political connection, family ownership

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Section: Resultscontrasting

confidence: 73%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corporate Governance, Political Connection, Family Ownership and Tax Aggressiveness in Indonesia

Setyastrini

Subekti

Prastiwi

2022

Jurnal Ilmiah Akuntansi dan Bisnis

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“…Komite audit juga merupakan faktor yang mempengaruhi penghindaran pajak karena berperan sebagai pengawas proses laporan keuangan yang bertujuan untuk mewujudkan laporan keuangan yang disurun melalui proses pemeriksaan dengan intergritas dan objektifitas dari auditor, serta berperan untuk memastikan bahwa laporan yang dibuat sudah mencerminkan posisi laporan keuangan yang sesungguhnya (Kerr, Price, & Roman, 2016) Rinaldi, 2015).…”

Section: Pendahuluanunclassified

Penghindaran Pajak Pada Bank Umum : Dipengaruhi Oleh Karakter Eksekutif, Kualitas Audit, Komite Audit, Kompensasi Rugi Fiskal, Dan Return on Assets

Putri

2020

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The purpose of this research is to determine the effect of the executive character, the quality of audit, audit committee, fiscal lost compensation, and return on assets towards tac avoidance. The researcher used executive character, quality of audit, audit committee, fiscal lost compensation, and return on assets as the independent variables that are estimated affect the dependent variable (tax avoidance) that is represented through Cash Effective Tax Rate (CETR). This research was conducted at banking company that has already registered in BEI during 2015-2019. This research using a secondary data and used purposive sampling method so that researcher got 21 banks as the sample and 98 observation after the outlier. The result of this research shows that executive character gave a significant negative impact to tax avoidance. Meanwhile, the fiscal lost compensation gave a significant positive towards tax avoidance. Furthermore, the audit quality, audit committee, and return on assets do not affect to the tax avoidance.

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Family ownership and corporate tax aggressiveness: The moderating effect of independent commissioner

Herawati

Rahmawati

Bandi

et al. 2021

JGR

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The family firm literature has found that 73% of empirical studies focus on American and European family firms (De Massis, Sharma, Chua, & Chrisman, 2012). De Massis et al. (2012) propose investigating family firms with contextual nuances of family firms in under-represented areas such as Asia. In addition, study on family firms related to tax aggressiveness activities is limited and the mixed results. Therefore, this study aims to explain the effect of family ownership on corporate tax aggressiveness. This study also investigates whether independent commissioners influence the practice of tax aggressiveness by family firms. The study observed 220 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2011 to 2015. We found that family ownership has a negative effect on tax aggressiveness. We also found that independent commissioners reinforce the negative influence of family ownership with tax aggressiveness. Our study contributes to the family firm literature in developing countries, particularly in terms of tax aggressiveness. We also provide practical implications for management to consider independent commissioners to provide adequate supervisors and advisors regarding family firm tax strategies.

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Corporate Governance and Tax Avoidance: Evidence from Governance Reform

Cited by 7 publications

References 33 publications

Corporate Governance, Political Connection, Family Ownership and Tax Aggressiveness in Indonesia

Corporate Governance, Political Connection, Family Ownership and Tax Aggressiveness in Indonesia

Penghindaran Pajak Pada Bank Umum : Dipengaruhi Oleh Karakter Eksekutif, Kualitas Audit, Komite Audit, Kompensasi Rugi Fiskal, Dan Return on Assets

Family ownership and corporate tax aggressiveness: The moderating effect of independent commissioner

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