Environmental Uncertainty and Tax Avoidance

Huang, Haochu; Sun, Li; Zhang, Joe

doi:10.1108/s1058-749720170000024002

Cited by 47 publications

(130 citation statements)

References 51 publications

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“…According to [5], environmental uncertainty leads to variability in revenue growth and increases information asymmetry between managers and outside stakeholders [5]. They also stated when corporate is operating in a highly volatile environment.…”

Section: Introductionmentioning

confidence: 99%

“…The prior study uses environmental uncertainty as a factor in tax avoidance activities conducted by [5]. [5] expanded the literature by conducting research studies in the field of tax avoidance and linking it to environmental uncertainty. Empirically they found that the environment with high-level uncertainty has a positive influence on tax avoidance activities.…”

Section: Introductionmentioning

confidence: 99%

“…They even stated that their research included in the first study to examine the relationship between environmental uncertainty and tax avoidance activities at the enterprise level. Therefore, this study aims to conduct related research in Indonesia to strengthen the findings of [5], mainly because there is still a lack of research that directly relates the relationship of environmental uncertainty to tax avoidance. [28] and [5] in conducting studies that link environmental uncertainty to tax avoidance.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, this study aims to conduct related research in Indonesia to strengthen the findings of [5], mainly because there is still a lack of research that directly relates the relationship of environmental uncertainty to tax avoidance. [28] and [5] in conducting studies that link environmental uncertainty to tax avoidance. Different from [5], [28] argued that uncertainty of operations led to uncertainty over future tax-savings benefits, leading to lower decision-making for tax sheltering.…”

Section: Introductionmentioning

confidence: 99%

“…[28] and [5] in conducting studies that link environmental uncertainty to tax avoidance. Different from [5], [28] argued that uncertainty of operations led to uncertainty over future tax-savings benefits, leading to lower decision-making for tax sheltering. Also, another study from found that firms operating in more uncertain environments benefited from the quality of their private information in helping them avoid paying more taxes [7].…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Does Managerial Ability and Corporate Governance Mitigate Tax Avoidance Activities When Environmental Uncertainty is Considered?

Ratu¹,

Siregar²

2019

Proceedings of the 2018 International Conference on Islamic Economics and Business (ICONIES 2018)

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This study aims to examine the effect of environmental uncertainty on tax avoidance with a managerial ability and corporate governance as a moderating role in it. The sample used in this study is a company listed on the Indonesia Stock Exchange (IDX) period 2014-2016. Abnormal Book-Tax Difference (ABTD) considered as an appropriate measurement of tax avoidance in this study because considering of misleading created from management discretion as another cause of tax avoidance in addition to the differences in tax standard with accounting standard. The results of the study showed significant positive evidence of the effect of environmental uncertainty on tax avoidance. Managerial ability is found to play a role in strengthening the influence of environmental uncertainty on tax avoidance. For corporate governance, there is evidence of its role to mitigate the impact of environmental uncertainty on tax avoidance.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Does Managerial Ability and Corporate Governance Mitigate Tax Avoidance Activities When Environmental Uncertainty is Considered?

Ratu¹,

Siregar²

2019

Proceedings of the 2018 International Conference on Islamic Economics and Business (ICONIES 2018)

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Cost stickiness behavior and environmental uncertainty in different strategies: Evidence from Southeast Asia

Restuti,

Gani,

Shauki

et al. 2023

Bus Strat Dev

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Managers consider environmental uncertainty in making decisions. Accordingly, this study aims to test the positive effect of environmental uncertainty on cost stickiness. This study also investigates the effects of environmental uncertainty on cost stickiness under different strategies. Further, firms need more able managers to deal with uncertain environments. This study observes the different effects of environmental uncertainty on cost stickiness when managers have varying levels of managerial ability. We run the panel regression analysis of 23,298 firm‐year observations in Southeast Asian countries in 2013–2019. This study documents that environmental uncertainty increases cost stickiness, and the effects are qualitatively similar for prospector and defender strategies. Further, the effect of environmental uncertainty on cost stickiness is stronger in firms with low managerial ability for both the prospector and defender strategies. Greater environmental uncertainty increases cost stickiness (ratio of SG&A to sales). This increase can be interpreted as a negative signal for future profits and a positive signal that firms retain resources to meet future sales expectations. Managerial ability affects cost stickiness. Hence, less managerial ability strengthens the relationship between environmental uncertainty and cost stickiness. This study operationalizes environmental uncertainty using three dimensions: munificence, dynamism, and complexity, which are arguably more comprehensive than prior studies that only use a single uncertainty dimension. This study also adds strategy and managerial ability to the relationship between environmental uncertainty and cost behavior. It demonstrates that firms deal with uncertainty based on their competitive advantage and managerial capabilities. This study documents the cost behavior of Southeast Asian.

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What do we know about managerial ability? A systematic literature review

Anggraini

Sholihin

2021

Manag Rev Q

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Environmental Uncertainty and Tax Avoidance

Cited by 47 publications

References 51 publications

Does Managerial Ability and Corporate Governance Mitigate Tax Avoidance Activities When Environmental Uncertainty is Considered?

Does Managerial Ability and Corporate Governance Mitigate Tax Avoidance Activities When Environmental Uncertainty is Considered?

Cost stickiness behavior and environmental uncertainty in different strategies: Evidence from Southeast Asia

What do we know about managerial ability? A systematic literature review

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