Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality

Habib Saragih, Arfah; Ali, Syaiful; Suwardi, Eko; Utomo, Hargo

doi:10.1016/j.accinf.2023.100665

International Journal of Accounting Information Systems

2024

DOI: 10.1016/j.accinf.2023.100665

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Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality

Arfah Habib Saragih,

Syaiful Ali,

Eko Suwardi

et al.

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2024

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Cited by 3 publications

References 177 publications

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The moderating role of corporate tax risks on the market valuation of tax savings: a new empirical evidence in the Indonesian context

Suwardi,

Sholihin,

Arifa

et al. 2024

Cogent Business & Management

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The moderating role of corporate tax risks on the market valuation of tax savings: a new empirical evidence in the Indonesian context

Suwardi,

Sholihin,

Arifa

et al. 2024

Cogent Business & Management

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The power of good corporate governance in activating the impact of internal information quality on tax savings

Saragih

2024

JAL

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PurposeThis paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings.Design/methodology/approachThis study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports.FindingsBased on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests.Research limitations/implicationsThis examination utilizes only publicly traded companies from one developed country.Practical implicationsFor the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future.Originality/valueThis study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.

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Corporate tax performance and the COVID-19 pandemic: empirical evidence from Indonesia

Saragih

2024

PAR

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Purpose This study aims to enhance the understanding of the impact of the COVID-19 pandemic on corporate tax performance in the context of a large emerging country like Indonesia. Design/methodology/approach This study uses a quantitative approach with multiple regression methods on a data set of 2,366 firm-year observations registered on the Indonesia Stock Exchange (IDX) from 2017 to 2022. Findings The primary empirical findings from the multivariate regressions suggest a positive and significant association between the COVID-19 pandemic and corporate tax performance in Indonesia. In other words, these listed firms have increased their tax avoidance activities during the pandemic. As firms face financial hardships due to the pandemic's effects, they tend to engage in tax avoidance practices to reduce current income tax payments, thereby enhancing their liquidity. In addition, over time, firms have adapted to use various tax policies introduced by the government in response to the pandemic to mitigate the adverse impacts of the crisis. Research limitations/implications This study draws on a sample solely from one emerging country. Practical implications The results of this study can aid governments, policymakers, tax authorities and companies in evaluating their strategies concerning preparedness and emergency responses during crises, particularly those caused by pandemics. Originality/value To the best of the author’s knowledge, this study is considered one of the initial efforts to examine the impact of the COVID-19 pandemic on corporate tax avoidance in an emerging country like Indonesia.

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Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality

Cited by 3 publications

References 177 publications

The moderating role of corporate tax risks on the market valuation of tax savings: a new empirical evidence in the Indonesian context

The moderating role of corporate tax risks on the market valuation of tax savings: a new empirical evidence in the Indonesian context

The power of good corporate governance in activating the impact of internal information quality on tax savings

Corporate tax performance and the COVID-19 pandemic: empirical evidence from Indonesia

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