Simultaneous Effect between Financial Reporting Aggressiveness and Tax Reporting Aggressiveness: The Impact on The Earnings Informativeness

Suharti, Intan Kurnia; Arieftiara, Dianwicaksih

doi:10.33312/ijar.427

Cited by 3 publications

(13 citation statements)

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“…Managers who have more information than outsiders are performing tax avoidance by utilizing loop-holes in the tax regulation, so that it categorized as legal action. Consistent with Mulyadi & Anwar (2015), Suharti & Arieftiara (2019) also found that to counterbalance their activity in financial reporting aggressiveness, managers also increase the intensity of tax avoidance ac-tivities. Thereby, managers could ascertain that aggressiveness financial reporting will not increase tax payment.…”

Section: Independency Of Board Of Commissionersupporting

confidence: 55%

“…Meanwhile, Frank et al (2009) have explained comprehensively that there is relationship between tax avoidance and financial reporting aggressiveness. In Indonesia context, Suharti & Arieftiara (2019) found financial reporting aggressiveness has a positive effect on tax avoidance.…”

Section: Independency Of Board Of Commissionermentioning

confidence: 99%

“…Fi-nancial reporting aggressiveness occurs when managers use their discretion in preparing fi-nancial reports and manipulate information in financial reports. According to definitions above, it can be concluded that the aggressiveness of financial reporting is related to earn-ings management activities, whether manipulative or not, in accordance with generally ac-cepted accounting principles or not, in order to avoid various risks that can harm the compa-ny such as deteriorating reputation and decreasing prices (Suharti & Arieftiara, 2019).…”

Section: Financial Reporting Aggressivenessmentioning

confidence: 99%

“…Managers' activities in financial reporting has impact on tax avoidance, when man-ager aggressively in financial reporting it will cause aggressively in tax reporting as well (Shackelford & Shevlin, 2005;Suharti & Arieftiara, 2019;Frank et al, 2009;Yunistina & Tahar, 2017). These studies showed that there is a trade-off between income reported in the financial statements to the shareholders and to the tax authority.…”

mentioning

confidence: 99%

“…As mentioned before, mainly in emerging countries, Corporate Governance is need to ascertain that managers' activities are concerning align with shareholders' interest. The mon-itoring mechanism from corporate governance system will mitigates potential risk/disadvantages rise from opportunistic behaviors of managers such as in financial report-ing aggressiveness and tax avoidance (Arieftiara et al, 2020;Suharti & Arieftiara, 2019;Armstrong et al, 2015). The ASEAN Corporate Governance Scorecard ranking obtained by Indonesia this year is getting better.…”

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confidence: 99%

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Does board of commissioners independence still relevant in tax avoidance monitoring?

Alhady

Arieftiara

Lastiningsih

2021

IJRBS

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This study aims to examine does independence of the Board of Commissioner (BOC) is still relevant as a corporate governance mechanism regarding monitoring managers’ activity, such as aggressive in financial reporting and tax avoidance during financial distress condition. The focus of this study is listed companies on the Indonesia Stock Exchange (IDX), particularly on Mining and Consumer Good Industry sector for period 2016 until 2018. Using multiple linear regression analysis, this study documents that Independency of board commissioner has significant effect on manager’s activity in avoiding tax, however this study failed to document that independency moderates the effect of financial distress and financial reporting aggressiveness on tax avoidance. In addition, this study find that financial distress and financial re-porting aggressiveness positively affect tax avoidance. This study contributes on two ways, first, it adds empirical evidence regarding the relevancy of board of commissioner’s independency as a measure of corporate governance mechanism to monitor managers’ activities in avoiding tax. Second, it also adds evidence that independence is unable to moderates the effect of financial distress and financial reporting aggressiveness on tax avoidance activities performed by managers. In brief, this study implies that the independence of BoC, solely as a measure of corporate governance mechanism is less relevant in a current situation especially when the company facing financial distress conditions and managers’ aggressiveness in financial reporting. Managers should more pay attention to the discretion of tax avoidance activities particularly when facing financial distress condition. The results also imply that regulatory bodies, for instance, Stock Exchange Supervisory Board under the Indonesian Financial Services Authority should reconsider or reformation the concept of independence of Board Commissioners.

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Section: Independency Of Board Of Commissionersupporting

confidence: 55%

Section: Independency Of Board Of Commissionermentioning

confidence: 99%

Section: Financial Reporting Aggressivenessmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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Does board of commissioners independence still relevant in tax avoidance monitoring?

Alhady

Arieftiara

Lastiningsih

2021

IJRBS

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Keinformatifan Laba Pada Perusahaan Sektor Farmasi: Pertumbuhan Aset, Leverage, Dan Penghindaran Pajak

Firmansyah¹,

Windara²,

Nugrahani³

et al. 2022

Jurnal Pajak dan Keuangan Negara

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Keinformatifan laba terkait dengan kemampuan laba dalam menjelaskan informasi kondisi perusahaan di pasar modal seperti harga saham dan return saham yang biasa dinyatakan dalam koefisien respon laba. Penelitian ini bertujuan untuk menguji pengaruh pertumbuhan aset, leverage, penghindaran pajak terhadap tingkat keinformatifan laba. Metode yang digunakan penelitian ini adalah pendekatan kuantitatif dengan menggunakan data triwulanan perusahaan sektor farmasi yang terdaftar di Bursa Efek Indonesia (BEI) periode triwulan 1 tahun 2018 sampai dengan triwulan 3 tahun 2021. Data penelitian diperoleh dari www.idnfinancials.com dan www.finance.yahoo.com. Total sampel yang digunakan dalam penelitian berjumlah 109 observasi berdasarkan purposive sampling. Pengujian hipotesis dilakukan dengan analisis regresi linier berganda untuk data cross-section. Penelitian ini menunjukkan bahwa pertumbuhan aset berpengaruh negatif terhadap keinformatifan laba. Sementara itu, leverage tidak berpengaruh terhadap keinformatifan laba. Penelitian ini juga menemukan bahwa penghindaran pajak berpengaruh positif terhadap keinformatifan laba. Penelitian ini memberikan kontribusi atas literatur koefisien respon laba dengan menggunakan data triwulanan yang masih jarang diulas dalam penelitian sebelumnya.

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Apakah Agresivitas Pajak Menurunkan Tingkat Keinformatifan Laba Perusahaan?

Pamungkas¹,

Firmansyah²

2021

ULTIMA Accounting

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Abstract— This research aims to examine the association between tax aggressiveness and the level of earnings informativeness. This study examines whether tax aggressiveness is being responded to by the market. This study's methodology is a quantitative approach with multiple linear regression models and panel data. The sample employed in this study is trading sector companies listed on the Indonesia Stock Exchange (IDX). The type of data used in this study is secondary data sourced from financial statements, stock price information, and annual reports from 2017 to 2019. The sample selection using a purposive sampling method with the number of samples amounted to 48 firm-year. This study suggests that tax aggressiveness is negatively associated with the level of earnings informativeness. The complexity of the company's tax aggressiveness activities makes it more difficult for investors to understand the quality of earnings reported by the company. Keywords: Tax Aggressiveness; Tax Avoidance; Earnings Informativeness; ERC; Market Responsiveness

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Simultaneous Effect between Financial Reporting Aggressiveness and Tax Reporting Aggressiveness: The Impact on The Earnings Informativeness

Cited by 3 publications

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Does board of commissioners independence still relevant in tax avoidance monitoring?

Does board of commissioners independence still relevant in tax avoidance monitoring?

Keinformatifan Laba Pada Perusahaan Sektor Farmasi: Pertumbuhan Aset, Leverage, Dan Penghindaran Pajak

Apakah Agresivitas Pajak Menurunkan Tingkat Keinformatifan Laba Perusahaan?

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