The Effect of Public Share Ownership on Tax Evasion: Study on Companies Listed in Indonesia Stock Exchange Between 2008-2011

Abdullah, Muhammad Ikbal; Furqan, Andi Chairil; Parwati, Ni Made Suwitri; Asmanurhidayani, Asmanurhidayani

doi:10.5430/ijfr.v10n6p124

Cited by 5 publications

(8 citation statements)

References 20 publications

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“…Benfratello and Sembenelli (2002) and Kozlov et al (2002) show that foreign companies are known to be more productive than domestic companies. Empirical analysis by Hingorani et al (1997), Abdullah et al (2019) find that agency problems are more likely to be reduced by incentives that balance management interests and investor orientation in the case of managerial ownership and foreign ownership. Bushman et al (2004) in an analysis of debt financing revealed that corporate governance is related to the timeliness of funding.…”

Section: Introductionmentioning

confidence: 99%

The Relationship Between Good Corporate Governance and Performance of Most Liquid Stocks in Indonesia

Karim¹,

Purwanto²

2020

RWE

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The purpose of this study is to analyze the influence of independent commissioners, managerial ownership, foreign ownership, debt, and audit quality on the performance of company shares included in LQ 45 on the Indonesia Stock Exchange. The research sample is LQ 45 companies that issued financial statements as much as 120 companies with analysis technique used is multiple regression with one dependent variable and five independent variables. The results showed that foreign ownership, debt and audit quality have significant and positive effects on company performance. Moreover, the insider share ownership and the composition of independent commissioners were proven to not significantly affect company performance. This finding is practically useful to expand the possibility of foreign ownership, facilitate regulation of debt and quality audit obligations to improve stock performance. This study offers a new perspective on the implementation of good corporate governance in the context of the performance of liquid stocks on the stock exchange.

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Section: Introductionmentioning

confidence: 99%

The Relationship Between Good Corporate Governance and Performance of Most Liquid Stocks in Indonesia

Karim¹,

Purwanto²

2020

RWE

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“…Previous studies show that the realization of income affects the performance of the regional government (Mustikarini and Fitriasari, 2012;Marfiana and Kurniasih, 2013;Abdullah et al, 2019). This indicates that the realization of regional income can be a mediator of the influence of audit opinion on the performance of the regional government.…”

Section: Introductionmentioning

confidence: 85%

Incentive Function of Audit Opinion for the Increase of Regional Operational Expenditure and Own-Source Revenues Through Sensitivity Analysis in Indonesia

Abdullah¹,

Furqan²,

Yamin³

et al. 2020

RWE

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This study aims to analyze the sensitivity testing using measurements of realization of regional own-source revenues and operating expenditure and to analyze the extent of the effect of sample differences between Java and non-Java provinces by using samples outside of Java. By using sensitivity analysis, the results found the influence of audit opinion on the performance of the provincial government mediated by the realization of regional operating expenditure. More specifically, when using the measurement of the absolute value of the realization of regional operating expenditure it was found that there was a direct positive and significant influence of audit opinion on the performance of the Provincial Government. However, no significant effect of audit opinion was found on the realization value of regional operating expenditure and the effect of the realization value of regional operating expenditure on the performance of the Provincial Government. This result implies that an increase in audit opinion will be more likely to be used as an incentive for the Provincial Government to increase the realization of regional operating expenditure.

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“…Especially in the Malaysian and Indonesian capital markets, the results of these studies are different. Abdullah et al (2019) show that the higher the public ownership, the higher the tax avoidance, while Chan et al (2013) show the negative effect between the public ownership and tax avoidance. Furthermore, Sari & Martani (2010) and Anwar et al (2014) argued that this might be due to differences in corporate orientation and differences in business culture and culture tax audits in Indonesia compared to other countries.…”

Section: Company Ownership Structure and Agency Problemsmentioning

confidence: 92%

“…In both rules, it is suggested that the government will provide a reduction as incentive of 5% income tax rates to go public companies that are able to reduce their concentration of ownership by increasing the proportion of public share ownership by at least 40% of all paid shares of the company. Abdullah et al (2019) show that the public owned by at least 300 parties, of which each party has shares of less than 5% of the total paid-up shares and the composition of the share ownership of the maximum is valid for 6 months within 1 tax year.…”

Section: Incentives For Go Public Companies On Public Share Ownership In Indonesiamentioning

confidence: 99%

Majority Shareholder on the Composition of Public Ownership and Tax Avoidance Practices in Public Companies

Iqbal

Furqan

Kahar

et al. 2020

AJIS

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This study attempts to analyze the effectiveness of the enforcement of regulations on public share ownership. Specifically, this study analyzes whether there are differences in the composition of public ownership between before and after the regulation was enacted. By using independent t-test, carried out on the Indonesia Stock Exchange during 2008-2011 with a total of 320 observations (company-years), regarding the effectiveness of regulations regarding the provision of tax incentives associated with the proportion of public share ownership, the difference is analyzed with the deadline for the enactment of government regulations on reduction of income tax rates for public entity taxpayers in the form of public company and the Minister of Finance Regulation regarding the procedure for implementing and monitoring the decreasing of granting tariffs for domestic corporate taxpayers in the form of public companies. The results indicate that the regulations were not proven to empirically have significant effect in increasing the proportion of public share ownership in the capital market, and are more likely to lead to trade-offs with government efforts to increase tax revenues and reduce the practice of tax avoidance by companies. Therefore, it is necessary to review the tax incentive scheme that can be given to companies going public in order to be effective in increasing public share ownership in Indonesia and not trade-off with the practice of corporate tax avoidance.

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The Effect of Public Share Ownership on Tax Evasion: Study on Companies Listed in Indonesia Stock Exchange Between 2008-2011

Cited by 5 publications

References 20 publications

The Relationship Between Good Corporate Governance and Performance of Most Liquid Stocks in Indonesia

The Relationship Between Good Corporate Governance and Performance of Most Liquid Stocks in Indonesia

Incentive Function of Audit Opinion for the Increase of Regional Operational Expenditure and Own-Source Revenues Through Sensitivity Analysis in Indonesia

Majority Shareholder on the Composition of Public Ownership and Tax Avoidance Practices in Public Companies

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