The Impact of Tax Amnesty Announcement towards Share Performance and Market Reaction in Indonesia

Abstract

The Indonesian Government reviewed back the tax amnesty in 2016. Various reactions came up along with the announcement of tax amnesty, the investors did not accept-which led to the announcement of the Tax Forgiveness regulation through the market reactions and stock market performances in Indonesia Stock Exchange. This research is to analyze event study using information based on government-related announcements to show the impact of the new regulation towards stock performance and market reaction. The effect of the announcement will be seen from the changes in stock-prices or stock-returns that provide abnormal returns in the event period as well as market reaction which reflected in trading volume. This research used stock-return data and trading volume from all companies listed in IDX in 2016 and analyzed using the Paired Sample T-Test method. The result of this research shows there are differences among the average of stock-return, average abnormal-return of stock, and stock trading volume before and after the tax amnesty announcement.

Factors maximizing tax auditors’ performance: Study on Indonesian Directorate General of Taxes

“…Hence, their performance will not reduce substantially. According to Agustina et al (2018), job stress will affect individual work performance. High stress conditions will have an impact on low performance, high stress will have an impact on not achieving work, and will become an obstacle to others, thereby resulting in low performance.…”

Does the Disposition Effect Justify the Options Traders’ Irrationality?

“…It is found that the DE is sensitive to taxes and the decisions of traders are affected by the rate of taxes [40]. In this context [41], observed the impact of security transaction taxes and inferred that it has an adverse impact on stock market participants and reduces profitability. Studies by [42] reveal that to reduce tax liabilities, traders wind up their winning positions as the year approaches.…”

Insentif Pajak Memoderasi Pengaruh Book-Tax Differences Terhadap Trading Volume Activity

“…Pernyataan ini melatarbelakangi peneliti untuk menguji apakah dengan adanya insentif pajak ini dapat memoderasi pengaruh book-tax differences terhadap trading volume activity. Penelitian terdahulu terkait efek insentif perpajakan terhadap reaksi pasar menunjukkan bahwa terdapat perbedaan rata-rata return saham, rata-rata abnormal return saham, dan volume perdagangan saham sebelum d an sesud ah pengampunan pajak (Agustina et al, 2018a). Selain itu investor memiliki r espon asimetris terhadap perubahan tarif pajak yaitu investor lebih menanggapi penurunan tarif pajak daripada kenaikan tarif pajak untuk saham (Agapova & Volkov, 2021).…”

“…Hal ini berarti bahwa dengan adanya insentif pajak yakni tambahan penurunan tarif pajak sebesar 5% pada tahun 2019 dan 3% pada tahun 2020 ditangkap sebagai sinyal baik oleh invest or sesuai dengan teori sinyal. Hasil ini konsisten dengan hasil penelitian ter dahulu dari (Agapova & Volkov, 2021) dan (Agustina et al, 2018b). Per ubahan volume perdagangan saham di bursa menjadi indikator penting bagi investor dalam pengambilan keputusan transaksi di pasar saham.…”

“…Per ubahan volume perdagangan saham di bursa menjadi indikator penting bagi investor dalam pengambilan keputusan transaksi di pasar saham. Investor cenderung mengambil keputusan transaksi berdasarkan informasi yang mereka peroleh salah satunya adalah adanya penurunan tarif pajak badan yang merupakan salah satu bentuk insentif pajak sehingga volume perdagangan merupakan cer minan dari informasi yang diyakini investor (Agustina et al, 2018b).…”