Abstract
This research aims to analyze how the educational background, tenure, and gender of Chief Executive Officer (CEO) affect tax aggressiveness in a family firm. Independent variables comprise the educational background, tenure, and gender of CEO while tax aggressiveness plays as dependent variable. In addition to those three parameters, the controlled variable also includes leverage and profitability. Population and sample of this research were taken from family firms registered in the Indonesian Stock Exchange during 2013 - 2016. With the purposive sampling, the number of total samples and sampling units in this research are 42 and 168, respectively. Furthermore, documentation techniques manifested in financial statement and annual report are used as data collection method where panel data regression with a fixed effect model is employed for statistical analysis. The present results demonstrate that the educational background and profitability significantly give a negative effect on the tax aggressiveness whereas the tenure and leverage considerably contribute to a positive consequence in the tax aggressiveness. Interestingly, it is shown that the gender factor does not substantially influence the tax aggressiveness.
Highlights
The companies in the world mostly are familyowned companies,including Indonesia. [29] survey results mentioned that 60% of listed companies in Southeast Asia are family companies
The purpose of this research is to prove the influence of educational background, tenure, and gender of the Chief Executive Officer (CEO) on tax aggressiveness by including leverage and profitability as control variables
Research results based on the influences of three pivotal independent variables, i.e. educational background, tenure, and gender of CEO on tax aggressiveness in family companies indicate that CEO’s educational background has a negative effect on the tax aggressiveness
Summary
The companies in the world mostly are familyowned companies,including Indonesia. [29] survey results mentioned that 60% of listed companies in Southeast Asia are family companies. [29] survey results mentioned that 60% of listed companies in Southeast Asia are family companies. The presence of family members in the management structure can reduce agency problems in the company. The agency problem due to ownership separation arises when managers take some hidden actions. [32] research on manufacturing companies listed on the IDX, proves that family companies are more aggressive concerning taxes than non-family companies. Tax aggressiveness is often done by companies including family companies. It occurs because the company think about a greater advantage than the risk of costs that may occur
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