Effect Of Tax Avoidance Research Articles

The interactive impact of tax avoidance and tax risk on the firm value: new evidence in the Tunisian context

PurposeThe purpose of this study is to examine the interactive impact of tax avoidance and tax risk on the firm value.Design/methodology/approachThis study covers 290 observations on non-financial corporations listed on the Tunisian Stock Exchange for the period ranging from 2008 to 2020, using the multiple linear regression technique.FindingsThe results show that tax avoidance positively affects the firm value while tax risk has a negative influence on the company value. More importantly, tax risk moderates the positive impact of tax avoidance on the firm value. Accordingly, tax avoidance must be considered in conjunction with tax risk when studying the effect on the firm value. The findings of additional analyses indicate that when tax avoidance is associated with a high level of tax risk, it negatively affects the firm value. Thus, investors negatively rate the high-risk tax avoidance.Research limitations/implicationsThe major limitation of this study is that it focuses only on Tunisian listed companies since their financial statements are publicly available. Although the sample is relatively small due to the problem of data availability, it is satisfactory owing to the twelve-year sampling period (from 2008 to 2020). Research implications- The results obtained are of great interest to researchers as they should be more careful in simply using effective tax rates as a measure of risky or aggressive tax avoidance.Practical implicationsThe findings may signal the need for Tunisian firm managers to consider spillovers when adopting risky tax avoidance strategies and to implement a tax risk management policy within the firm. They are also substantial for Tunisian regulators to create requirements for reporting risky tax avoidance practices in the company annual reports to protect the investors’ rights and the society interest in general. The results are also useful for the investors who would like to make good decisions with respect to tax planning strategies. It is not enough to rely on the Effective Tax Rate (ETR) to judge whether or not tax planning is risky. Volatile ETRs, as a proxy of the tax risk, can be useful for them in decision-making.Social implicationsThe results also highlight that risky tax avoidance decreases the firm value, and thus confirm the negative repercussions that such behavior can have not only on the firm, but also on the society in general, as the corporate tax contributes to covering the State public expenditure. Hence, it is considered a general concern.Originality/valueThe present study differs from others in the existing literature. In fact, it examines the joint effect of tax avoidance and tax risk on the firm value for Tunisian listed companies which are characterized by the predominance of agency conflicts between major shareholders and minor ones. Therefore, the authors seek to investigate if small shareholders can penalize risky tax avoidance practices by decreasing the firm value.

THE ROLE OF THE AUDIT COMMITTEE IN MODERATING THE EFFECT OF EARNINGS MANAGEMENT AND TAX AVOIDANCE ON COMPANY VALUE

This study aims to determine the role of the audit committee in moderating the effect of earnings management and tax avoidance on firm value. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange, while the research sample is manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. The sample selection technique used purposive sampling, the number of research samples was 28 and the number of observations of research data obtained was 140. This study used multiple linear regression and moderated regression analysis with a random effects model approach. The results of this study indicate that earnings management has a negative effect on firm value, while tax avoidance as proxied by the cash effective tax rate has no effect on firm value. Then the audit committee does not moderate the effect of earnings management on firm value, as well as the audit committee does not moderate the effect of tax avoidance on firm value.

PENGARUH TAX AVOIDANCE TERHADAP NILAI PERUSAHAAN DENGAN FAMILY MANAGEMENT SEBAGAI VARIABEL MODERASI

This research aims at how the effect of tax avoidance on firm value, and the moderating effect of family management toward the relationship of tax avoidance and firm value listed on the Indonesia Stock Exchange during 2017-2019. Sample was selected using purposive sampling method and the valid data was 380 data. Data processing techniques using multiple regression analysis what helped by Eviews version 10. The results of this study indicate that tax avoidance have a positive and significant effect on firm value, but family management has no moderating effect on the relationship of tax avoidance and firm value. The implication of this study is the need to increase the performance of the company’s management carrying out the tax avoidance activities in order to maximize company’s profits wich will provide a good signal for investors, thereby increasing firm value.

Auditor tax expertise and corporate tax avoidance: Evidence from Taiwan

AbstractThe link between auditor tax expertise and corporate tax avoidance is investigated in this study. Using a sample of Taiwanese listed firms from between 2005 and 2019, it is found that companies that hire auditor tax experts engage in a higher level of tax avoidance. The results also show that this association is more pronounced among firms that have subsidiaries registered in tax havens. The findings of this study show that this positive association between auditor tax expertise and corporate tax avoidance can be mitigated through the adoption of IFRS. This study makes a contribution to existing literature by using a unique Taiwanese setting to study the tax avoidance effect of auditor tax experts and the effect of a common tax avoidance technique have on tax savings.

Porez na dobit i evazija poreza na dobit u odabranim zemljama

Profit tax is a direct tax paid by all countries in the world, and it holds a great importance because it represents a very important source of public revenue. Taxpayers fulfill their income tax obligations by submitting tax returns for specific periods. However, with the establishment of taxes, the issue of tax evasion arises, posing challenges to public service financing. This paper aims to examine the amount and collection methods of profit tax in the USA, European OECD countries, the Republic of Croatia, and the Republic of Serbia. Additionally, it highlights the adverse effects of tax avoidance by taxpayers in the examined countries. The paper employs exploratory and classification methods to identify current trends in income tax and the prevalence of tax evasion. The research reveals significant variations in profit tax rates among the analyzed countries and differences in its contribution to total tax revenue. Furthermore, all observed countries are making great efforts to suppress evasion, which causes great damage to the economy.

Examining the Role of the Company's Strategic System on the Relationship between Tax Avoidance and Power Seeking by Managers

The main purpose of the present study was to investigate the effect of tax avoidance on managers' desire for power, emphasizing the role of the company's governance system. The method of this research is practical in terms of its purpose, and from the point of view of correlation methodology, it is causal type (post-event). The statistical population of the research is the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 129 companies were selected as the research sample in the 6-year period between 1395 and 1400. The method used to collect information is a library, and the relevant data for measuring the variables were collected from the Kodal website and the financial statements of the companies, and initial calculations were made in Excel, then Stata software was used to test the research hypotheses. The results of the research show that tax avoidance has a positive and significant effect on managers' desire for power. However, the management system of the company has an inverse and significant effect on the relationship between tax avoidance and power seeking by managers.

Accounting information quality and tax avoidance effect on investment opportunities evidence from Gulf Cooperation Council GCC

The motivation of this research is to investigate the important factors that affect Gulf Cooperation Council (GCC) economies and increase the investment opportunities to avoid the threats of limited oil resources in the future. This study examines the relationship between tax avoidance, accounting information quality, and other control variables on investment opportunities in six Arabian GCC countries, namely Bahrain, Oman, Qatar, Saudi Arabia, Kuwait, and the United Arab Emirates (UAE). Moreover, this research investigates whether the accounting information quality affects the tax avoidance investment opportunities relationship. The data sample of the study includes 191 companies over the period of 2011 to 2017 (1337 company-year observations). This study used ordinary least squares (OLS) and moderated multiple regression (MMR) models for direct and moderation effects of accounting information quality, respectively. This study demonstrates that tax avoidance has a significant negative effect on investment opportunities, while the accounting information quality has a significant positive effect on investment opportunities. In line with the agency theory perspective, the high accounting information quality mechanism leads to the control of the managers’ opportunist behaviour, mitigates information asymmetry in managers and increases investment opportunities. Moreover, further analysis found that accounting information quality positively moderates the relationship between the tax avoidance and investment opportunities. Thus, higher quality of accounting information is strongly recommended to companies and policymakers, where tax planning is used as an alternative source of cash to achieve higher investment opportunities in GCC countries.

THE IMPACT OF TAX AVOIDANCE AND AUDIT QUALITY ON TAX AMNESTY PROGRAM

Purpose this study was to examine the effect of tax avoidance and audit quality on companies participating in tax amnesty based on Law no. 11 of 2016 concerning Tax Amnesty. Data processing uses logistic regression. Results of study found that companies with high audit quality have a lower participating in tax amnesty. Regression results showed that the tax avoidance has no effect on companies participating in tax amnesty. Implication of the research is as initial information for government as a tax regulator in taking or formulating policies related to tax amnesty. One of conditions for receiving tax amnesty is companies regularly report their tax payments.
 Keywords: Tax Amnesty, Tax Avoidance, Audit Quality, Big Four

Cause and Countermeasures on Tax Avoidance: From a Comparative View

With the internationalized establishment of multinational enterprises, many of them are trying to win more profits and save more costs for themselves for better development. To eliminate the adverse effects of tax avoidance and maintain international business order, relevant regulations and agreements should be proposed to prevent MNEs from excessively transferring their profits and evading the tax they should have paid. Case study and comparative analytical method have been used in this paper to look at whether or not the tax avoidance of MNEs is problematic for host states and propose appropriate solutions for different entities. From the research, both similarities and differences can be concluded from different MNEs’ methods of committing tax avoidance. Also, there is the possibility that relevant entities take corresponding measures within their respective region or scope to prevent adverse effects carried out by tax avoidance.

Peran Good Corporate Governance dalam Memoderasi Pengaruh Penghindaran Pajak dan Profitabilitas Pada Nilai Perusahaan

The purpose of this study was to determine the effect of tax avoidance and profitability on firm value with good corporate governance (GCG) as a moderating variable. The observed companies are manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. The number of samples used in the study were 77 companies with purposive sampling technique. The data analysis technique used is moderated regression analysis (MRA). The results showed that tax avoidance had no effect on firm value and good corporate governance (GCG) was unable to moderate the effect of tax avoidance on firm value. The study also found that profitability had a positive effect on firm value and good corporate governance (GCG) was able to strengthen the influence of profitability on firm value.
 Keywords: Firm Value; Good Corporate Governance; Profitability, Tax Avoidance.

Pengaruh Tax Avoidance, Firm Size Terhadap Earnings Management Dengan Financial Performance Sebagai Pemoderasi

The purpose of research is to empirically prove the effect of tax avoidance and firm size as independent variables, on earnings management as the dependent variable. The study also examines the role of the financial performance in moderating the relationship between these variables. The population in this study are mining sector companies listed on the Indonesia Stock Exchange for the period 2016 to 2020 totaling 193 companies. The sample in this study amounted to 28 companies with purposive sampling method, the data that were successfully processed were 140 observations. The type of research used is descriptive quantitative research. The data analysis method uses panel data regression with the help of E-views 10 software. The results showed that tax avoidance has a positive and insignificant effect on earnings management, while firm size has a negative and significant effect on earnings management, financial performance variables cannot moderate the influence of tax avoidance and financial performance variables can moderate the influence of firm size on earnings management.

PENGARUH TAX AVOIDANCE DAN KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN DENGAN LEVERAGE SEBAGAI VARIABEL MODERASI (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode Tahun 2016-2018)

This study aims to analyze the effect of tax avoidance and dividend policy on firm value with leverage as a moderating variable. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018 consisting of 166 companies, while the sample of this study is 18 companies with sampling using purposive sampling method. The research method used is descriptive statistics, testing classic assumptions and hypothesis testing multiple linear regression analysis The results showed that tax avoidance has no effect on firm value, dividend policy has an effect on firm value, leverage does not moderate tax avoidance on firm value, leverage does not moderate dividend policy on firm value, and tax avoidance and dividend policy have an influence on firm value.

Pengaruh tax avoidance, tax reporting aggressiveness, dan tax risk terhadap risiko perusahaan

This study aims to analyze the effect of tax avoidance, tax reporting aggressiveness, tax risk on corporate risk as proxied by the volatility of stock returns with institutional ownership as moderating. Manufacturing companies become the population with a sample selection technique, namely purposive sampling. Samples obtained is 34 with the 2016-2020 research period, which means the total number of data is 170. The type of data is secondary data that can be accessed through the Indonesia Stock Exchange and Yahoo Finance. Multiple regression analysis and moderating regression analysis were used in the data analysis technique using SPSS version 25. This study found that tax risk had an effect on corporate risk, while tax avoidance and tax reporting aggressiveness had no effect on corporate risk. Then the institutional ownership cannot moderate the effect of tax avoidance, aggressiveness of tax reporting, and tax risk on company risk.

Can digital transformation alleviate corporate tax stickiness: The mediation effect of tax avoidance

As the salient pain during the economic downturn, tax stickiness has been deeply troubling enterprises. Given the burgeoning academic interest in the role of digital transformation in corporate decision-making, we focus on its implications for tax management decisions. This study aims to test the association between digital transformation and tax stickiness and the mediating effect of tax avoidance. Theoretically, we use an information processing view to incorporate digital transformation into tax research. Empirically, we use the fixed effects model to verify our hypotheses based on the fine-grained panel data of Chinese publicly listed enterprises from 2007 to 2019. Results show that (a) digital transformation significantly reduces tax stickiness, (b) digital transformation alleviates tax stickiness by enhancing tax avoidance, and (c) the alleviating effect of digital transformation on tax stickiness is more prominent in companies with weak internal control and regions with low tax enforcement and high environmental uncertainty. Our findings hold after a range of robustness tests. Our results confirm the importance of digital transformation for tax management and provide new insights for enterprises to reduce tax stickiness through digital transformation. Our study also has important practical implications for business managers and policymakers.

The Effect of Tax Avoidance and Tax Risk on the Cost of Debt with Institutional Ownership as Moderating Variables in the Sub-Sector of Large Trade Listed on the Bei

This study aims to determine and analyze the effect of tax avoidance and tax risk on the cost of debt with institutional ownership as a moderating variable in the wholesale trade sub-sector listed on the IDX. This type of research is causal associative. The Population in this study is Big Trading Sub-sector companies listed on the Indonesia Stock Exchange. The sampling method is purposive sampling, so the number of samples used is 6 4 research sample data. Methods of data analysis using Eviews 10. The results show that tax avoidance and tax risk affect the cost of debt in large trading sub-sector companies listed on the Indonesian stock exchange in the 2017-2020 period. Institutional ownership is not able to moderate the relationship between tax avoidance and tax risk on the cost of debt in large trading sub-sector companies listed on the Indonesian stock exchange in the 2017-2020 period

The Role of Ownership Structure in Moderating The Relationship Between Tax Avoidance, Corporate Social Responsibility Disclosure, and Firm Value

Purpose: The company’s existence can be maintained by increasing the firms value every period, which will affect the welfare of investors. This study aims to examine and analyze the effect of tax avoidance, corporate social responsibility disclosure on firm value with managerial ownership as a moderating variable.
 Method: This study uses a sample of mining companies listed on the Indonesia Stock Exchange for 2016-2019. In this study, tax avoidance uses the Effective Tax Rate proxy, and corporate social responsibility disclosure uses the Corporate Social Responsibility Index. Firm value is measured using Tobin’s Q, and ownership structure as a moderating variable is measured by managerial and institutional ownership proxies.
 Findings: The results showed that tax avoidance and corporate social responsibility disclosure had no effect on firm value with firm size and capital intensity as control variables. Managerial ownership and institutional ownership significantly impact the relationship between tax avoidance and firm value with firm size and capital intensity as control variables. Managerial ownership and institutional ownership have no significant effect in moderating the relationship between corporate social responsibility disclosure and firm value with firm size and capital intensity as control variables.
 Novelty: The research used institutional ownership and managerial ownership as part of ownership structures to moderate the relationship between tax avoidance, corporate social responsibility disclosure, and firm value.
 Keywords: Tax Avoidance; Corporate Social Responsibility Disclosure; Firm Value; Ownership Structure; Managerial Ownership; Institutional Ownership

Tax Disclosure in Financial Statements: The Case of Indonesia

Tax disclosure has long been of concern to the public. Corporations provide tax disclosure as part of their financial reporting, whether on a voluntary or mandatory basis. However, the level of tax disclosure is still problematic due to the secrecy aspect of taxation. This research was undertaken to better understand the effects of tax avoidance, good corporate governance, industry regulation, and participation in tax amnesty on corporate tax disclosure. This research used data from 422 public Indonesian companies that had published financial statements in the year 2019. The data were analysed using multiple linear regression. The results reveal a negative relationship between tax avoidance and tax disclosure, with lower tax avoidance leading to higher tax disclosure; a positive relationship between both good corporate governance and tax amnesty and tax disclosure, with better corporate governance and tax amnesty leading to higher tax disclosure; and a negative relationship between industrial regulations and tax disclosure, with increased industrial regulations leading to lower corporate tax disclosure. Overall, this research shows that tax disclosure not only reveals tax activities but also reflects the company’s views on tax compliance.

The Effect Of Tax Avoidance, Company Size And Assets Structure On Capital Structure With Return On Equity As A Mediation Variable In Public Soe Companies Listed On Idx Period 2017-2021

This study aims to examine and analyze the effect of Tax Avoidance, Company Size and Asset Structure on Capital Structure with Return On Equity as a mediating variable in public BUMN companies listed on the IDX for the period 2017 - 2021. This study is a quantitative study with the documentation method. The population of this research is state-owned companies that go public listed on the Indonesia Stock Exchange during the 2020 period, totaling 15 companies. The sample of this research is 12 companies selected by purposive sampling technique. Data analysis used path analysis with SPSS as the analysis tool. The results show that 1) Tax Avoidance has a negative effect on Return On Equity, 2) Firm Size has a positive effect on Return On Equity, 3) Asset Structure has no effect on Return On Equity, 4) Tax Avoidance has no effect on Capital Structure, 5) Size Companies have a positive effect on Capital Structure, 6) Asset Structure has no effect on Capital Structure, 7) Return On Equity has no effect on Capital Structure, 8) Return On Equity as an intervening variable is not able to significantly mediate Tax Avoidance on Capital Structure, 9) Return On Equity as an intervening variable is not able to significantly mediate Firm Size on Capital Structure and 10) Return On Equity as an intervening variable is not able to significantly mediate Asset Structure on Capital Structure.

Tax Avoidance, Financial Performance and Profit Management Effect on Company Value

Company value is an investor’s perception of the company’s success rate which is often associated with stock price. This research aimed to examine the effect of tax avoidance, financial performance, and profit management on the company value. The research was quantitative. Based on purposive sampling, there were 14 samples from 80 company in the property and real estate sectors which were listed on Indonesia Stock Exchange 2016-2020. In addition, the data analysis technique used data panel regression model using E-Views 9. The research result concluded that partially the tax avoidance and financial performance had effect on the company value. In contrast, profit management had no effect on the company value. Meanwhile, together the tax avoidance, financial performance and profit management have a significant effect on the company value.

Efek penghindaran pajak pada nilai perusahaan dengan pelaporan berkerlanjutan sebagai moderator

The value of the company can increase or decrease due to tax evasion. The increase in company value was caused by the takeover of potential state assets to shareholders. Companies carry out tax avoidance practices by reducing the amount of tax that should be paid to get high profits so as to increase the value of the company. Research on the topic of tax avoidance on company value still has different results from previous research so it still needs to be researched with the context in developing countries, namely in Indonesia. This study aims to test the effect of tax avoidance on company value and with the existence of sustainability reporting as a moderator. This study used quantitative data taken from companies listed on the Indonesia Stock Exchange from 2016 to 2020. Hypothesis testing using the panel regression method. The results showed that tax avoidance had no significant influence on the value of the company and the moderation of sustainability reporting on tax avoidance had a negative influence but not significant impact.