Tax Aggressiveness Research Articles

Determinants of the effective tax rate: Board composition of South African firms listed on the Johannesburg Stock Exchange

Motivation Numerous international studies have been conducted to determine the effect of board composition on tax aggressiveness, and ultimately the effective tax rate (ETR) of firms, but to the best of the author's knowledge, no similar research from a South African perspective has been conducted. Purpose This study explores the association between board composition and the ETR of South African Johannesburg Stock Exchange (JSE)-listed firms for the period 2012 to 2021 to obtain an understanding of how corporate governance attributes affect the ETR of firms. Design and methodology A sample of 40 firms is purposively selected from the top 200 JSE-listed firms based on market capitalisation on 31 December 2021. The study employs a quantitative approach by applying the panel data multivariate regression model. Main findings The study shows that board size, as a corporate governance attribute, is a determinant of the ETR of South African JSE-listed firms. Additionally, other board composition-related corporate governance attributes such as independence, gender diversity, and director shareholding showed no substantial association with the ETR. Practical implications The results of this study indicate that the board of directors – specifically its composition – is successful in its role of ensuring that the firm is, and is seen to be, a responsible corporate citizen by paying its fair share of taxes. Novelty This study is the first to offer empirical evidence linking board composition to South African JSE-listed firms’ ETRs. The result of the study therefore fills a research gap and has the potential to guide board governance committees and increase directors’ awareness of their tax-related roles.

The Influence of Profit Management and Corporate Governance on Tax Aggressiveness

This research aims to determine and evaluate the influence of earnings management and corporate governance on tax aggressiveness. This type of research is associative quantitative. The data used is secondary data. The population in this research is food and beverage sub-sector companies listed on the Indonesia Stock Exchange (BEI) in 2018-2022. The sample data collection technique in this study used purposive sampling, namely a technique that takes into account criteria, so that the sample obtained using this method was 9 companies. The data analysis technique used is panel data regression analysis using E-views 9 software. The research results show that earnings management and corporate governance influence tax aggressiveness. Then, partially earnings management has no effect on tax aggressiveness. Meanwhile, corporate governance variables influence tax aggressiveness. This result is because the higher the corporate governance, the lower the level of tax aggressiveness taken by the company

The Effect of Company Size, Profitability, Liquidity, Inventory Intensity, and Sales Growth on Tax Aggressiveness of Non-Cyclical Consumer Companies

Taxes are one source of state income which used for the welfare of society. However, the public, namely taxpayers, including companies, have not contributed to tax payments and have taken tax-aggressive actions. This research aims to determine the effect of company size, profitability, liquidity, inventory intensity, and sales growth on tax aggressiveness in non-cyclical consumer companies listed on the Indonesia Stock Exchange in 2019–2022. This research uses secondary data and selection using purposive sampling to find a research sample of 55 companies for the 2019–2022 period. The results of research using SmartPLS show that the company size variable has a positive effect on tax aggressiveness. Meanwhile, profitability, liquidity, inventory intensity, and sales growth have no effect on tax aggressiveness.

Navigating through cyberattacks: The role of tax aggressiveness

This research investigates the impact of cyberattacks on tax aggressiveness using a difference-in-differences analysis with a matched sample. We find that firms experiencing cyberattacks are more likely to have lower cash effective tax rates and greater discretionary book-tax differences. We further show that cyberattacks have a greater impact on corporate tax aggressiveness when firms are more exposed to financial distress. Additional analyses show tax aggressiveness increases less when firms are in states with enactments of notification laws and firms with ex ante higher cybersecurity investment. Our aggregate results suggest that firms take more tax risky positions in response to greater financial distress and information asymmetry, which are attributed to the consequences of cyberattacks.

Impact of executive overseas backgrounds on corporate tax–avoidance behaviors

To examine the impact of executives’ overseas background on corporate tax aggressive behaviors, this paper selects A-share listed companies in China's stock markets from 2017 to 2021 as samples and shows that executives’ overseas experience has a significant effect on corporate tax aggressiveness. Compared with state-owned enterprises (SOEs), the executive background of non-SOEs plays a more significant role in promoting tax aggressiveness. Furthermore, an increase in ownership concentration weakens the positive impact of executive overseas background. Additionally, Big Four auditing weakens the positive effects of executive overseas background on tax aggressiveness, and increased media attention diminishes the positive relationship.

The impact of the CEO’s Islamic religiosity on tax aggressive behavior in family firms

Purpose The authors investigate the influence of CEOs’ Islamic religiosity on the level of tax aggressiveness within private family firms. In addition, this study aims to explore the moderating role of the CEO's ownership stake in the firm and the payment of Zakat. Design/methodology/approach The authors gathered data through surveys completed by 199 CEOs of Jordanian Islamic family firms. These survey results, along with financial statements, were used for multiple ordinary least squares regression analyses. Findings The results of this study reveal a negative relation between the extent of Islamic religiosity of the CEO and the level of tax aggressive behavior. Furthermore, the results suggest that an increase in the CEO’s ownership stake strengthens the negative association between the CEO’s religiosity and the extent of tax aggressive behavior. Finally, the CEO’s involvement in Zakat payments is shown to mitigate the negative association between the CEO’s religiosity and the extent of tax aggressive behavior. Originality/value In contrast to prior research that examines the relationship between religiosity and tax aggressiveness within the context of other religions, particularly Christianity, in listed firms, and primarily considers the religiosity of the overall firm environment, the study centers on the CEO’s religiosity in private Islamic family firms. The Islamic context further enables us to investigate whether the fulfillment of Zakat diminishes the moral obligation experienced by religious CEOs to fulfill their tax responsibilities.

Analysis of Internal and External Factors Affecting Tax Aggressiveness in The Healthcare Sector Companies

Analysis of Internal and External Factors Affecting Tax Aggressiveness in The Healthcare Sector Companies

The Phenomenon of Tax Aggressiveness is Associated with Capital Intensity, Inventory Intensity, profitability, and Leverage

Tax aggressiveness is an activity or reconstruction effort carried out with the aim of maximizing contributions to the company through tax management strategies. This study aims to analyze the effect of capital intensity, inventory intensity, profitability, and leverage on tax aggressiveness. The population studied was property and real estate companies listed on the Indonesia Stock Exchange from 2019 to 2022. Sampling using a purposive sampling method. The number of samples as many as 61 companies. Data collection techniques through documentation techniques using secondary data sources. Data analysis using multiple linear regression using statistical Application Program tools: Statistical Product and Service Solutions (SPSS). The results of this study showed that capital intensity, and profitability affect tax aggressiveness, while inventory intensity, and leverage did not affect tax aggressiveness.

The effect of firm size and transfer pricing on tax aggressiveness with institutional ownership as a moderating variable

This study aims to empirically prove the influence of firm size and transfer pricing on tax aggressiveness with institutional ownership as a moderating variable. The independent variables used in this research are firm size and transfer pricing. The dependent variable used in this research is tax aggressiveness and the moderating variable uses institutional ownership. The population in this study are basic materials sector companies listed on the Indonesia Stock Exchange in 2018-2022. The sample selection method used purposive sampling, based on this method 14 (fourteen) companies were obtained, the data that was successfully used as a research sample was 8 (eight) companies with observations for 5 (five) years. The data used in this research is secondary data in the form of annual financial reports. The results of this research indicate that Firm Size and Transfer Pricing simultaneously have a significant effect on Tax Aggressiveness. The results of research conducted partially state that Firm Size and Transfer Pricing influence Tax Aggressiveness. Apart from that, Institutional Ownership is unable to moderate the influence of firm size and transfer pricing on Tax Aggressiveness.

The Influence of Liquidity, Leverage, and Firm Size on Tax Aggressiveness (Case Study on Mining Companies Listed on the Indonesia Stock Exchange)

The Influence of Liquidity, Leverage, and Firm Size on Tax Aggressiveness (Case Study on Mining Companies Listed on the Indonesia Stock Exchange)

Pengaruh Agresivitas Pajak, Beban Pajak Tangguhan, dan Kebijakan Utang terhadap Nilai Perusahaan

This research aims to examine the influence of tax aggressiveness, deferred tax burden and debt policy on company value in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (BEI) in the 2018-2022 period. In this research, the dependent variable is used, namely Company Value (Y) and independent variables, namely Tax Aggressiveness (X1), Deferred Tax Burden (X2), Debt Policy (X3). This research uses financial reports of companies listed on the Indonesia Stock Exchange (BEI) for the 2018-2022 period. The population in this study is 125 non-cyclical consumer companies listed on the Indonesia Stock Exchange in the 2018-2022 period. The sample selection technique used a purposive sampling method, the samples obtained were 34 companies with 170 observation data. The data source uses quantitative method secondary data. The analysis technique used is multiple linear regression with the help of the eviews 10 application program. Based on the test results, this research states that 1) Tax aggressiveness has no effect on company value, 2) Deferred tax burden has an effect on company value, 3) Debt policy has no effect on the value of the company.

DOES TRANSFER PRICING, SALES GROWTH, AND CAPITAL INTENSITY AFFECT TAX AGGRESSIVENESS?

Purpose: This research aims to analyze the effect of transfer pricing, sales growth, and capital intensity on tax aggressiveness. Methodology/approach: The population of this research are mining companies listed on the Indonesia Stock Exchange (IDX) in 2018-2022, with a total of 83 companies. Data analysis technique uses descriptive analysis and multiple regression analysis using the SPSS 27 to analyze. Findings: The results of this research show that transfer pricing have a positive effect on tax aggressiveness. Meanwhile, sales growth and capital intensity variables have a negative effect on tax aggressiveness. Transfer pricing, sales growth, and capital intensity collectively have a significant effect on the level of corporate tax aggressiveness. Practical implications: The implications of this research can enhance knowledge and be used as a consideration or input for the government in economic decision-making and in formulating tax policies to address future weaknesses in tax regulations. Originality/value: This research examines mining companies in the most recent 5 years period 2018-2022.

Factors That Affect Tax Aggressiveness With Good Corporate Governance As A Moderating Variable

Factors That Affect Tax Aggressiveness With Good Corporate Governance As A Moderating Variable

Factors Affecting Aggressive Tax Actions with Entity Size Moderated

Factors Affecting Aggressive Tax Actions with Entity Size Moderated

Pengaruh Profitabilitas, Leverage, Likuiditas, Kualitas Audit Dan Agresivitas Pajak Terhadap Manajemen Laba Pada Perusahaan Sektor Keuangan Yang Terdaftar Di BEI Tahun 2018 – 2021

This research was formulated whether or not there are influence of probability, leverage, liquidity, audit quality and tax aggressiveness toward earnings management in financial sector companies listed on the idx 2019-2021. The purpose of the research was to figure out the are influence of probability , leverage, liquidity, audit quality and tax aggressiveness toward earnings management in financial sector companies listed on the idx 2019-2021. This type of research used a quantitative descriptive type. The variables of this research were probability, leverage, liquidity, audit quality, tax aggressiveness and earnings management. The data collection technique used was the documentation method. The documentationmethod was used as the basis for analyzing the data. The documentation was in the form of financial report. The analysis technique used in this research was multiple linear regression analysis. The results of the test for coefficient of determintation obtained an R square result of 0,006 or 6%, which means that the influence of probability, leverage, liquidity, audit quality and tax aggressiveness toward earnings management wasn’t too large. The results showed that probability, liquidity, audit quality and tax aggressiveness had no effect on earnings management, while leverage had an effect on earnings management.

The influence of sales growth and capital intensity on tax aggressiveness with inventory intensity as a moderating variabel

This research aims to empirically prove the influence of sales growth and capital intensity on tax aggressiveness, with inventory intensity as a moderating variable. The independent variables used in this research are sales growth and capital intensity, while the dependent variable is tax aggressiveness, and inventory intensity serves as the moderating variable. The population of this research consists of Consumers Non-Cylicals sector companies listed on the Indonesia Stock Exchange from 2018 to 2022. The sample selection method is purposive sampling, yielding 12 companies or 60 observation samples. The data used are secondary data in the form of audited annual financial statements of each company. This research use Quantitative data analysis methods and associative problem formulation methods with causal relationships are used with the aid of E-views 12 software. The results indicate that sales growth and capital intensity simultaneously effect on tax aggressiveness. Partially, sales growth has a effect on tax aggressiveness, while capital intensity does not have a effect on tax aggressiviness. Additionally, the results indicate that inventory intensity does not moderate (weaken) the effect of sales growth on tax aggressiveness, nor does it moderate (weaken) the effect of capital intensity on tax aggressiveness.

Does Good Corporate Governance contribute to Tax Aggressiveness in the Banking Sector

This study aims to determine how much influence good corporate governance is measured by the gender of the board of commissioners, the quality of external auditors and institutional ownership on tax aggressiveness. This research was conducted on banking companies listed on the Indonesia Stock Exchange in 2020-2022. This study used quantitative methods with purposive sampling techniques with a total sample number of 69. The analysis methods used in this study are classical assumption test and multiple linear regression analysis with SPSS Statistics 22 tool. The results of this study show that the gender of the board of commissioners, the quality of external auditors and institutional ownership do not affect tax aggressiveness. The limitations of this study include limited independent variables, auditor quality measurement is not optimal, supporting theory references are limited, and many companies do not provide complete information, so the research sample is reduced. Researchers suggest adding independent variables, avoiding dummy variables in measuring the quality of external auditors, as well as increasing the research period for stronger analysis.

The Influence of Capital Intensity, Advertising Intensity and Transfer Pricing on Tax Aggressiveness

The Influence of Capital Intensity, Advertising Intensity and Transfer Pricing on Tax Aggressiveness

SPECIAL RELATIONSHIP TRANSACTIONS AGAINST TAX AGGRESSIVENESS IN PROPERTY COMPANIES WITH INSTITUTIONAL OWNERSHIP AS A MODERATING VARIABLE

This study examines the effect of special relationship sales transactions and special relationship lending on tax aggressiveness with institutional ownership as a moderating variable. The data used in this study is secondary data taken from the annual financial statements of several property and real estate companies listed on the Indonesia Stock Exchange for 2020, 2021 and 2022. The sample in this study obtained 54 data from 18 selected companies using a purposive sampling technique. This study uses quantitative analysis methods, and the data analysis techniques used in this study are multiple regression equations and Moderated Regression Analysis (MRA). The results of this study indicate that Special Relationship Sales Transactions do not affect Tax Aggressiveness, while Special Relationship Lending Transactions have a positive effect on Tax Aggressiveness. Then Institutional Ownership cannot moderate the effect of special relationship sales transactions and special relationship lending transactions on tax aggressiveness.

The Effect of Financial Constraints and Political Connections on Tax Aggressiveness with ESG Disclosure as a Moderating Variable

The Effect of Financial Constraints and Political Connections on Tax Aggressiveness with ESG Disclosure as a Moderating Variable