Debt Policy, Sales Growth, Tax Avoidance: The Moderating Role of Independent Commissioners

Amalia, Arie Rizky; Firmansyah, Amrie

doi:10.25105/ijca.v4i2.14153

Cited by 3 publications

(5 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Current ETR = Current Tax Expense Income Before Tax Tax avoidance is derived by Current ETR multiplied by -1 as Amalia & Firmansyah (2022) and Rahma & Firmansyah (2022). Executive compensation is the total cash the board of directors, commissioners, and key management receives for a year (Apsari & Supadmi, 2018).…”

Section: Methodsmentioning

confidence: 99%

“…Independent commissioners are expected to reduce tax avoidance activities by managers to increase compensation as company executives. H3: Independent commissioner weakens the positive effect of executive compensation and tax avoidance Establishing an independent commissioner is one way to reduce managers' acts conflicting with shareholders' interests (Amalia & Firmansyah, 2022). Independent commissioners have experience disciplining managers' performance (Rahma & Firmansyah, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Executive Compensation, Executive Character, Tax Avoidance: Does Independent Commissioner Matter?

Arista,

Firmansyah,

Michelle

et al. 2024

Educoretax

View full text Add to dashboard Cite

This study looks at the impact of executive compensation and character on tax avoidance. This study also looks at the moderating influence of the proportion of independent commissioners in this connection. This study uses secondary data from financial statements from consumer products businesses listed on the Indonesia Stock Exchange between 2017 and 2021, retrieved from www.idx.co.id. The overall sample size for this study was 85 observations, as determined via purposive sampling. Multiple linear regression was used to evaluate panel data. This research concludes that executive compensation is positively related to tax avoidance, while executive character does not affect tax avoidance. Furthermore, the proportion of independent commissioners succeeded in reducing the positive influence of executive compensation on tax avoidance, while the role of independent commissioners did not have a role in reducing the positive influence of executive character on tax avoidance. This research is expected to be a means for the Indonesian Tax Authority to create policies for profiling company compensation characteristics for executives as an initial indicator of tax avoidance activities carried out by companies.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Executive Compensation, Executive Character, Tax Avoidance: Does Independent Commissioner Matter?

Arista,

Firmansyah,

Michelle

et al. 2024

Educoretax

View full text Add to dashboard Cite

show abstract

“…When a company has higher debt, the company can take advantage of the high-interest expense to lower the company's tax expenses (Pajriansyah & Firmansyah, 2017). (Amalia & Firmansyah, 2022;Yulianty et al, 2021) found that debt policy is positively associated with tax avoidance. On the other side, income smoothing actions are carried out by companies with higher debt levels in their capital structure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Tax avoidance is tax planning to reduce the tax expenses on the government. Tax avoidance motives can be carried out because the company is in greater debt (Amalia & Firmansyah, 2022;Yulianty et al, 2021). Debt can be used for thin capitalization to increase margins.…”

Section: Introductionmentioning

confidence: 99%

Manager's Income Smoothing Actions Due to Debt Policy: The Moderating Role of Tax Avoidance

Firmansyah,

Geno,

Prakosa

et al. 2023

Educoretax

View full text Add to dashboard Cite

The manager carries out income-smoothing actions to guard the stability of profit. Stability and high profits are considered an indicator of a low-risk company. The manager made this effort to increase investor belief in providing the company with source funds. This study aims to test the effect of debt policy on action income smoothing. This research also includes tax avoidance as a moderating variable in this association. This study employs data derived from financial statements of listed manufacturing companies on the Indonesian Stock Exchange from 2016 until 2021—research data sourced from www.idnfinancials.com. Samples employed in this study totaled 564 observations (firm-year). Testing hypothesis is using analysis of multiple linear regression for panel data. This study finds that debt policy is positively associated with income smoothing. However, tax avoidance has no role in moderating the association between debt policy and income smoothing. This study contributes to developing literature on income smoothing in financial accounting research frameworks using different proxies in the Indonesian context.

show abstract

“…Ensuring the credibility of reports and improving company's reputation are essential in the current business landscape (Amalia & Firmansyah, 2022;Verawati, 2019). Consequently, companies often seek assurance on the information presented in sustainability reports (Hermawan & Septiani, 2022).…”

Section: Introductionmentioning

confidence: 99%

Influence of Profitability, Sustainability Finance Disclosures, and Sustainability Report Assurance on Cost of Debt

Dhiva,

Gunawan

2023

International, J. , Contemporary, account.

View full text Add to dashboard Cite

This study tries to determine how financial openness affects sustainability and profitability, sustainability report assurance regarding the cost of debt, business age, and firm size as a measure of control. The population of this research consists of banking enterprises registered on the Indonesia Stock Exchange (IDX) between 2017 and 2021. This data is obtained from secondary data that comes from annual reports or sustainability reports has a 116-person sample size. This study's analytical method was text analysis regression analysis. double linear. According to this study's test findings, the profitability variable significantly and negatively affects the cost of debt. This demonstrates that sound financial sustainability has a negative and significant influence on the cost of debt when the variable sustainability financial disclosure is used. Disclosure might reduce borrowing costs. The sustainability report assurance variable has a detrimental and substantial influence on debt's cost. The age of the firm, which served as the study's control variable, produced negative findings and had no impact about the price of debt. The size of the business is the second controlling factor, which has been shown to have a favorable and considerable influence on the company's debt costs.

show abstract

Debt Policy, Sales Growth, Tax Avoidance: The Moderating Role of Independent Commissioners

Cited by 3 publications

References 28 publications

Executive Compensation, Executive Character, Tax Avoidance: Does Independent Commissioner Matter?

Executive Compensation, Executive Character, Tax Avoidance: Does Independent Commissioner Matter?

Manager's Income Smoothing Actions Due to Debt Policy: The Moderating Role of Tax Avoidance

Influence of Profitability, Sustainability Finance Disclosures, and Sustainability Report Assurance on Cost of Debt

Contact Info

Product

Resources

About