Firm Characteristics, Earnings Management, Tax Amnesty, and Firm Value (study in Indonesia public listed companies)

Abstract

<p>This research provided two analyses: (1) whether the firm characteristics and earnings management practices might influence the amount of tax amnesty's assets presented in the financial statement; and (2) whether the amount of tax amnesty's assets influenced the firm value. There are 86 observations obtained from Indonesian public listed companies that participate in the tax amnesty program during 2016 – 2017. This research used multiple regression to conduct each analysis. The results showed that a company with a high level of earnings management discloses more tax amnesty's assets. The result also showed that the higher the tax amnesty's assets, the lower the firm value would be. These results showed that a company that conducting earnings management utilise tax amnesty as a haven for avoiding political costs, but on the other side, the tax amnesty disclosure regarded by an investor as an act of confessions of past tax sins. Moreover, these results might contribute to the new insight into tax practices in global business.</p>

Determinants of Carbon Tax Implementation

“…They states that the implementation of tax policy regulations is related to Taxpayers awareness in use of tax policies as a form of awareness that must be met. This study also supports the research results Jacobs (2013), Echevarría (2015), Alink & Kommer (2016), Prasetyo (2016), Backus & Grant (2019), Adam et.al (2020, Shafika & Fakhroni (2020), Mayoral & Esteban (2019) Wardani & Susilowati (2020), Kate & Milionis (2019), Pratama (2021) and Górecki & Letki (2021) which shows the relationship between tax regulations implementation and busines size. The measure which is a proxy for business activities with regard to the environment as a responsibility for business continuity, is consistent with the results of the research Díaz-Giménez & Pijoan-Mas (2019), Alves &Afonso (2019), andBastani et.al (2020).…”

“…This scheme is intended to control climate change whose impact is a real threat to the environment and sustainability, especially to Indonesia. This is as stated Darmawati & Zelmiyanti (2021), Pratama (2021) and Shafika & Fakhroni (2020) that compared to other countries, Indonesia is one of the countries most affected by climate change based on the World Bank's 2019 report. The most vulnerable populations are those living in vulnerable areas and the poor, with an estimated 2.5 to 7.0 percent of GDP.…”

“…This business performance is an economic management that has been carried out as a business process. The process requires the Directorate General of Taxes (DGT) to always try to formulate regulations that can adopt changes in the economic structure (business) that are developing in society and do not conflict with those mandated in the Taxation Law (Fitriyani &Yusuf, 2021;Darmawati &Zelmiyanti, 2021;Pratama, 2021). This is what encourages DGT to continue to update legal policies that are in line with evolving business processes.…”

“…The ratio is linked to policies to optimize tax revenue on the one hand, and maintain a sustainable business climate on the other. Establishing fiscal policy regulates measures, so that each type of tax and business sector reaches the optinum point (Alves & Afonso, 2019;Behera & Dash, 2019;Backus & Grant, 2019;Díaz-Giménez & Pijoan-Mas, 2019;Anjanni et.al 2019;Shafika & Fakhroni, 2020;Pratama, 2021).…”