Independent Corporate Governance Organs Activities and Tax Avoidance Activities: Evidence from Indonesia

Oktavia, Oktavia

doi:10.24912/ja.v24i2.697

Cited by 3 publications

(4 citation statements)

References 20 publications

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“…(Islam et al, 2022) state that an independent board of directors will motivate management to concentrate on long-term financial performance and produce sound governance mechanisms. Effective corporate governance ultimately plays an essential role in supporting the integrity and sustainability of the company's business (Oktavia, 2020).…”

Section: Discussionmentioning

confidence: 99%

“…Indonesia has an extra independent corporate governance entity called the independent commissioner. Corporate governance organs play an essential function in the company (Oktavia, 2020). Because of its independent nature, this organ is more objective in carrying out its duties and prioritizing the interests of wider stakeholders (Fuzi et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…Consequently, they will pursue shareholder interests by increasing shareholder value (Fuzi et al, 2016). Several studies have proven that the presence of an independent corporate governance organ can increase company value (Oktavia, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Suppose these organs have too many tasks because they hold multiple positions at other companies or institutions. In that case, they will neglect their responsibility to monitor the company, which can result in low-quality profit figures because they are unaware that the company's management has engaged in aggressive earning management (Oktavia, 2020). Suppose the company's earnings management activities become excessively aggressive due to a lack of supervision from independent corporate governance organs.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Independent Corporate Governance Organ Busyness, Earnings Quality, And Market Mispricing: Evidence From Indonesia

Oktavia,

Febriani Cristina Susianti Magdalena,

Hartoni

et al. 2023

Jurnal Akuntansi

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This research aims to give empirical evidence of the impact of independent corporate governance organ's busyness on earnings quality and market mispricing. This research utilized a sample of non-financial firms. It investigated the effect of independent corporate governance organ's busyness on earnings management and earnings persistence using random-effect panel data regression. Furthermore, the Mishkin Test was used to investigate market mispricing. The results showed that the busyness of independent commissioners and independent audit committees had a positive effect on increasing the magnitude of earnings management and a negative impact on the persistence of the accrual component but did not cause market confusion in assessing the company's earnings components. Furthermore, it was discovered that the degree of independent director's business did not influence the magnitude of earnings management. Instead, it resulted in poor persistence of the accrual component and market uncertainty in assessing earnings components.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Independent Corporate Governance Organ Busyness, Earnings Quality, And Market Mispricing: Evidence From Indonesia

Oktavia,

Febriani Cristina Susianti Magdalena,

Hartoni

et al. 2023

Jurnal Akuntansi

View full text Add to dashboard Cite

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Value relevance of comprehensive income: Tax avoidance and derivative instruments

Firmansyah

Fadlil

Wijaya

et al. 2022

CBSR

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The existence of comprehensive income as the adoption of IFRS, which has been carried out in Indonesia since 2012, has resulted in this figure information as one of the important information used by investors. Company policies originating from operating and non-operating activities can affect financial information quality. This study deals with the effect of tax avoidance and derivative instruments on the value relevance of comprehensive income. Research data is derived from the financial data of non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2012 to 2019, sourced from www.idx.co.id and finance.yahoo.com. This study’s total number of samples is 202 observations through purposive sampling with several criteria. Data in this research is included cross-section data so that the hypothesis testing employed in this research is ordinary least square regression analysis. This study finds that tax avoidance and derivative instruments are not associated with the value relevance of comprehensive income. This study suggests that investors’ investment decisions are not influenced by information on tax avoidance and ownership of derivative instruments. However, tax avoidance is positively associated with value relevance using the book value of equity basis, while derivative instruments ownership is negatively associated with value relevance with the comparable basis.

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Investors’ Reaction: Exploring Supervisory Function and Corporate Tax Policy

Tarmidi,

Mayangsari,

Nurlis

et al. 2024

RGSA

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Purpose: This study aims to analyze investor reactions to the supervisory function carried out by independent commissioners and audit committees, especially in supervising corporate tax policies taken by management. Theoretical framework: Corporate tax policy has the risk of tax penalties in the future and risks reducing investment returns in the future, so the role of independent commissioners and audit committees should be able to supervising management so that the tax policies taken do not harm investors. Method: 565 panel data from manufacturing companies on the Indonesia Stock Exchange 2015-2022 were analyzed with a quantitative approach and multiple linear methods using STATA. Result: This study found that independent commissioners encourage management in tax burden minimization policies, while the audit committee is not optimal in carrying out its supervisory function over corporate tax management policies. In addition, investors react to the audit committee because it is considered capable of carrying out the supervisory function of management, while investors do not react to independent commissioners and corporate tax policies. Research, Practical & Social implications: The results of this study encourage entities to increase the role of independent commissioners in carrying out supervisory functions such as the audit committee in order to get a positive response from investors which can increase company value for sustainability business. Originality/value: In this study, corporate tax policy is measured by reducing the statutory tax rate with a tax compliance ratio that is rarely used in previous studies, resulting in how much corporate tax policy minimizes the tax expense.

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Independent Corporate Governance Organs Activities and Tax Avoidance Activities: Evidence from Indonesia

Cited by 3 publications

References 20 publications

Independent Corporate Governance Organ Busyness, Earnings Quality, And Market Mispricing: Evidence From Indonesia

Independent Corporate Governance Organ Busyness, Earnings Quality, And Market Mispricing: Evidence From Indonesia

Value relevance of comprehensive income: Tax avoidance and derivative instruments

Investors’ Reaction: Exploring Supervisory Function and Corporate Tax Policy

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