Moderation of Financial Constraints in Transfer Pricing Aggressiveness, Income Smoothing, and Managerial Ability to Avoid Taxation

Aristyatama, Hanung Adittya; Bandiyono, Agus

doi:10.24843/jiab.2021.v16.i02.p07

Cited by 7 publications

(14 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…After the adoption of ETI nationwide, fictitious tax invoice transactions are also still found, with the number of fictitious tax invoice cases amounting to 525 cases with a potential state loss of one trillion rupiahs (Direktorat Jenderal Pajak, 2018). Second, affiliate transactions such as transfer pricing also affect income smoothing (Aristyatama & Bandiyono, 2021). The company can determine the transfer price with the subsidiary so that the price agreement cannot be prevented even if it has used ETI.…”

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Effect of Electronic Tax Invoice Adoption on Transparency of Indonesia Stock Exchange Main Board Companies

Susilo

Khoirunurrofik²

2022

JIAE

View full text Add to dashboard Cite

This study analyzes the relationship between adopting electronic tax invoice (ETI) and public companies' transparency. The analysis was conducted using binary panel data with a random-effects model, with data observations of companies listed on the Main Board of the Indonesia Stock Exchange except for the financial and technology sectors in the 2012-2019 period. The analysis results show that ETI affects the transparency of all three types of profits for a subsample of companies with enormous assets on the Main Board. Analysis of the industrial sector shows the industrial sectors of raw goods and secondary consumer goods have a significant influence. Furthermore, the findings of industrial sectors and certain types of profits where ETI has no considerable effect on transparency suggest the ETI application should improve its features. It will prevent transaction manipulation and company's behavior for making income smoothing. On the other hand, it is necessary to carry out a strategy of extracting tax potential for a particular sector related to fictitious invoice cases and frequent affiliate transactions.

show abstract

Section: Resultsmentioning

confidence: 99%

“…Apart from the regression model, the authors suspect that affiliate transactions influence whether the industrial sector has a role in the relationship between ETI adoption and transparency of public companies, according to the study by Aristyatama & Bandiyono (2021).…”

Section: Conclusion Limitations and Recommendationsmentioning

confidence: 99%

Effect of Electronic Tax Invoice Adoption on Transparency of Indonesia Stock Exchange Main Board Companies

Susilo

Khoirunurrofik²

2022

JIAE

View full text Add to dashboard Cite

show abstract

“…Thus, 70 observation data are obtained, but 15 extreme data must be removed from the observation data (outliers) so that the remaining 55 observation data are used in statistical testing. Aristyatama & Bandiyono (2021) by setting the primary consumer goods sector as the population according to the research phenomenon. Table 1 below is a description of the sample research criteria.…”

Section: Methodsmentioning

confidence: 99%

“…Francis et al (2021) explained that with the potential reputation costs that must be incurred by companies that are directly proportional to managerial ability, it is expected that managers with more qualified abilities will have the motivation not to get involved in tax avoidance efforts. Another characteristic is that tax avoidance will be increasingly avoided because a more qualified understanding of the industry is possessed by managers who have more ability (Aristyatama & Bandiyono, 2021). Based on studies by Aristyatama & Bandiyono (2021) and Francis et al (2021) resulted in a negative influence of managerial ability on tax avoidance efforts.…”

Section: Introductionmentioning

confidence: 99%

“…Another characteristic is that tax avoidance will be increasingly avoided because a more qualified understanding of the industry is possessed by managers who have more ability (Aristyatama & Bandiyono, 2021). Based on studies by Aristyatama & Bandiyono (2021) and Francis et al (2021) resulted in a negative influence of managerial ability on tax avoidance efforts. H3 : Tax avoidance negatively affected by managerial ability.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The influence of gender diversity, proportion of independent commissioners, managerial ability, and company size on tax avoidance

Kurnia,

Wagisuwari

2023

JAA

View full text Add to dashboard Cite

Indonesia, which occupies the fourth position for the largest population in the world, has high hopes for the results of tax contributions. However, the self-assessment system implemented by the government opens the opportunity doors for individuals to commit fraud. Efforts to minimize the tax burden of corporate taxpayers by taking advantage of regulatory loopholes are known as tax avoidance efforts. The purpose of this study is to find out the impact given by gender diversity, the proportion of independent commissioners, managerial abilities, and firm size on tax avoidance in primary consumer goods sector companies for the 2015-2021 period. This research method is a quantitative method using panel data regression analysis. In this study, all samples were obtained by purposive sampling technique. Through this technique, 70 observational data were obtained from 10 samples of companies. This study obtained the results that there is a simultaneous influence of gender diversity, the proportion of independent commissioners, managerial abilities, and firm size on tax avoidance. Meanwhile, partially managerial ability and firm size variables have a positive effect on tax avoidance, while gender diversity and the proportion of independent commissioners do not affect tax avoidance.AbstrakIndonesia yang menduduki posisi keempat untuk jumlah penduduk terbesar di dunia memiliki harapan yang besar pada hasil iuran pajak. Namun dengan self-assessment system yang diterapkan oleh pemerintah membuka pintu peluang bagi para oknum untuk melakukan kecurangan. Upaya dalam mengurangi beban pajak badan oleh wajib pajak dengan memanfaatkan celah regulasi dikenal dengan upaya tax avoidance. Tujuan dari penelitian ini ialah untuk mengetahui dampak yang diberikan oleh diversitas gender, proporsi dewan komisaris independen, kemampuan manajerial, dan ukuran perusahaan terhadap terjadinya upaya penghindaran pajak (tax avoidance) pada perusahaan sektor barang konsumen primer periode 2015-2021. Metode penelitian ini ialah metode kuantitatif menggunakan analisis regresi data panel. Pada penelitian ini seluruh sampel diperoleh dengan teknik purposive sampling. Melalui teknik tersebut maka diperoleh 70 data observasi yang berasal dari 10 sampel perusahaan. Penelitian ini memperoleh hasil bahwa terdapat pengaruh secara simultan dari diversitas gender, proporsi dewan komisaris independen, kemampuan manajerial, dan ukuran perusahaan atas terjadinya upaya tax avoidance. Sementara itu secara parsial, variabel kemampuan manajerial dan ukuran perusahaan berpengaruh positif pada tax avoidance sedangkan variabel diversitas gender dan proporsi dewan komisaris independen tidak memiliki dampak pada adanya upaya tax avoidance.

show abstract

Managerial Ownership and Managerial Ability on Tax Avoidance: Moderating Role of Firm Size

Saida Rahma,

2024

KSS

View full text Add to dashboard Cite

This research aims to empirically investigate the impact of managerial ownership and managerial competence on tax avoidance, along with examining how firm size moderates these relationships. The study utilized panel data linear regression with a fixed effects approach, employing purposive sampling from 87 manufacturing firms in Indonesia spanning the years 2019 to 2021, totaling 261 firm years. The analysis reveals that managerial ownership does not influence tax avoidance, while managerial competence demonstrates a positive association with tax avoidance. Additionally, the findings suggest that neither firm size nor its interaction with managerial ownership and ability significantly affects the practice of tax avoidance. Keywords: firm size, managerial ability, managerial ownership, tax avoidance

show abstract

Moderation of Financial Constraints in Transfer Pricing Aggressiveness, Income Smoothing, and Managerial Ability to Avoid Taxation

Cited by 7 publications

References 39 publications

Effect of Electronic Tax Invoice Adoption on Transparency of Indonesia Stock Exchange Main Board Companies

Effect of Electronic Tax Invoice Adoption on Transparency of Indonesia Stock Exchange Main Board Companies

The influence of gender diversity, proportion of independent commissioners, managerial ability, and company size on tax avoidance

Managerial Ownership and Managerial Ability on Tax Avoidance: Moderating Role of Firm Size

Contact Info

Product

Resources

About