The response of deferred executive compensation to changes in tax rates

Gorry, Aspen; Hassett, Kevin A.; Hubbard, R. Glenn; Mathur, Aparna

doi:10.1016/j.jpubeco.2015.08.003

Cited by 14 publications

(2 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Still, on the contrary, if the executive's compensation was inadequate, the tax aggressiveness was high. This tendency is also consistent with Hansen et al (2016) and Gorry et al (2015), suggesting the relationship between executive compensation and tax avoidance. Based on this description, the hypothesis is raised as follows: H3: Executive compensation affects tax avoidance Tax avoidance is an effort made by taxpayers to minimize tax payments.…”

Section: Introductionsupporting

confidence: 82%

“…The study of Huang et al (2018) revealed that if companies pay higher compensation money to executives, tax avoidance will be lower for companies registered in China. Gorry, Hassett, Hubbard, and Mathur (2015) report their empirical findings that there is a significant impact on taxes due to executive compensation. This statement is reinforced by the results of Hansen, Lopez, and Reitenga (2016), which prove that there is a tax relationship with sufficient compensation.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Board of Directors, Audit Committee, Executive Compensation and Tax Avoidance of Banking Companies in Indonesia

Idzniah

Bernawati

2020

jasf

View full text Add to dashboard Cite

Tax avoidance is the hottest issue in the last five years. It is reinforced with the Tax Amnesty Program by the Directorate General of Taxation (DJP), which began in June 2016. Therefore, this study aims to obtain empirical evidence of the influence of good corporate governance and executive compensation on corporate tax avoidance. This study used 215 banking companies listed on the Indonesia Stock Exchange (IDX) for 2014-2018. This study using a purposive sampling method that produced 119 suitable samples. The analytical method used is multiple linear regression analysis through IBM SPSS Statistics 25 software. Computation of tax avoidance is proxied by computing of Effective Tax Rates (ETR). Good corporate governance is proxied by the size of the board of directors and the audit committee, and executive compensation is proxied by all director compensations. The size of the audit committee is a total of the audit committee in one period. The size of the board of directors is the total of the board committee in one period. This study used ROA and Leverage as a control variable. In this study, it was found that executive compensation and good corporate governance, which was proxied by the Size of the board of directors and the Size of the audit committee shown a positive effect on tax avoidance. Investors who do not want tax avoidance must pay attention to executive compensation and good corporate governance in the company. In contrast, control variables have not significant effect on tax avoidance.

show abstract

Section: Introductionsupporting

confidence: 82%