Tingkat Pengungkapan Dan Penggunaan Derivatif Keuangan Dalam Aktivitas Penghindaran Pajak

Oktavia, Oktavia; Martani, Dwi

doi:10.21002/jaki.2013.07

Cited by 21 publications

(32 citation statements)

References 17 publications

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“…Disclosure of company policies about derivative ownership allows the chosen policy to be unknown to investors as the owner of company funds. Although some of the literature states that derivative ownership is closely related to corporate strategy management, according to Pincus & Rajgopal (2002) and Oktavia & Martani (2013), derivative transactions are strongly related to earnings management actions. If investors understand this.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…The difference between this research and Oktavia (2011) is that the proxy used by Oktavia uses a notional amount proxy, while this study uses derivative instruments conducted by Oktavia & Martani (2013) by using the fair value of the absolute value of the difference in the value of derivative assets to the value of derivative liabilities. However, in this study Oktavia & Martani (2013) examined the effect of disclosure of derivative transactions on tax avoidance. Ayturk et al (2016) state that according to the hedge accounting rules in IFRS, companies must recognize changes in the fair value of derivatives as assets, liabilities or equity in each financial reporting period.…”

Section: Introductionmentioning

confidence: 99%

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Do Derivatives Instruments Ownership Decrease Firm Value in Indonesia?

Firmansyah

Purnama²

2020

REAKSI

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This research aims to examine the association between derivatives instruments and firm value. This research is quantitative research with multiple linear regression models and panel data. The sample employed in this research is non-financial companies listed on the Indonesia Stock Exchange (IDX). The type of data used in this study is secondary data sourced from financial statements, stock price information, and annual reports from 2012 to 2017. The sample selection using a purposive sampling method with the number of samples amounted to 246 firm-year. The result of this study suggests that a derivatives instrument is not associated with firm value. Investors in Indonesia do not consider ownership of derivative instruments by companies whether those are harmful of not for the investment impact. Also, derivatives do not have an official market in Indonesia as well as investors also do not understand the purpose of derivative ownership by companies.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Do Derivatives Instruments Ownership Decrease Firm Value in Indonesia?

Firmansyah

Purnama²

2020

REAKSI

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“…The mean (median) of GAAP_ETR is 25.13% (25.12%) while mean (median) reported in Oktavia and Martani (2013) is 28.7% (25.47%). These differences show that firms in this research are more likely to involve in aggressive tax planning than firms inOktavia and Martani (2013). Firms in this research are relatively larger than those in Oktavia and Martani…”

mentioning

confidence: 77%

Financial Derivatives in Corporate Tax Aggressiveness

Assih

Gudono

2018

The Indonesian Journal of Accounting Research

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The purpose of this study is to investigate the utilization of derivative financial instruments in tax aggressiveness activities. The study is conducted by analyzing the fair value of derivative financial assets and liabilities in total and categorized it into hedging and speculative (non-hedging) designations to identify which type of derivatives are used for tax avoidance. The results of the analysis reveal that cash effective tax rate (Cash ETR) is negatively associated with the fair value of hedging derivative assets. This indicates that firms are reducing tax payment by delaying the realization of derivative gains designated for hedging. Furthermore, Cash ETR is found to be negatively (positively) associated with the fair value of non-hedging derivative assets (liabilities). This indicates that firms are delaying the realization of gains while accelerating the realization of losses on non-hedging derivatives to reduce tax payment. Moreover, GAAP ETR is positively associated with the fair value of the non-hedging derivative liabilities, indicating that there is a reduction of income tax expense through accelerating the realization of non-hedging derivative losses thus it can be implied that firms are utilizing derivative financial instruments in earning management activity to minimize their tax burden. This study contributes to the existing literature and public policy by providing evidence on the use of financial derivatives in tax aggressiveness along with policy recommendations related to tax implications of financial derivative transactions since, up to the time of this publication, Indonesia has not had specific tax provision which regulate taxation on financial derivative transactions.

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“…The control variables used in the model are the size of the company (SIZE), company profitability (ROA), financing decisions (LEV), and capital intensity (CAPINT). These variables are often used as controls in studies concerning corporate tax avoidance 6,15,16 . The variable, SIZE, is measured using the natural logarithm of company total assets.…”

Section: Fsetr =mentioning

confidence: 99%

“…This research is the development of previous work 4 and Oktavia and Martani 6 , investigating the relationship between the purpose of derivatives utilization and the level of tax avoidance. Using cross-sectional data for nonfinancial companies listed in the Indonesia Stock Exchange during the period 2012-2014, each user sample was classified into two groups, namely speculators/ineffective hedgers and effective hedgers.…”

Section: Introductionmentioning

confidence: 99%

The Role of Corporate Governance in Financial Derivative Utilization for Corporate Tax Avoidance: Evidence from an Emerging Market

Mayanggara¹,

Wardhani²

2018

Proceedings of the 6th International Accounting Conference (IAC 2017)

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This research aims to analyze the role of financial derivatives utilization in corporate tax avoidance, and the moderating role of good corporate governance implementation on this relationship. Using data for non-financial companies listed in the Indonesian Stock Exchange for the period 2012-2014, this research classifies a derivative user as either speculator or effective hedger. The results show that speculator companies exhibit more aggressive tax avoidance than effective hedgers. This research also analyzes the impact of good corporate governance implementation on the relationship between derivatives utilization and corporate tax avoidance levels. The results show that good corporate governance implementation does not significantly reduce the tax avoidance gap between speculator and effective hedger companies.

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Tingkat Pengungkapan Dan Penggunaan Derivatif Keuangan Dalam Aktivitas Penghindaran Pajak

Abstract: The purpose of this study is to investigate whether, in a case study of Indonesia, financial

Cited by 21 publications

References 17 publications

Do Derivatives Instruments Ownership Decrease Firm Value in Indonesia?

Do Derivatives Instruments Ownership Decrease Firm Value in Indonesia?

Financial Derivatives in Corporate Tax Aggressiveness

The Role of Corporate Governance in Financial Derivative Utilization for Corporate Tax Avoidance: Evidence from an Emerging Market

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