Ownership Structure and Corporate Tax Aggressiveness: A Conceptual Approach (original) (raw)
Related papers
2019
This study aims to prove the allegation of tax aggressiveness activity which is conducted by corporate taxpayers in Indonesia. This study also aims to examine and analyze the effect of corporate governance and audit quality as solutions of tax aggressiveness, and the presence of family ownership as a moderating variable in the effect of corporate governance and audit quality on tax aggressiveness. Tax aggressiveness is measured by using the effective tax rate (ETR) and book tax difference Manzon-Plesko (BTD_MP). The measurement of corporate governance is in accordance with the aspects, principles and recommendations of corporate governance listed in Circular Letter of Otoritas Jasa Keuangan (OJK), or Financial Service Authority, 32/SEOJK.04/2015, concerning Guidelines for Public Corporate Governance. Audit quality measurement uses the type of Public Accounting Firm (PAF), namely Big Four and Non Big Four. Family ownership was obtained in immediate way through company’s stock reports...
ANALYZING OWNER'S ROLE IN INFLUENCING CORPORATE TAX POLICY
Humanities and Social Sciences Letters, 2022
This study aims to analyze the owner's role in the company's tax policy taken by management. As the owner of capital, the role of the owner is strongly suspected of influencing management in every policy, including tax policy, while, tax for companies is still considered a burden that erodes issuers' profits and investors returns. Decisions in tax policy are indicators in assessing the level of compliance and dilemmas in responding to owner interests. STATA was used for the analysis of 132-panel data from the annual report of manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2019 after purposive sampling. This study found strong institutional and foreign owners' role on management policy for tax minimization. These results can be input for other stakeholders such as regulators in analyzing the level of taxpayer compliance from the influence of institutional and foreign share ownership. The advantage of this research is the use of the Tax Compliance Ratio (TCR) as an indicator of the company's tax policy compared to the Effective Tax Rate (ETR) which is commonly used by other studies. In addition, the expansion test of the research model with a simple regression test on the effect of each share ownership as well as a sensitivity test in analyzing the strength of TCR compared to ETR makes this research unique and deeper. Contribution/Originality: This study contributes to the literature on tax accounting research in using TCR for analyzing corporate tax policy, making an impact by ownership structure more than ETR. This study also finds that managers as investors play a greater role in corporate tax policy when there are no institutional and foreign investors, whereas if they exist, managers do not have an important role.
Tax aggressiveness of family firms in emerging countries: How does resource-based view explain it?
Entrepreneurial Business and Economics Review
The objective of the article is to empirically examine the effects of three resource categories based on the resource-based view-represented by firm size, top manager's experience, and closeness to governments-on family firms tax aggressiveness in emerging countries. Research Design & Methods: The study used data from the World Bank's Productivity and the Investment Climate Survey that covers several issues, including taxation. The survey was held in 2006-2018. We use data from 19 848 family firms as our sample. Data is analysed with the Ordered Probit Model. Findings: The results of the analysis showed that family firms with resources of firm size, top manager's better experience, and closeness to government have the options to engage in greater tax aggressiveness than other family firms. Implications & Recommendations: The governments of emerging countries need to pay more attention to larger family firms and the firms led by more experienced top managers to enhance tax compliance because these firms potentially engage in greater level of tax aggressiveness. Contribution & Value Added: This study offers a better understanding of the tax aggressiveness of family firm that is relatively poorly understood in the literature with the resource-based view approach. Article type: research article
Ownership Structure and Tax Avoidance in Asia: a Systematic Literature Review and a Research Agenda
The paper aims to understand the impact of corporate ownership structure on tax avoidance in Asian contexts. The ownership structure in Asia is concentrated in one group of shareholders, which enables this shareholder to have a significant influence on tax avoidance. This research mainly reviews published research articles. Search terms, such as ownership, tax avoidance, and tax aggressiveness were used in the search function in all fields of the papers from Scopus and Web of Science databases. This study captured nine pieces of empirical research after applying several filtrations (inclusion and exclusion) in the article search. Most of selected researches were conducted in China, while some in Southeast Asia. There are four review questions in this research, namely: (1) How do shareholders influence tax avoidance levels in Asia; (2) What is the best way to measure the level of ownership and tax avoidance; (3) What type of corporate owners do scholars study the most and the least; (4) What are the methodological gaps in the research topic (corporate ownership and tax avoidance) that future scholars should be aware of. The paper finds that different shareholders behave differently towards tax, and the behaviour is according to the host country's attributes, such as country settings, national tax policy, and investor protection levels. The study primarily helps governments and regulators understand the motives and techniques shareholders apply to avoid tax. Furthermore, it also provides repeatable methodological guidance in detail for future researchers to conduct a systematic literature review and for research students to formulate their hypothesis on the relationship between ownership structure and tax avoidance.
Tax Agressiveness in Family Firms: Can Corporate Governance Mitigate It?
Journal of Accounting, Finance, Taxation, and Auditing (JAFTA), 2021
Every taxpayers objectives is to minimize the tax paid to government. Few business tried to avoid tax more agressively than the others. This research will tried to investigate whether the family firms are more tax agressive compare to non family firms. Tax agressiveness might be reduced if there is a working governance structure. This research will also investigate whether the governance structure (i.e size of board of director, proportion of independent director, external audit firms, and audit committee) would significantly reduced the tax agressiveness. To control the results, researcher used size, profitability and leverage. This research was quantitative explanatory research. Researcher will analyzed 15 out of 57 family own-business in Indonesia, and make a comparison with non family firms. Researcher examined the financial statements and annual report from year 2011 – 2015. The research will used multiple regression analysis as a data analysis tools. This research will produc...
Tax aggressiveness determinants
Journal of Islamic Accounting and Finance Research
Purpose - This study aims to examine the effect of capital intensity, inventory intensity, corporate social responsibility and good corporate governance on tax aggressiveness. Good corporate governance variables used in this study were proxied with independent commissioners and audit commitments.Method - This research focused on manufacturing companies listed on the Indonesia Stock Exchange in the period of 2016-2018. 177 samples were collected using a purposive sampling technique from 59 companies over an observation period of 3 consecutive years. The samples were then analyzed using a multiple linear regression.Result - The results of this study show that capital intensity has a positive and significant effect on tax aggressiveness, inventory intensity has a positive but not significant effect on tax aggressiveness, corporate social responsibility has no positive and significant effect on tax aggressiveness, Independent commissioner has a positive and significant effect on tax agg...
Tax aggressiveness: a literature survey
Objective and Method: The objective in this article is to review the international and Brazilian studies on tax aggressiveness, considered as the behavior of trying to avoid or minimize the explicit tax burden for the corporation. As an academic research theme, tax aggressiveness or tax avoidance reveals to be a diversified and vast topic, although relatively recent. Results and Contributions: Among the research questions developed in this theme, the identification of the determinants of the company's tax aggressiveness is highlighted, considering: (i) company characteristics; (ii) environmental attributes; (iii) gatekeeper restrictions; and (iv) incentives for the firms. The determinants of the managers' tax aggressiveness and the influence of governance and the control structure are reviewed. In addition, the potential economic-financial consequences of tax aggressiveness for the firms and the existing empirical proxies to measure tax aggressiveness are identified. The study is closed off with the presentation of future research opportunities on the theme.
Corporate Governance, Political Connection, Family Ownership and Tax Aggressiveness in Indonesia
Jurnal Ilmiah Akuntansi dan Bisnis
Tax aggressiveness is a strategy of companies to present lower taxable earnings through tax planning without being accused of committing tax fraud, hence considered as one of the weaknesses of the self-assessment system. The purpose of this study was to examine and analyze the effect of corporate governance and political connection on tax aggressiveness with family ownership as the moderator. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2020. Using purposive sampling method, 49 companies were selected as the sample, resulting in 245 observations. The data were analyzed using multiple regression analysis and moderated regression analysis. This study found that corporate governance does not influence tax aggressiveness, that political connection has a negative effect on tax aggressiveness, and that family ownership does not moderate the influence of corporate governance and political connection on tax aggressiveness. Keywor...