The Effects of Executive and Company Characteristics on Tax Aggressiveness
Abstract
Tax aggressiveness is the act of manipulating profits carried out through tax planning that can be both legal and illegal. Based on the agency theory, the different interests of agents and principals may become a source of conflict. The aim of this study is to determine and obtain empirical evidence on the effect of executive characteristics, profitability, leverage, capital intensity, and company size on tax aggressiveness. This research was conducted on manufacturing companies listed on Indonesia Stock Exchange in 2016-2018, because the Indonesian economy has started to recover since 2016 and continued until 2018, so it will have an impact on tax revenues. The sample was selected using purposive sampling technique and obtained 70 manufacturing companies. Data analysis technique used is multiple linear regression analysis. The results show that executive characteristics, profitability, and company size had a positive effect. While leverage and capital intensity had negative effect on tax aggressiveness.
Keywords: Tax aggressiveness, executive characteristics, profitability, leverage, capital intensity, company size.
Downloads
Download data is not yet available.
References
Adisamartha, I. B. P. F., & Noviari, N. (2015). Pengaruh Likuiditas, Leverage, Intensitas Persediaan Dan Intensitas Aset Tetap Pada Tingkat Agresivitas Wajib Pajak Badan. E-Jurnal Akuntansi Universitas Udayana, 13(3), 973–1000.
Alfina, I. T., Nurlaela, S., & Wijayanti, A. (2018). The Influence of Profitability , Leverage , Independent Commissioner , and Company Size to Tax Avoidance. The 2nd International Conference on Technology, Education, and Social Science, 2(10), 102–106.
Andhari, P. A. S., & Sukartha, I. M. (2019). Pengaruh Pengungkapan Corporate Sosial Responsibility, Profitabilitas, Inventory Intensity, Capital Intensity, dan Leverage Pada Agresivitas Pajak. E-Jurnal Akuntansi Universitas Udayana, 18(2017), 2115–2142.
Ann, S. (2019). The Influence of Liquidity , Profitability , Intensity Inventory , Related Party Debt , And Company Size To Aggressive Tax Rate. Archivers of Business Research, 7(3), 105–115.
Budianti, S., & Curry, K. (2018). Pengaruh Profitabilitas , Likuiditas , dan Capital Intensity Terhadap Penghindaran Pajak (Tax Avoidance). Seminar Nasional Cendekiawan Ke 4, 1205–1209.
Chyz, J. A., & White, S. D. (2014). The Association Between Agency Conflict and Tax Avoidance: A Direct Approach. Advances in Taxation, 21, 107–138. https://doi.org/doi:10.1108/S1058-749720140000021007
Compiled Annual Report of IDX Manufacturing Companies. (2018). Annual Report of IDX Manufacturing Companies.
Darmawan, I. G. H., & Sukartha, I. M. (2014). Pengaruh Penerapan Corporate Governance, Leverage, Return On Assets, dan Ukuran Perusahaan Pada Penghindaran Pajak. E-Jurnal Akuntansi Universitas Udayana, 1(09), 143–161.
Delgado, F. J., Fernandez-rodriguez, E., & Martinez-arias, A. (2014). Effective Tax Rates in Corporate Taxation : a Quantile Regression for the EU. Inzinerine Ekonomika-Engineering Economics, 25(5), 487–496. https://doi.org/10.5755/j01.ee.25.5.4531
Dewi, N. L. P. P., & Noviari, N. (2017). Pengaruh Ukuran Perusahaan, Leverage, Profitabilitas dan Corporate Social Responsibility Terhadap Penghindaran Pajak (Tax Avoidance). E-Journal Akuntansi Universitas Udayana, 21(1), 830–859.
Dewi, N. N. K., & Jati, I. K. (2014). Pengaruh karakter eksekutif, karakteristik perusahaan, dan dimensi tata kelola perusahaan yang baik pada tax avoidance di bursa efek indonesia, 2, 249–260.
Dewinta, I. A. R., & Setiawan, P. E. (2016). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Profitabilitas, Leverage, Dan Pertumbuhan Penjualan Terhadap Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 14(3), 1584–1613.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2008). Long-Run Corporate Tax Avoidance. The Accounting Review, 83(1), 61–82.
Frank, M. M., Lynch, L. J., & Rego, S. O. (2009). Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. The Accounting Review: American Accounting Association, 84(2), 467–496.
Irianto, B. S., Sudibyo, Y. A., & Ak, A. W. S. (2017). The Influence of Profitability , Leverage , Firm Size and Capital Intensity Towards Tax Avoidance. International Journal of Accounting and Taxation, 5(2), 33–41. https://doi.org/10.15640/ijat.v5n2a3
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm : Managerial Behavior , Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360.
Julianto, P. A. (2018). Kemenperin: Industri Manufaktur Penyumbang Pajak Terbesar. Retrieved from https://www.kompas.com/read/2018/01/09/211727326/kemenperin-industrimanufaktur- penyumbang-pajak-terbesar
Kementrian Keuangan Republik Indonesia. (2019). Mengenal Tax Ratio Indonesia. Jakarta: Direktorat Jenderal Pajak.
Kim, J. H., & Im, C. C. (2017). The Study On The Effect And Determinants Of Small - And Medium-Sized Entities Conducting Tax Avoidance. The Journal of Applied Business Research, 33(2), 375–390.
Kimsen, Kismanah, I., & Masitoh, S. (2018). Profitability, Leverage, Size of Company Towards Tax Avoidance. Jurnal Ilmiah Akuntansi Fakultas Ekonomi, 4(1), 29–36.
Kurniawati, L., & Arifin, H. (2017). Agresivitas Pajak dan Maturitas Utang. Jurnal Pajak Indonesia, 1(1), 92–106.
Liu, Z., & Wang, Y. (2017). Effect of Earnings Management on Economic Value Added : G20 and African Countries Study. South African Journal of Economic and Management Sciences, 20(1), 1–9.
Maharani, I. G. A. C., & Suardana, K. A. (2014). Pengaruh Corporate Governance, Profitabilitas, dan Karakteristik Eksekutif Pada Tax Avoidance Perusahaan Manufaktur. E-Jurnal Akuntansi Universitas Udayana, 2(09), 525–539.
Nengzih. (2018). Determinants of Corporate Tax Avoidance: Survey On Indonesia’s Public Listed Company. International Journal of Economic, Business and Management Research, 2(02), 133–145.
Noor, R., Fadzillah, N. S. M., & Mastuki, N. A. (2010). Corporate Tax Planning : A Study On Corporate Effective Tax Rates of Malaysian Listed Companies. International Journal of Trade, Economics and Finance, 1(2), 189–193.
Park, S. (2018). Related Party Transactions and Tax Avoidance of Business Groups. Sustainability, 10(10), 1–14. https://doi.org/10.3390/su10103571
Putri, C. L., & Lautania, M. F. (2016). Pengaruh Capital Intensity Ratio, Inventory Intensity Ratio, Ownership Strucutre dan Profitabilityterhadap Effective Tax Rate (ETR). Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 1(1), 101–119.
Putri, T. R. F., & Suryarini, T. (2017). Factors Affecting Tax Avoidance on Manufacturing Companies Listed on IDX. Accounting Analysis Journal, 6(3), 407–419.
Rani, S., Susetyo, D., & Fuadah, L. L. (2018). The Effects of The Corporate’s Characteristics on Tax Avoidance Moderated by Earnings Management (Indonesian Evidence). Journal of Accounting, Finance, and Auditing Studies, 4(3), 149–169.
Sinaga, C. H. (2019). Pengaruh Leverage dan Capital Intensity pada Tax Avoidance dengan Proporsi Komisaris Independen sebagai Variabel Pemoderasi. E-Journal Akuntansi Universitas Udayana, 27(1), 1–32. https://doi.org/ 10.24843/EJA.2019.v27.i01.p01
Surya, S., & Noerlela, S. (2016). Pengaruh Profitabilitas Dan Leverage Terhadap Agresivitas Pajak (Studi Pada Perusahaan Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2009-2013). Jurnal Sains Manajemen & Akuntansi, VIII(1), 52–77.
Susanto, L., Yanti, & Viriany. (2018). Faktor-Faktor Yang Mempengaruhi Agresivitas Pajak. Jurnal Ekonomi, XXIII(01), 10–19.
Susilo, R. (2017). Indonesia Masuk Peringkat ke-11 Penghindaran Pajak Perusahaan, Jepang No.3. Retrieved from https://www.tribunnews.com/internasional/2017/11/20/indonesia-masukperingkat-ke-11-penghindaran-pajak-perusahaan-jepang-no3
Swingly, C., & Sukartha, I. M. (2015). Pengaruh Karakter Eksekutif, Komite Audit, Ukuran Perusahaan, Leverage, dan Sales Growth Pada Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 1(10), 47–62.
Tiaras, I., & Wijaya, H. (2015). Pengaruh Likuiditas, Leverage, Manajemen Laba, Komisaris Independen Dan Ukuran Perusahaan Terhadap Agresivitas Pajak. Jurnal Akuntansi, XIX(03), 380–397.
Yuniarwati, Ardana, I. C., Dewi, S. P., & Lin, C. (2017). Factors That Influence Tax Avoidance in Indonesia Stock Exchange. Chinese Bussiness Review, 16(10), 510–517. https://doi.org/10.17265/1537-1506/2017.10.005
Alfina, I. T., Nurlaela, S., & Wijayanti, A. (2018). The Influence of Profitability , Leverage , Independent Commissioner , and Company Size to Tax Avoidance. The 2nd International Conference on Technology, Education, and Social Science, 2(10), 102–106.
Andhari, P. A. S., & Sukartha, I. M. (2019). Pengaruh Pengungkapan Corporate Sosial Responsibility, Profitabilitas, Inventory Intensity, Capital Intensity, dan Leverage Pada Agresivitas Pajak. E-Jurnal Akuntansi Universitas Udayana, 18(2017), 2115–2142.
Ann, S. (2019). The Influence of Liquidity , Profitability , Intensity Inventory , Related Party Debt , And Company Size To Aggressive Tax Rate. Archivers of Business Research, 7(3), 105–115.
Budianti, S., & Curry, K. (2018). Pengaruh Profitabilitas , Likuiditas , dan Capital Intensity Terhadap Penghindaran Pajak (Tax Avoidance). Seminar Nasional Cendekiawan Ke 4, 1205–1209.
Chyz, J. A., & White, S. D. (2014). The Association Between Agency Conflict and Tax Avoidance: A Direct Approach. Advances in Taxation, 21, 107–138. https://doi.org/doi:10.1108/S1058-749720140000021007
Compiled Annual Report of IDX Manufacturing Companies. (2018). Annual Report of IDX Manufacturing Companies.
Darmawan, I. G. H., & Sukartha, I. M. (2014). Pengaruh Penerapan Corporate Governance, Leverage, Return On Assets, dan Ukuran Perusahaan Pada Penghindaran Pajak. E-Jurnal Akuntansi Universitas Udayana, 1(09), 143–161.
Delgado, F. J., Fernandez-rodriguez, E., & Martinez-arias, A. (2014). Effective Tax Rates in Corporate Taxation : a Quantile Regression for the EU. Inzinerine Ekonomika-Engineering Economics, 25(5), 487–496. https://doi.org/10.5755/j01.ee.25.5.4531
Dewi, N. L. P. P., & Noviari, N. (2017). Pengaruh Ukuran Perusahaan, Leverage, Profitabilitas dan Corporate Social Responsibility Terhadap Penghindaran Pajak (Tax Avoidance). E-Journal Akuntansi Universitas Udayana, 21(1), 830–859.
Dewi, N. N. K., & Jati, I. K. (2014). Pengaruh karakter eksekutif, karakteristik perusahaan, dan dimensi tata kelola perusahaan yang baik pada tax avoidance di bursa efek indonesia, 2, 249–260.
Dewinta, I. A. R., & Setiawan, P. E. (2016). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Profitabilitas, Leverage, Dan Pertumbuhan Penjualan Terhadap Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 14(3), 1584–1613.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2008). Long-Run Corporate Tax Avoidance. The Accounting Review, 83(1), 61–82.
Frank, M. M., Lynch, L. J., & Rego, S. O. (2009). Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. The Accounting Review: American Accounting Association, 84(2), 467–496.
Irianto, B. S., Sudibyo, Y. A., & Ak, A. W. S. (2017). The Influence of Profitability , Leverage , Firm Size and Capital Intensity Towards Tax Avoidance. International Journal of Accounting and Taxation, 5(2), 33–41. https://doi.org/10.15640/ijat.v5n2a3
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm : Managerial Behavior , Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360.
Julianto, P. A. (2018). Kemenperin: Industri Manufaktur Penyumbang Pajak Terbesar. Retrieved from https://www.kompas.com/read/2018/01/09/211727326/kemenperin-industrimanufaktur- penyumbang-pajak-terbesar
Kementrian Keuangan Republik Indonesia. (2019). Mengenal Tax Ratio Indonesia. Jakarta: Direktorat Jenderal Pajak.
Kim, J. H., & Im, C. C. (2017). The Study On The Effect And Determinants Of Small - And Medium-Sized Entities Conducting Tax Avoidance. The Journal of Applied Business Research, 33(2), 375–390.
Kimsen, Kismanah, I., & Masitoh, S. (2018). Profitability, Leverage, Size of Company Towards Tax Avoidance. Jurnal Ilmiah Akuntansi Fakultas Ekonomi, 4(1), 29–36.
Kurniawati, L., & Arifin, H. (2017). Agresivitas Pajak dan Maturitas Utang. Jurnal Pajak Indonesia, 1(1), 92–106.
Liu, Z., & Wang, Y. (2017). Effect of Earnings Management on Economic Value Added : G20 and African Countries Study. South African Journal of Economic and Management Sciences, 20(1), 1–9.
Maharani, I. G. A. C., & Suardana, K. A. (2014). Pengaruh Corporate Governance, Profitabilitas, dan Karakteristik Eksekutif Pada Tax Avoidance Perusahaan Manufaktur. E-Jurnal Akuntansi Universitas Udayana, 2(09), 525–539.
Nengzih. (2018). Determinants of Corporate Tax Avoidance: Survey On Indonesia’s Public Listed Company. International Journal of Economic, Business and Management Research, 2(02), 133–145.
Noor, R., Fadzillah, N. S. M., & Mastuki, N. A. (2010). Corporate Tax Planning : A Study On Corporate Effective Tax Rates of Malaysian Listed Companies. International Journal of Trade, Economics and Finance, 1(2), 189–193.
Park, S. (2018). Related Party Transactions and Tax Avoidance of Business Groups. Sustainability, 10(10), 1–14. https://doi.org/10.3390/su10103571
Putri, C. L., & Lautania, M. F. (2016). Pengaruh Capital Intensity Ratio, Inventory Intensity Ratio, Ownership Strucutre dan Profitabilityterhadap Effective Tax Rate (ETR). Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 1(1), 101–119.
Putri, T. R. F., & Suryarini, T. (2017). Factors Affecting Tax Avoidance on Manufacturing Companies Listed on IDX. Accounting Analysis Journal, 6(3), 407–419.
Rani, S., Susetyo, D., & Fuadah, L. L. (2018). The Effects of The Corporate’s Characteristics on Tax Avoidance Moderated by Earnings Management (Indonesian Evidence). Journal of Accounting, Finance, and Auditing Studies, 4(3), 149–169.
Sinaga, C. H. (2019). Pengaruh Leverage dan Capital Intensity pada Tax Avoidance dengan Proporsi Komisaris Independen sebagai Variabel Pemoderasi. E-Journal Akuntansi Universitas Udayana, 27(1), 1–32. https://doi.org/ 10.24843/EJA.2019.v27.i01.p01
Surya, S., & Noerlela, S. (2016). Pengaruh Profitabilitas Dan Leverage Terhadap Agresivitas Pajak (Studi Pada Perusahaan Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2009-2013). Jurnal Sains Manajemen & Akuntansi, VIII(1), 52–77.
Susanto, L., Yanti, & Viriany. (2018). Faktor-Faktor Yang Mempengaruhi Agresivitas Pajak. Jurnal Ekonomi, XXIII(01), 10–19.
Susilo, R. (2017). Indonesia Masuk Peringkat ke-11 Penghindaran Pajak Perusahaan, Jepang No.3. Retrieved from https://www.tribunnews.com/internasional/2017/11/20/indonesia-masukperingkat-ke-11-penghindaran-pajak-perusahaan-jepang-no3
Swingly, C., & Sukartha, I. M. (2015). Pengaruh Karakter Eksekutif, Komite Audit, Ukuran Perusahaan, Leverage, dan Sales Growth Pada Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 1(10), 47–62.
Tiaras, I., & Wijaya, H. (2015). Pengaruh Likuiditas, Leverage, Manajemen Laba, Komisaris Independen Dan Ukuran Perusahaan Terhadap Agresivitas Pajak. Jurnal Akuntansi, XIX(03), 380–397.
Yuniarwati, Ardana, I. C., Dewi, S. P., & Lin, C. (2017). Factors That Influence Tax Avoidance in Indonesia Stock Exchange. Chinese Bussiness Review, 16(10), 510–517. https://doi.org/10.17265/1537-1506/2017.10.005
Published
2020-06-02
How to Cite
DEWI, Kristina Surya; YASA, Gerianta Wirawan.
The Effects of Executive and Company Characteristics on Tax Aggressiveness.
Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 15, n. 2, p. 280-292, june 2020.
ISSN 2303-1018.
Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/58348>. Date accessed: 08 may 2024.
doi: https://doi.org/10.24843/JIAB.2020.v15.i02.p10.
Issue
Section
Articles
