Tax Audit Signals Contribute to the Diminishing of Tax Haven Beneficiary Firm Value

  • Elisa Tjondro Faculty of Economics and Business, Universitas Kristen Petra, Indonesia
  • Gracia Pulcheria Valentina Kristen Petra University
  • Sianne Ivana Gunawan Faculty of Economics and Business, Universitas Kristen Petra, Indonesia
  • Yohannes Dewantoro Faculty of Economics and Business, Universitas Kristen Petra, Indonesia

Abstract

The purpose of this study is to obtain an overview of the interaction of the tax havens' use and disclosure of tax audits and the impact of both on firm value before the rate reduction period. This research uses panel data, weighted least square regression. The findings of this study indicate that the use of tax havens through subsidiaries is associated with an increase in company value. In contrast, companies that have subsidiaries in tax haven countries and disclose the results of tax audits are associated with a decrease in firm value. This research to our knowledge, is the first research that combines the impact of tax haven utilization and tax audit disclosures on firm value in Indonesia. The unique thing in this research is the disclosure of tax audit result in the company’s annual report as a tax audit variable. 

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Published
2022-07-27
How to Cite
TJONDRO, Elisa et al. Tax Audit Signals Contribute to the Diminishing of Tax Haven Beneficiary Firm Value. Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 17, n. 2, july 2022. ISSN 2303-1018. Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/80637>. Date accessed: 14 aug. 2022.
Section
Articles