The Role Of Corporate Governance And Tax Risk In Indonesia Investor Response To Tax Avoidance And Tax Aggressiveness

Amrie Firmansyah, Wahyudi Febrian, Teza Deasvery Falbo

Abstract


This study examines the effect of tax avoidance and tax aggressiveness on firm value. Besides, this study also analyzes the moderating role of tax risk and corporate governance in this relationship. This study employs secondary data from financial reports and stock price information at www.idnfinancials.com and www.yahoo.finance.com. The sample utilized in this study is Indonesian manufacturing companies from 2016 to 2019. Using purposive sampling, the sample obtained in the study is 260 observations. Data were analyzed employing multiple linear regression for panel data. This study suggests that tax avoidance is positively associated with firm value, while tax aggressiveness is negatively associated. Also, tax risk and corporate governance can reduce the positive effect of tax avoidance on firm value. Furthermore, tax risk and corporate governance can reduce the negative impact of tax aggressiveness on firm value. This study indicates that investors need to pay attention to companies' information to the public. Besides, the Financial Services Authority needs to improve governance policies for companies listed on the Exchange to support Indonesia's investors' protection.


Keywords


Tax, Avoidance, Aggressiveness, Protection, Governance

Full Text:

PDF

References


Adityamurti, E., & Ghozali, I. (2017). Pengaruh Penghindaran Pajak dan Biaya Agensi terhadap Nilai Perusahaan. Diponegoro Journal of Accounting, 6(3), 1–12.

Anggita, M. A., Putri, T. E., & Kurniawan, A. (2019). The effect of tax avoidance, earnings management and political connection on corporate social responsibility disclosure: Indonesian manufacturing companies evidence. ACCRUALS (Accounting Research Journal of Sutaatmadja), 3(2), 212–225. https://doi.org/10.35310/ACCRUALS.V3I2.116

Apriliyanti, V., Hermi, H., & Herawaty, V. (2019). Pengaruh kebijakan hutang, kebijakan dividen, profitabilitas, pertumbuhan penjualan dan kesempatan investasi terhadap nilai perusahaan dengan ukuran perusahaan sebagai variabel moderasi. Jurnal Magister Akuntansi Trisakti, 6(2), 201. https://doi.org/10.25105/jmat.v6i2.5558

Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113–132. https://doi.org/10.1016/j.ememar.2016.10.001

Arizki, A., Masdupi, E., & Zulvia, Y. (2019). Pengaruh Keputusan Investasi, Keputusan Pendanaan, Dan Kebijakan Dividen Terhadap Nilai Perusahaan. Jurnal Kajian Manajemen Dan Wirausaha, 1(1), 73–82. https://doi.org/10.37301/jkaa.v0i0.5122

Bahrun, M. F., Tifah, T., & Firmansyah, A. (2020). Pengaruh keputusan pendanaan, keputusan investasi, kebijakan dividen, dan arus kas bebas terhadap nilai perusahaan. Jurnal Ilmiah Akuntansi Kesatuan, 8(3), 263–276. https://doi.org/10.37641/jiakes.v8i3.358

Blaufus, K., Hundsdoerfer, J., Jacob, M., & Sünwoldt, M. (2016). Does legality matter? The case of tax avoidance and evasion. Journal of Economic Behavior and Organization, 127, 182–206. https://doi.org/10.1016/j.jebo.2016.04.002

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.

Budiyono, B., & Wulansari, F. A. (2018). Good corporate governance management on corporate values (empirical study on chemical companies listed on the Indonesia Stock Exchange Period 2013-2015). International Journal of Economics, Business and Accounting Research, 2(1), 46–56. http://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/301

Chen, X., Hu, N., Wang, X., & Tang, X. (2014). Tax avoidance and firm value: evidence from China. Nankai Business Review International, 5(1), 25–42. https://doi.org/10.1108/NBRI-10-2013-0037

Christiani, L., & Herawaty, V. (2019). Pengaruh kepemilikan manajerial, komite audit, leverage, profitabilitas, dan ukuran perusahaan terhadap nilai perusahaan dengan manajemen laba sebagai variabel moderasi. Seminar Nasional Cendekiawan, 5(2), 2.35.1-1.35.7. https://doi.org/10.25105/semnas.v0i0.5824

Desai, M. A., & Dharmapala, D. (2009). Corporate tax avoidance and firm value. 91(August), 537–546.

Drake, K. D., Lusch, S. J., & Stekelberg, J. (2019). Does tax risk affect investor valuation of tax avoidance? Journal of Accounting, Auditing and Finance, 34(1), 151–176. https://doi.org/10.1177/0148558X17692674

Fatimah, F., Mardani, R. M., & Wahono, B. (2019). Pengaruh good corporate governance terhadap nilai perusahaan dengan kinerja keuangan sebagai variabel intervening (studi kasus pada perusahaan manufaktur subsektor barang). E-Jurnal Riset Manajemen Prodi Manajemen, 8(15), 51–69. http://riset.unisma.ac.id/index.php/jrm/article/view/4449

Febriyanto, A. S., & Firmansyah, A. (2018). The effects of tax avoidance, accrual earnings management, real earnings management, and capital intensity on the cost of equity. Jurnal Dinamika Akuntansi, 10(1), 40–50. https://doi.org/10.15294/jda.v10i1.12976

Ferdiawan, Y., & Firmansyah, A. (2017). Pengaruh political connection, foreign activity, dan, real earnings management ter-hadap tax avoidance. Jurnal Riset Akuntansi Dan Keuangan, 5(3), 1601–1624. https://doi.org/10.17509/jrak.v5i3.9223

Firmansyah, A., & Ardi, A. K. (2020). Related party transactions, supply chain and cost management on firm’s value: Evidence from Indonesia. International Journal of Supply Chain Management, 9(3), 1201–1209. http://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/5026

Firmansyah, A., Febrian, W., Jadi, P. H., Husna, M. K., & Putri, M. A. (2021). Respon investor atas tanggung jawab sosial tata kelola perusahaan di Indonesia: perspektif resource based view. E-Jurnal Akuntansi, 31(8), 1918–1935. https://doi.org/10.24843/EJA.2021.v31.i08.p04

Firmansyah, A., & Herawaty, V. (2019). Do artificial and real income smoothing increase earnings informativeness equivalently in Indonesia? South East Asia Journal of Contemporary Business, Economics and Law, 18(5), 95–101. https://seajbel.com/wp-content/uploads/2019/04/seajbel5-VOL18_235.pdf

Firmansyah, A., Husna, M. C., & Putri, M. A. (2021). Corporate social responsibility disclosure, corporate governance disclosures, and firm value in Indonesia chemical, plastic, and packaging sub-sector companies. Accounting Analysis Journal, 10(1), 9–17. https://doi.org/10.15294/aaj.v10i1.42102

Firmansyah, A., & Muliana, R. (2018). The effect of tax avoidance and tax risk on corporate risk. Jurnal Keuangan Dan Perbankan, 22(4), 643–656. https://doi.org/10.26905/jkdp.v22i4.2237

Firmansyah, A., & Purnama, E. B. D. (2020). Do derivatives instruments ownership decrease firm value in Indonesia? Riset Akuntansi Dan Keuangan Indonesia, 5(1), 1–9. https://doi.org/10.23917/reaksi.v5i1.9817

Firmansyah, A., Setiawan, T. A., & Fathurahman, F. (2020). Nilai perusahaan: kebijakan utang, good corporate governance, cash holding. Jurnal Akuntansi Dan Bisnis, 20(2), 237. https://doi.org/10.20961/jab.v20i2.568

Firmansyah, A., Utami, W., Umar, H., & Mulyani, S. D. (2020). Do derivative instruments increase firm risk for Indonesia non-financial companies? International Journal of Business, Economics and Management, 7(2), 81–95. https://doi.org/10.18488/journal.62.2020.72.81.95

Gaol, G. A. L., Firmansyah, A., & Irawati, A. D. (2021). Intellectual capital, corporate social responsibility, and firm value in Indonesia’s banking industries. Jurnal Riset Akuntansi Terpadu, 14(1), 76–87. https://doi.org/110.35448/jrat.v14i1.10229

Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J., & Holmes, S. (2010). Accounting theory. John Wiley & Sons Australia.

Goh, B. W., Lee, J., Lim, C. Y., & Shevlin, T. (2016). The effect of corporate tax avoidance on the cost of equity. The Accounting Review, 91(6), 1647–1670. https://doi.org/10.2308/accr-51432

Goodell, J. W. (2020). COVID-19 and finance: Agendas for future research. Finance Research Letters, 35, 1–5. https://doi.org/10.1016/j.frl.2020.101512

Guenther, D. A., Matsunaga, S. R., & Williams, B. M. (2017). Is tax avoidance related to firm risk? Accounting Review, 92(1), 115–136. https://doi.org/10.2308/accr-51408

Hadi, N., Sheila, S., Firmansyah, A., & Trisnawati, E. (2021). Respon pasar atas pengungkapan keberlanjutan pada perusahan perbankan di indonesia: peran ukuran perusahaan. Bina Ekonomi, 25(2), 97–111. https://doi.org/10.26593/be.v25i2.5339.97-111

Hanlon, M., & Slemrod, J. (2009). What does tax aggressiveness signal? Evidence from stock price reactions to news about tax shelter involvement. Journal of Public Economics, 93(1–2), 126–141. https://doi.org/10.1016/j.jpubeco.2008.09.004

Haryanto, H. (2020). Dampak Covid-19 terhadap pergerakan nilai tukar rupiah dan indeks harga saham gabungan (IHSG). Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 4(2), 151–165. https://doi.org/10.36574/jpp.v4i2.114

Hatane, S. E., Supangat, S., Tarigan, J., & Jie, F. (2019). Does internal corporate governance mechanism control firm risk? Evidence from Indonesia’s three high-risk sectors. Corporate Governance, 19(6), 1362–1376. https://doi.org/10.1108/CG-02-2019-0071

Hutchens, M., & Rego, S. (2017). Tax risk and cost of equity capital. Journal of Chemical Information and Modeling, 53(9), 1689–1699.

Hutchens, M., Rego, S. O., & Williams, B. (2020). Tax avoidance, uncertainty, and firm risk. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3348559

Ihsani, M. A., Firmansyah, A., & Estutik, R. S. (2021). Market response to companies sustainability disclosure and environmental performance in Indonesia. Jurnal Dinamika Akuntansi Dan Bisnis, 8(2), 197–214. https://doi.org/10.24815/jdab.v8i2.21630

Inanda, T. U., Suranta, E., & Midiastuty, P. P. (2018). Pengaruh penghindaran pajak terhadap nilai perusahaan yang dimoderasi oleh corporate governance dan kepemilikan mayoritas. Jurnal Akuntansi, 12(2), 126–145. https://doi.org/10.25170/jara.v12i2.85

Irawan, F., & Turwanto, T. (2020). The effect of tax avoidance on firm value with tax risk as moderating variable. Test Engineering and Management, 83(March-April), 9696–9707. https://www.testmagzine.biz/index.php/testmagzine/article/view/5365/4340

Kovermann, J. H. (2018). Tax avoidance, tax risk and the cost of debt in a bank-dominated economy. Managerial Auditing Journal, 33(8–9), 683–699. https://doi.org/10.1108/MAJ-12-2017-1734

Kurniawan, A., & Syafruddin, M. (2017). Pengaruh penghindaran pajak terhadap nilai perusahaan dengan variabel moderasi transparansi. Diponegoro Journal of Accounting, 6(4), 94–103. https://ejournal3.undip.ac.id/index.php/accounting/article/view/18199

Kusumawardani, K. W., & Suardana, I. B. R. (2018). Corporate social responsibility, leverage, profitabilitas, penghindaran pajak dan nilai perusahaan : bagaimana keterkaitannya? Jurnal Manajemen Dan Bisnis, 15(1), 15–18. https://doi.org/10.38043/jmb.v15i2.587

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1–2), 3–27. https://doi.org/10.4324/9780203940136

Lietz, G. (2013). Tax avoidance vs tax aggressiveness: A unifying conceptual framework. In Working Paper. https://doi.org/10.2139/ssrn.2363828

Mudjijah, S., Khalid, Z., & Astuti, D. A. S. (2021). Pengaruh kinerja keuangan dan struktur modal terhadap nilai perusahaan yang dimoderasi variabel ukuran perusahaan. Jurnal Akuntansi Dan Keuangan, 8(1), 41–56. https://journal.budiluhur.ac.id/index.php/akeu/article/view/839

Muid, D. (2017). Analisis pengaruh tata kelola perusahaan dan penghindaran pajak terhadap nilai perusahaan. Diponegoro Journal of Accounting, 6(3), 1–15. https://ejournal3.undip.ac.id/index.php/accounting/article/view/19273

Novianti, T., & Firmansyah, A. (2020). The effect of tax risk, hedging, income smoothing, and cash flows volatility on firm value. Test Engineering and Management, 83(April), 9675–9686. https://www.testmagzine.biz/index.php/testmagzine/article/view/5362

Pocius, V., Stungurienė, S., & Paškevičius, A. (2014). The factors of the attractiveness of the capital market of Lithuania. Procedia - Social and Behavioral Sciences, 110, 1052–1062. https://doi.org/10.1016/j.sbspro.2013.12.952

Putri, M. M., Firmansyah, A., & Labadia, D. (2020). Corporate social responsibility disclosure, good corporate governance, firm value: evidence from Indonesia’s food and beverage companies. The Accounting Journal of Binaniaga, 5(2), 113. https://doi.org/10.33062/ajb.v5i2.398

Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and social disclosures: Link with corporate financial performance. British Accounting Review, 48(1), 102–116. https://doi.org/10.1016/j.bar.2014.10.007

Rachmawati, N. A., & Martani, D. (2017). Book-tax conformity level on the relationship between tax reporting aggressiveness and financial reporting aggressiveness. Australasian Accounting, Business and Finance Journal, 11(4), 86–101.

Rahardjo, B. T., & Murdani, R. (2016). Pengaruh kinerja keuangan dan pengungkapan corporate social responsibility terhadap nilai perusahaan (studi kasus pada perusahaan bumn yang terdaftar di BEI tahun 2010-2014). Jurnal Akuntansi Dan Bisnis Krisnadwipayana, 3(01), 1–9. https://doi.org/10.35137/jabk.v3i01.54

Rahman, A. (2019). Pengaruh pertumbuhan perusahaan, risiko bisnis terhadap struktur modal dan nilai perusahaan pada industri perbankan di Bursa Efek Indonesia sebelum dan sesudah krisis global. Jurnal Manajemen Dan Akuntansi, 25(1), 114–129. http://triatmamulya.ejurnal.info/index.php/triatmamulya/article/view/129

Rahman, M. A. I., Domas, Z. K. S., & Firmansyah, A. (2021). Hubungan pengungkapan keberlanjutan dan nilai perusahaan : kasus perusahaan sub sektor perbankan di Indonesia. Jurnalku, 1(4), 390–399. https://doi.org/10.54957/jurnalku.v1i4.105

Rego, S. O., & Wilson, R. (2012). Equity risk incentives and corporate tax aggressiveness. Journal of Accounting Research, 50(3), 775–810. https://doi.org/10.1111/j.1475-679X.2012.00438.x

Riny, R. (2018). Analisis faktor yang mempengaruhi nilai perusahaan pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia. Jurnal Wira Ekonomi Mikroskil, 8(2), 139–150. https://doi.org/https://www.mikroskil.ac.id/ejurnal/index.php/jwem/article/view/568

Santana, S. L. L., & Rezende, A. J. (2016). Corporate tax avoidance and firm value: evidence from Brazil. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2803993

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. Corporate Governance and Corporate Finance: A European Perspective, LII(2), 737–783. https://doi.org/10.4324/9780203940136

Siagian, F., Siregar, S. V., & Rahadian, Y. (2013). Corporate governance, reporting quality, and firm value: evidence from Indonesia. Journal of Accounting in Emerging Economies, 3(1), 4–20. https://doi.org/10.1108/20440831311287673

Sirojudin, G. A., & Nazaruddin, I. (2014). Pengaruh modal intelektual dan pengungkapannya terhadap nilai dan kinerja perusahaan. Journal of Accounting and Investment, 15(2), 77–89. https://journal.umy.ac.id/index.php/ai/article/view/1328

Suranto, V. A. H. M., Nangoi, G. B., & Walandoum, S. K. (2017). Analisis pengaruh struktur modal dan kinerja keuangan terhadap nilai perusahaan pada perusahaan perbankan di Bursa Efek Indonesia. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 5(2), 1031–1040. https://doi.org/10.35794/emba.v5i2.16059

Suwardika, I. N. A., & Mustanda, I. K. (2017). Pengaruh leverage, ukuran perusahaan, pertumbuhan perusahaan, dan profitabilitas terhadap nilai perusahaan pada perusahaan properti. E-Jurnal Manajemen Unud, 6(3), 1248–1277. https://ojs.unud.ac.id/index.php/Manajemen/article/view/27276

Tarihoran, A. (2016). Pengaruh penghindaran pajak dan leverage terhadap nilai perusahaan dengan transparansi perusahaan sebagai variabel moderasi. Jurnal Wira Ekonomi Mikroskil, 6(2), 149–164. https://www.mikroskil.ac.id/ejurnal/index.php/jwem/article/view/346

Toly, A. A., Claudya, C., Santoso, R., & Grace, F. (2019). Analisa pengaruh corporate governance, ownership structure, dan cash on hand terhadap nilai perusahaan. Jurnal Riset Keuangan Akuntansi, 5(2), 31–51. https://doi.org/10.25134/jrka.v5i2.2006

Widodo, T. T., & Firmansyah, A. (2021). Does investors respond to tax avoidance and tax risk ? Bina Ekonomi, 25(1), 23–40. https://doi.org/10.26593/be.v25i1.5123.23-40

Wilson, R. J. (2009). An examination of corporate tax shelter participants. Accounting Review, 84(3), 969–999. https://doi.org/10.2308/accr.2009.84.3.969

Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of COVID-19. Finance Research Letters, 36, 1–6. https://doi.org/10.1016/j.frl.2020.101528




DOI: http://dx.doi.org/10.35448/jrat.v15i1.14033

Refbacks

  • There are currently no refbacks.


pISSN 1979-682X    eISSN 2528-7443

Creative Commons License

Jurnal Riset Akuntasi Terpadu (JRAT) is licensed under a Creative Commons Attribution 4.0 International License