IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v10y2021i6p213-220.html
   My bibliography  Save this article

The influence factors of the complementary level of financial and tax aggressiveness in Indonesia

Author

Listed:
  • Salsabila Anggiani Amriza

    (Accounting Department, Faculty of Economics and Business, Universitas Trilogi, Jl. TMP Kalibata No. 1, Jakarta, Indonesia)

  • Nurul Aisyah Rachmawati

    (Accounting Department, Faculty of Economics and Business, Universitas Trilogi, Jl. TMP Kalibata No. 1, Jakarta, Indonesia)

Abstract

This research focus to investigate the effect of audit quality and financial constraint on the complementary level of financial and tax reporting aggressiveness. This research uses binary logistic regression to investigate the effect of audit quality and financial constraint on the complementary level of financial and tax reporting aggressiveness with a sample of 147 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019. This research found that companies with good audit quality have a complementary level of financial and tax reporting aggressiveness that tends to be below. Also, companies that face financial constraints have a higher complementary level of financial reporting and tax aggressiveness. This study presents empirical evidence that supports the view of audit quality and financial constraint’s impact on the complementary level of financial and tax aggressiveness. Although there are many studies that discuss the relationship between financial and tax aggressiveness, there are still few studies that contribute to examine the determinants of the complementary level of financial and tax reporting aggressiveness in Indonesia. Key Words:Financial Reporting Aggressiveness, Tax Aggressiveness, Financial Constraint, Audit Quality, Complementary Level of Financial and Tax Aggressiveness

Suggested Citation

  • Salsabila Anggiani Amriza & Nurul Aisyah Rachmawati, 2021. "The influence factors of the complementary level of financial and tax aggressiveness in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 213-220, September.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:6:p:213-220
    DOI: 10.20525/ijrbs.v10i6.1317
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1317/1004
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v10i6.1317
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v10i6.1317?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chen, Shuping & Chen, Xia & Cheng, Qiang & Shevlin, Terry, 2010. "Are family firms more tax aggressive than non-family firms?," Journal of Financial Economics, Elsevier, vol. 95(1), pages 41-61, January.
    2. Nurul Aisyah Rachmawati & Sidharta Utama & Dwi Martani & Ratna Wardhani, 2019. "Determinants of the complementary level of financial and tax aggressiveness: a cross-country study," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 11(2), pages 145-166.
    3. Nurul Aisyah Rachmawati1 & Sidharta Utama & Dwi Martani & Ratna Wardhani, 2020. "Do Country Characteristics Affect the Complementary Level of Financial and Tax Aggressiveness?," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 16(1), pages 45-62.
    4. Alexandra Fernandes & António Cerqueira & Elísio Brandão, 2017. "Tax and financial reporting aggressiveness: evidence from Europe," FEP Working Papers 597, Universidade do Porto, Faculdade de Economia do Porto.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nindhita Nisrina Sari & Siti Nuryanah, 2024. "The role of shareholders in controlling tax avoidance: evidence from ASEAN countries," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(3), pages 421-432, September.
    2. Luca Menicacci, 2022. "Financial reporting and book-tax conformity: A review of the issues," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2022(1), pages 41-77.
    3. Ji Seon Yoo & Ye Ji Lee, 2019. "National Culture and Tax Avoidance of Multinational Corporations," Sustainability, MDPI, vol. 11(24), pages 1-28, December.
    4. Erin Henry & Richard Sansing, 2018. "Corporate tax avoidance: data truncation and loss firms," Review of Accounting Studies, Springer, vol. 23(3), pages 1042-1070, September.
    5. Richardson, Grant & Taylor, Grantley & Lanis, Roman, 2015. "The impact of financial distress on corporate tax avoidance spanning the global financial crisis: Evidence from Australia," Economic Modelling, Elsevier, vol. 44(C), pages 44-53.
    6. García-Meca, Emma & Ramón-Llorens, Maria-Camino & Martínez-Ferrero, Jennifer, 2021. "Are narcissistic CEOs more tax aggressive? The moderating role of internal audit committees," Journal of Business Research, Elsevier, vol. 129(C), pages 223-235.
    7. Gopal Krishnan & Marietta Peytcheva, 2019. "The Risk of Fraud in Family Firms: Assessments of External Auditors," Journal of Business Ethics, Springer, vol. 157(1), pages 261-278, June.
    8. Feng, Zhi-Yuan & Wang, Ying-Chieh & Wang, Wen-Gine, 2024. "Corporate carbon reduction and tax avoidance: International evidence," Journal of Contemporary Accounting and Economics, Elsevier, vol. 20(2).
    9. Chuanlu Ge & Yuhan Bi & Jia Xu, 2024. "Local donation culture and corporate tax avoidance: Evidence from China," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 734-763, July.
    10. Chen, Yunsen & Huang, Jianqiao & Li, Xiao & Ni, Xiaoran, 2023. "Financial market opening and corporate tax avoidance: Evidence from staggered quasi-natural experiments," Finance Research Letters, Elsevier, vol. 54(C).
    11. Chyz, James A. & Ching Leung, Winnie Siu & Zhen Li, Oliver & Meng Rui, Oliver, 2013. "Labor unions and tax aggressiveness," Journal of Financial Economics, Elsevier, vol. 108(3), pages 675-698.
    12. Jiang, Wei & Zhang, Cheng & Si, Chengyu, 2022. "The real effect of mandatory CSR disclosure: Evidence of corporate tax avoidance," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    13. Stephen J. Smulowitz & Didier Cossin & Alfredo De Massis & Hongze (Abraham) Lu, 2023. "Wrongdoing in Publicly Listed Family- and Nonfamily-Owned Firms: A Behavioral Perspective," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1233-1264, July.
    14. Shams, Syed & Bose, Sudipta & Gunasekarage, Abeyratna, 2022. "Does corporate tax avoidance promote managerial empire building?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(1).
    15. Behnam Karamshahi & Zeinab Azami & Tabandeh Salehi, 2018. "The association between competition power in markets and tax avoidance: evidence from Tehran stock exchange," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(3), pages 323-339, September.
    16. Hongying Yin & Xiaoyun Gong & Xiaofeng Quan & Annie Y. S. Li, 2024. "Local gambling preferences and corporate tax avoidance: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3413-3443, July.
    17. Geng Niu & Yi Wang & Yang Zhou & Xu Gan, 2024. "Family ties and corporate tax avoidance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(8), pages 976-996, October.
    18. James R. Hines & Niklas Potrafke & Marina Riem & Christoph Schinke, 2019. "Inter vivos transfers of ownership in family firms," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 225-256, April.
    19. Athira, A. & Ramesh, Vishnu K., 2023. "COVID-19 and corporate tax avoidance: International evidence," International Business Review, Elsevier, vol. 32(4).
    20. Yuan, Na & Gao, Yihong, 2022. "Does green credit policy impact corporate cash holdings?," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:10:y:2021:i:6:p:213-220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.