IDEAS home Printed from https://ideas.repec.org/a/wsi/rpbfmp/v25y2022i02ns0219091522500126.html
   My bibliography  Save this article

A Cross-Tabulation to Know the Relationship between Financial Performance and Leverage on a Company’s Tax Reporting and Tax Compliance

Author

Listed:
  • Kadarisman Hidayat

    (Faculty of Administrative Sciences, Brawijaya University, Malang City, Indonesia)

  • Mokhamad Khifni

    (Faculty of Administrative Sciences, Brawijaya University, Malang City, Indonesia)

  • Sri Mangesti Rahayu

    (Faculty of Administrative Sciences, Brawijaya University, Malang City, Indonesia)

  • Muhammad Saifi

    (Faculty of Administrative Sciences, Brawijaya University, Malang City, Indonesia)

Abstract

Purpose: Classify the characteristics of taxpayers in paying tax compliance based on financial performance, leverage, and tax reporting and analyze the relationship between financial performance and leverage on tax reporting and tax compliance companies.Design/method: This research was conducted at the Office of the Foreign Investment Tax Service in the Six Regional Offices of the DJP Jakarta, especially the Directorate General of Taxes (KPP PMA ENAM). The population in this study were corporate taxpayers registered at KPP PMA ENAM 2015–2018, namely 750 taxpayers. Sampling using the purposive method obtained as many as 660 companies. Cluster analysis and cross-tabulation were used as analysis methods in this study.Findings: In particular, corporate tax reporting depends on financial performance, but only on high-level corporate clusters that depend on leverage as well. While in the low company cluster (Cluster 1) tax compliance is influenced by these three variables, in the medium cluster (Cluster 2) tax compliance does not depend on these three variables, while in the high cluster (Cluster 3) tax compliance is only influenced by leverage.Originality: The cluster analysis method and the cross-tabulation method are used to analyze the effect of the financial performance and leverage variables on the tax reporting and tax compliance variables.

Suggested Citation

  • Kadarisman Hidayat & Mokhamad Khifni & Sri Mangesti Rahayu & Muhammad Saifi, 2022. "A Cross-Tabulation to Know the Relationship between Financial Performance and Leverage on a Company’s Tax Reporting and Tax Compliance," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 1-21, June.
    • Handle: RePEc:wsi:rpbfmp:v:25:y:2022:i:02:n:s0219091522500126
    DOI: 10.1142/S0219091522500126
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219091522500126
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219091522500126?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:wsi:rpbfmp:v:25:y:2022:i:02:n:s0219091522500126. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/rpbfmp/rpbfmp.shtml .

    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.