top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 31 March 2019

Effects of Political Connections and Corporate Governance on Tax Aggressiveness in Indonesian Service and Banking Sectors

Arja Sadjiarto, Florencia, Olivia Nevanda

Petra Christian University, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.02.01.79

Abstract

We investigate whether political connections and corporate governance have any effects on tax aggressiveness in service and banking sector in Indonesia. Corporate governance act as the independent variable on the first model, and as moderating variable on the second model. Tax aggressiveness is measured using effective tax rates. Political connection is measured with the amount of any connection between the company and its board member's political background. While the measurement of corporate governance are among others: board independence, board size, CEO duality, institutional ownership, and external auditor's reputation. We took the samples service companies and banks listed on the Indonesia Stock Exchange for the period 2013-2017. The analysis used in this study is the multiple linear regression analysis. The finding is that political connection does not influence tax aggressiveness in both sectors. In the service sector, corporate governance measured with CEO duality and institutional ownership has a negative effect on tax aggressiveness, while the other measurements have no effect. While in banking sectors, board size has a negative effect, institutional ownership and external auditor's reputation have a positive influence. Corporate governance did not moderate the influence of political connections on tax aggressiveness in both sectors.

References

  1. Alves, M., Fereeira, I., Froufe, H., Abreu, R., Martins, A&Pintado, M. 2013. Antimicrobial Activity of Phenolic Compound Identified in Wild Mushrooms, SAR Analysis, and Docking Studies. Journal of Applied Microbiology ISSN 1364-5072

  2. Boussaidi, A., dan Hamed, M. S. (2015). "The Impact of Governance Mechanisms on Tax Aggressiveness: Empirical Evidence From Tunisian Context." Journal of Asian Business Strategy, 5(1)2015: 1-12

  3. Dewi, N. K., & Jati, I. (2014). Pengaruh Karakter Eksekutif, Karakteristik Perusahaan, dan Dimensi Tata Kelola Perusahaan yang Baik Pada Tax Avoidance Di Bursa Efek Indonesia. E-Jurnal Akuntansi, 249-260.

  4. Ebaid, Ibrahim El-Sayed. 2011.” Internal Audit Function: An Exploratory Study From Egyptian Listed Firms”. International Jurnal Of Law and Management, Vol. 53, No.2, pp. 108-128.

  5. Fadhilah, R. (2014). Pengaruh Good Corporate Governance Terhadap Tax Avoidance. Universitas Negeri Padang.

  6. Gomez, E. T. (2009). “The rise and fall of capital: Corporate Malaysia in historical perspective." Journal of Contemporary Asia, 39 (3), 345-381.

  7. Hamonangan Siallagan. Dan Mas’ud Machfoedz. 2006. Mekanisme Corporate Governance, Kualitas Laba dan Nilai Perusahaan. SNA 9 Padang

  8. Jefriando, M. (2017). Target pajak 2017 turun jadi Rp 1.283,6 triliun. Retrieved From File: https://m.detik.com /finance/berita-ekonomi-bisnis/d-3575383/target-pajak-2017-turun-jadi-rp-12836-triliun

  9. Jensen, M. C. danMeckling, W. H. (1976). “Theory of The Firm: ManajerialBehaviour, Agency Cost, and Ownership Structure”. Journal of Financial and Economics. 3 (4) : 305-360

  10. Khurana, I. K. dan W. J. Moser. (2009). Institutional Ownership and Tax Aggressiveness. www.ssrn.com

  11. Kim, C., dan Zhang, L. 2013. Corporate Connections and Tax Aggressiveness. City University of Hong Kong

  12. Kusuma, H. (2018). Penerimaan Pajak Kurang Rp 109 Triliun di 2018. Retrieved From File: https:// finance.detik.com/berita-ekonomi-bisnis/d-4368566/penerimaan-pajak-kurang-rp-109-triliun-di-2018

  13. Lestari, G. A. W., dan Putri, A. D. (2017). “Pengaruh Corporate Governance, koneksi politik dan Leverage terhadap Penghindaran Pajak”. E-Jurnal Akuntansi Universitas Udayana Vol.18.3

  14. Maharani, I Gusti Ayu Cahya dan Ketut Alit Suardana. 2014. Pengaruh Corporate Governance, Profitabilitas, dan Karakteristik Eksekutif Tax Avoidance Perusahaan Manufaktur. E-Jurnal Akuntansi  ISSN: 2302-8556.

  15. Mulyadi, M. S., Anwar, Y., & Krisma, E. B. A. D. (2014). "Examining Corporate Governance and Corporate Tax Management." International Journal of Finance & Banking Studies  3(3), 47–52.

  16. Nasser, A. T., Wahid, E. A., Nazri, S. N., & Hudaib, M. (2006). Auditor-client relationship: the case of audit tenure and auditor switching in Malaysia. Managerial Auditing Journal.

  17. Pemerintah Indonesia. 2010. Peraturan Menteri Keuangan Nomor 71/PMK.03/2010 tentang Pengusaha Kena Pajak Berisiko Rendah yang Diberikan Pengembalian Pendahuluan Kelebihan Pajak 

  18. Pradipta dan Supriyadi. 2015. Pengaruh Corporate Social Responsibility (CSR), Profitabilitas, Leverage, dan Komisaris Independen Terhadap Praktik Penghindaran Pajak. Jurnal. Universitas Gadjah Mada.

  19. Pranata, Febri Mashudi, Puspa, Dwi Fitri, dan Herawati. 2014. Pengaruh Karakter Eksekutif dan Corporate Governance terhadap Tax Avoidance. E-Journal Universitas Bung Hatta, Vol. 4, No. 1, 1-15.

  20. Pranoto, B. A. &Widagdo, A. K. (2016). “PengaruhKoneksiPolitik Dan Corporate GovernanceTerhadap Tax Aggressiveness”. Seminar Nasionaldan The 3rd Call for Syariah Paper. Syariah Paper Accounting FEB UMS.

  21. Putri, L. T. Y. (2014). “Pengaruh likuiditas, manajemen laba, dan Corporate Governance terhadap agresivitas pajak perusahaan (studi empiris pada perusahaan yang terdaftar di BEI periode 2008 – 2012)”. Jurnal Akuntansi 2 (1), 1 – 25. 

  22. Ridha, M., & Martani, D. (2019). Analisis Terhadap Agresivitas Pajak, Agresivitas Pelaporan Keuangan, Kepemilikan Keluarga, dan Tata Kelola Perusahaan di Indonesia. Simposium Nasional Akuntansi.

  23. Saeed. A. (2013). "The Effect of Managerial Stock Ownership on TheValue of Listed Companies in Tehran Stock Exchange." Advances in environmental Biology, 7 (8), pp: 1612-1615.

  24. Sandy, S. & Lukviarman, N. (2015). “Pengaruh Corporate Governance Terhadap Tax Avoidance: Studi Empiris Pada Perusahaan Manufaktur”. JAAI, 19 (2) : 85-98

  25. Suandy, E. (2014). Hukum Pajak, Edisi 6. Yogyakarta : Salemba Empat

  26. Suprimarini, N. D., & Suprasto H, B. (2017). Pengaruh Corporate Sosial Responsiblity, Kualitas Audit, dan Kepemilikan Institusional Pada Agresivitas Pajak. E-Jurnal Akuntansi Universitas Udayana, 1349-1377.

  27. Tiaras, I. & Wijaya, H. (2015). “Pengaruh likuiditas, leverage, manajemen laba, komisaris independen, dan ukuran perusahaan terhadap agresivitas pajak”. Jurnal Akuntansi, 19 (3), 380-397.

  28. Utami, W. T., & Setyawan, H. (2015). Pengaruh Kepemilikan Keluarga Terhadap Tindakan Pajak Agresif Dengan Corporate Governance Sebagai Variabel Moderating. Conference In Business, Accounting, and Management, (pp. 413-421).

  29. Wahab, E. A. A., Arif, A. M., Marzuki, M. M., &Sanusi, Z. M. (2017). Political connections, corporate governance, and tax aggressiveness in Malaysia. Asian Review of Accounting, Vol. 25 Issue: 3, pp.424-451.

  30. Ward, A., Brown, J., & Rodriguez, D., (2009) "Governance Bundles, Firm Performance and the Substitutability and Complementarity of Governance Mechanisms." Corporate Governance, 17 (5): 646-660

  31. Wicaksono, A. P. N. (2017). “Koneksi politik dan aggresivitas pajak: Fenomena di indonesia." Jurnal Ilmu Akuntansi 10 (1), 167–180.

  32. Winata, F. (2014). Pengaruh Corporate Governance Terhadap Tax Avoidance Pada Perusahaan yang Terdaftar Di Bursa Efek Indonesia Tahun 2013. Surabaya: Tax & Accounting Review.

bottom of page