Saturday July 11th 2020

Tax Avoidance, Cost of Financing and Ownership Structure: Evidence From Indonesia

Anies Lastiati

Dwi Martani


 This paper provides empirical evidence on the relationship between tax avoidance, cost of debt and ownership structure using Indonesian firms listed in IDX during the tax years of 2009, 2010 and 2011. Two questions are addressed in this research. First, whether participating in tax avoidance activities is negatively associated with the cost of debt (COD) and second, whether the ownership structure (institutional ownership and second large ownership) as good corporate governance system intensify the effect of tax avoidance on the COD. I find a negative relationship between tax avoidance and cost of debt. This result is consistent with previous research and in support of the trade-off hypothesis. Further examination on the relationship between the tax avoidance and cost of debt involving ownership structure reveals that this negative relationship is not impacted by the ownership structure employed by the firms. Both the proxies of ownership structure, namely institutional ownership and second large ownership, are not able to impact on the strong relation exist between the tax avoidance and the cost of debt.

Dipresentasikan pada The 25th Asian-Pacific Conference on International Accounting Issues, Grand Hyatt, Nusa Dua – Bali, Indonesia, 10 – 13 November 2013. Tax Avoidance Cost of Financing

Latest Topics

Akuntansi New Normal: Peluang dan Riset

Pandemi Covid-19 kenyataan yang harus diterima dengan kesabaran. Covid-19 adalah takdirNya yang harus diterima dengan [Read More]

Analysis of the Quality of Performance Report of the Local Government on Websites: Indonesian Case

Sasono Adi, Dwi Martani, Bambang Pamungkas dan Robert A. Simanjuntak Abstract The study aims to assess the quality of [Read More]

Ketika Ramadhan Berakhir

Ramadhan telah berakhir, setelah itu apa yang akan kita lakukan? Ramadhan dibentangkan sebagai waktu untuk melatih diri [Read More]

Overview Standar

Berikut slide ringkas PSAK Perkembangan PSAK 03102018 Contoh Soal AKT KONTEMPORER_PSAK 2019   [Read More]

Perpajakan 1

Berikut materi dan bahan kuliah Perpajakan 1 contoh soal susah contoh soal uas pajak 1 contoh soal uts pajak 1 Formulir [Read More]

Popular Topics

Dokumen Publikasi puisi