ACCOUNTING & FINANCE CORNER
Monday May 27th 2019

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

Anies Lastiati

Dwi Martani

Abstract

 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

Perkembangan PSAK dan PSAK 46 Akuntansi Pajak Penghasilan

PSAK 46 Akuntansi Pajak Penghasilan, sering dilupakan dalam pembelajaran akuntansi keuangan, namun pada sisi lain Dosen [Read More]

Akuntansi Era 4.0 dan Society 5.0

Era 4.0 ditandai dengan penggunaan teknologi informasi dan big data sebagai alat utama dalam perekonomian dan kehidupan [Read More]

Diskusi PSAK 71, 72 73

Standar baru tidak pernah berhenti untuk didiskusikan. Materi di bawah adalah PPT beberapa standar baru. PSAK 72_71_73 [Read More]

STANDAR AKUNTANSI PEMERINTAHAN DAN SEKTOR PUBLIK

Pemerintah Indonesia menggunakan Standar Akuntansi Pemerintahan dalam menyusun Laporan Keuangan Pemerintah Pusat, [Read More]

Overview PSAK

Belajar PSAK seperti never ending proses, setiap mengajar selalu ada hal baru yang menambah pengetahuan dan memperkuat [Read More]

Popular Topics

Dokumen Publikasi puisi

Pages

Insider

Archives