Nurhayati, Nurhayati and Susetyo, Didik and Fuadah, Luk Luk The Effect of Financial Policy on Tax Aggressiveness for Manufacturing Companies Listed at Indonesia Stock Exchange ( Peer Review ). Mykolayiv National Agrarian University. (Unpublished)
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Abstract
Introduction. This study aims to determine the effect of financial policy on tax aggressiveness for manufacturing companies listed at Indonesia Stock Exchange. Financial policy is measured by financial ratios. The financial ratios consist of debt ratio, long-term debt ratio, the market to book ratio, return on assets (ROA) and inventory turnover ratio. Researchers use effective tax rate (ETR) as a measure of corporate tax aggressiveness. The objects of this research were manufacturing companies listed on the Indonesia Stock Exchange period 2013-2016. The number of samples was 64 manufacturing companies. The data used was a combination of time series and cross section data so that it used regression analysis of data panel. Purpose. The purpose of this research to get empirical evidence the influence of financial policy toward tax aggressiveness among manufacturing companies listed on the Indonesia Stock Exchange. Results. The results of this research indicated that the variable of debt ratio, long-term debt ratio, the market to book ratio, return on assets and inventory turnover simultaneously had an effect on tax aggressiveness. Partially, there were only two variables that influenced tax aggressiveness namely debt ratio and return on assets, whereas the long-term debt ratio variable, the market to book ratio and inventory turnover were not significantly influenced tax aggressiveness. Conclusion. If the debt is high, the interest expense will increase, so the tendency of companies to carry out tax aggressiveness will decrease. Financing using debt will increase costs in financial statements that affect the achievement of company profits. Companies with high Market Book Value Ratios tend to reduce costs in financial reporting. In other words, they are more aggressive towards financial statements. Assets are a source of funding from internal capital; therefore, agents try to maximize the management of internal assets in creating corporate profits. Inventory as part of investment is not the right way to implement a strategy to minimize the tax burden. Keywords: the financial ratio; tax aggressiveness; financial policy.
| Item Type: | Other |
|---|---|
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | 01-Faculty of Economics > 62901-Accountant Profession (Profesi) |
| Depositing User: | Luk Luk Fuadah |
| Date Deposited: | 06 Jun 2022 08:09 |
| Last Modified: | 06 Jun 2022 08:09 |
| URI: | http://repository.unsri.ac.id/id/eprint/70957 |
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