Aggressive financial reporting, boards of commissioners, and tax aggressiveness: An insight from Indonesia

2020 ◽  
pp. 15-19
Author(s):  
A. Chariri ◽  
I. Januarti ◽  
E.N.A. Yuyetta ◽  
A.S. Adiwibowo
Keyword(s):  
Financial Reporting ◽  
Tax Aggressiveness ◽  
Aggressive Financial Reporting

scholarly journals The Attenuating Effect of Intelligent Agents and Agent Autonomy on Managers' Ability to Diffuse Responsibility for and Engage in Earnings Management

2020 ◽  
Vol 34 (4) ◽  
pp. 143-164
Author(s):  
Peter C. Kipp ◽  
Mary B. Curtis ◽  
Ziyin Li
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Intelligent Agents ◽  
Autonomous Agents ◽  
Ethical Conduct ◽  
Human Agent ◽  
Perception Of Control ◽  
Reporting Decisions ◽  
Aggressive Financial Reporting

SYNOPSIS Advances in IT suggest that computerized intelligent agents (IAs) may soon occupy many roles that presently employ human agents. A significant concern is the ethical conduct of those who use IAs, including their possible utilization by managers to engage in earnings management. We investigate how financial reporting decisions are affected when they are supported by the work of an IA versus a human agent, with varying autonomy. In an experiment with experienced managers, we vary agent type (human versus IA) and autonomy (more versus less), finding that managers engage in less aggressive financial reporting decisions with IAs than with human agents, and engage in less aggressive reporting decisions with less autonomous agents than with more autonomous agents. Managers' perception of control over their agent and ability to diffuse their own responsibility for financial reporting decisions explain the effect of agent type and autonomy on managers' financial reporting decisions.

scholarly journals The influence factors of the complementary level of financial and tax aggressiveness in Indonesia

2021 ◽  
Vol 10 (6) ◽  
pp. 213-220
Author(s):  
Salsabila Anggiani Amriza ◽  
Nurul Aisyah Rachmawati
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Influence Factors ◽  
Binary Logistic Regression ◽  
Financial Constraint ◽  
Manufacturing Companies ◽  
Tax Aggressiveness ◽  
Tax Reporting ◽  
The Relationship

This research focus to investigate the effect of audit quality and financial constraint on the complementary level of financial and tax reporting aggressiveness. This research uses binary logistic regression to investigate the effect of audit quality and financial constraint on the complementary level of financial and tax reporting aggressiveness with a sample of 147 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019. This research found that companies with good audit quality have a complementary level of financial and tax reporting aggressiveness that tends to be below. Also, companies that face financial constraints have a higher complementary level of financial reporting and tax aggressiveness. This study presents empirical evidence that supports the view of audit quality and financial constraint’s impact on the complementary level of financial and tax aggressiveness. Although there are many studies that discuss the relationship between financial and tax aggressiveness, there are still few studies that contribute to examine the determinants of the complementary level of financial and tax reporting aggressiveness in Indonesia.

Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting

2009 ◽  
Vol 84 (2) ◽  
pp. 467-496 ◽  
Author(s):  
Mary Margaret Frank ◽  
Luann J. Lynch ◽  
Sonja Olhoft Rego
Keyword(s):  
Stock Returns ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Tax Law ◽  
Reporting Incentives ◽  
Reporting Behaviors ◽  
Aggressive Financial Reporting ◽  
Tax Reporting ◽  
Better Than

ABSTRACT: We investigate the association between aggressive tax and financial reporting and find a strong, positive relation. Our results suggest that insufficient costs exist to offset financial and tax reporting incentives, such that nonconformity between financial accounting standards and tax law allows firms to manage book income upward and taxable income downward in the same reporting period. To examine the relation between these aggressive reporting behaviors, we develop a measure of tax reporting aggressiveness that statistically detects tax shelter activity at least as well as, and often better than, other measures. In supplemental stock returns analyses, we confirm that the market overprices financial reporting aggressiveness. We also find that the market overprices tax reporting aggressiveness, but only for firms with the most aggressive financial reporting.

An Examination of Corporate Tax Shelter Participants

2009 ◽  
Vol 84 (3) ◽  
pp. 969-999 ◽  
Author(s):  
Ryan J. Wilson
Keyword(s):  
Financial Reporting ◽  
Abnormal Returns ◽  
Wealth Creation ◽  
Corporate Tax ◽  
Managerial Opportunism ◽  
Reporting Practices ◽  
Tax Shelter ◽  
Ex Post ◽  
Tax Shelters ◽  
Aggressive Financial Reporting

ABSTRACT: Recent evidence suggests that corporate tax shelters have become important corporate instruments for reducing tax burden. Based on a sample of identified tax shelter participants, I develop a profile of the type of firm that likely engages in tax sheltering. The model detects tax shelter participants through the use of variables predicted to be either affected by or associated with tax sheltering. I find that firms actively engaged in tax sheltering exhibit larger ex post book-tax differences and more aggressive financial reporting practices. Using this model of tax shelter firm characteristics, I identify a broad sample of predicted tax shelter firms from the population of firms. I then examine whether tax sheltering is associated with wealth creation for shareholders or with managerial opportunism. I find that active tax shelter firms with strong corporate governance exhibit positive abnormal returns. This finding is consistent with tax sheltering being a tool for wealth creation in well-governed firms.

Does Tax Aggressiveness Reduce Financial Reporting Transparency?

2011 ◽  
Author(s):  
Karthik Balakrishnan ◽  
Jennifer L. Blouin ◽  
Wayne R. Guay
Keyword(s):  
Financial Reporting ◽  
Tax Aggressiveness

scholarly journals The Relation between Aggressive Financial Reporting and Tax Reporting

2012 ◽  
Vol null (43) ◽  
pp. 241-272
Author(s):  
김철환 ◽  
Kyu-An Jeon ◽  
김대현
Keyword(s):  
Financial Reporting ◽  
Aggressive Financial Reporting ◽  
Tax Reporting

scholarly journals AGRESIVITAS PELAPORAN KEUANGAN DAN PENGHINDARAN PAJAK

2021 ◽  
Vol 5 (2) ◽  
pp. 90-101
Author(s):  
Andyan Zakiy Pradhana ◽  
Arif Nugrahanto
Keyword(s):  
Financial Reporting ◽  
Critical Analysis ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Financial Statements ◽  
Financial Reports ◽  
Aggressive Financial Reporting ◽  
High Level ◽  
Business Sectors ◽  
Positive Effect

Identification of tax avoidance is one of the substantial issues for tax authorities. Success in this stage ensure optimal tax compliance. To do that, financial statements become the object of critical analysis. This study seeks to identify the effect of financial statements (aggressive) on tax avoidance. The mineral and coal mining sector is chosen as the sample because it is one of the business sectors with a fairly high level of tax avoidance. There are 26 companies on the IDX that are the samples of this study. By regressing fixed effect panel data in the form of financial reports for 2012-2018, the results show that aggressive financial reporting has a positive effect on tax avoidance. With a confidence level of 99%, every 1% increase in the level of aggressiveness of financial reporting equivalent to an increase in tax avoidance efforts of 4.6%. For tax authorities, these findings can be used to assess the risk of non-compliance by taxpayers.

The Effects of Client Status and the Auditor's Presentation of Multiple Estimation Alternatives on Client Financial Reporting Aggressiveness

2020 ◽  
Vol 32 (2) ◽  
pp. 1-14
Author(s):  
Sanaz Aghazadeh ◽  
Andrew M. Collins ◽  
Chad M. Stefaniak
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Accounting Estimates ◽  
Aggressive Financial Reporting

ABSTRACT Accounting estimates are highly subjective and multiple estimation alternatives often exist for a single account. When addressing audit-related adjustments with clients, auditors must decide whether to discuss all possible estimation alternatives or approach the client with only a single, auditor-preferred estimation alternative. In an experiment with experienced CFOs and controllers, we find clients with relatively higher status (operationalized as those with a CPA license) take more aggressive financial reporting positions when the auditor approaches the client with multiple adjustment options based on various estimation alternatives. Our study provides the first evidence that client status is a significant factor in auditor-client negotiations. We also demonstrate how auditors' approach to client negotiations involving multiple allowable estimation alternatives can influence audit quality.

Tax Disclosures in Financial and CSR Reporting as a Deterrence for Evasion

2021 ◽  
pp. 397-427
Author(s):  
Fábio Albuquerque ◽  
Julija Cassiano Neves
Keyword(s):  
Financial Reporting ◽  
Income Tax ◽  
Academic Research ◽  
Future Research ◽  
Reporting Standards ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Financial Reporting Standards ◽  
Csr Reporting

This chapter is about the mandatory disclosure of income tax as required by international financial reporting standards (IFRS) and standards issued by Portuguese regulatory bodies. The chapter also elaborates the most relevant disclosures from the perspective of corporate social responsibility (CSR). Furthermore, it highlights the most influential CSR reporting standards to answer the question that whether these standards adequately address the issue of income tax payment as a factor of CSR. Finally, it also reviews the international and Portuguese theoretical and empirical academic research available about income taxes and related subjects, such as disclosures, corporate tax as a CSR matter, and tax aggressiveness of corporations. Future research may be conducted geographical reporting of income tax expense and its relationship with the effective tax rate (ETR) and other independent variables.

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