Year: 2019
Type: article
Abstract: This study investigates the tax aggressiveness in politically connected companies. Based on the relation-based system, politically connected companies tend to be more tax aggressiveness due to its benefit of being a tax aggressiveness. Using 625 companies-years observations, we reveal that politically connected companies listed in Indonesia Stock Exchange are likely to be more aggressive in tax. Applying the independent t test, however, there is no significant difference between politically connected companies and non-connected companies. The finding also indicate that the profitability is higher for politically connected companies rather than non-connected. Contract to profitability, politically connected companies’ leverage is lower than nonconnected. This study has theoretical and practical implications and they discuss in detail in this article. Keywords: Tax Aggressiveness, politically connected companies, Indonesia
Source: KnE Social Sciences
Institutions: Universitas Putra Indonesia "YPTK", Universitas Bung Hatta
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2934207313