Universitas Indonesia Conferences, International Accounting Conference - 2017

Font Size: 
Analysis of Tax Aggressiveness and Financial Reporting Aggressiveness on Public Companies in Indonesia 2010-2014
Rina Indah Sari Ginting, Dwi Martani

Last modified: 2017-07-06

Abstract


In this paper, we investigate the relationship between tax aggressiveness and financial reporting aggressiveness in Indonesia-listed companies. The sample used in this study were 157 manufacturing and non manufacturing company during 2010-2014 period. Using discretionary permanent differences (DTAX) and abnormal book tax differences (ABTD) as proxies, we find that there is strong positive correlation between tax aggressiveness and financial reporting aggressiveness. This shows that there is no trade off in decisions related to earnings management and tax management. The results also show that ABTD able to measure tax aggressiveness and showed consistent results with  DTAX proxy.


Keywords


tax aggressiveness, financial reporting aggressiveness, financial reporting, permanent differences, abnormal book tax differences

Conference registration is required in order to view papers.