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Corporate earnings management post-implementation of thin capitalization rule in Indonesia
| Content Provider | Scilit |
|---|---|
| Author | Purwanti, Dyah Saputra, Akbar |
| Copyright Year | 2020 |
| Description | This study investigates the effectiveness of the thin capitalization rule recently enacted in Indonesia, effective per the fiscal year of 2016, by measuring the correlation between earnings management activity and corporate tax avoidance. We analyzed the financial reports of some selected public companies that are indicated for underpayment of their taxes, from 2014 until 2017, by using the Tax Underpayment Assessment Letter as indicators. The result shows that the implementation of the Decree is positively and significantly correlated to corporate tax avoidance. The use of discretionary expenses in earnings management activity is positively and significantly correlated to corporate tax avoidance in both the years before and after the implementation of the Decree. Based on these findings, we concluded that the Decree had not been properly implemented to reduce corporate tax avoidance. Book Name: Public Sector Accountants and Quantum Leap: How Far We Can Survive in Industrial Revolution 4.0? |
| Related Links | https://content.taylorfrancis.com/books/download?dac=C2019-0-07172-6&isbn=9780367822965&doi=10.1201/9780367822965-50&format=pdf |
| Ending Page | 249 |
| Page Count | 5 |
| Starting Page | 245 |
| DOI | 10.1201/9780367822965-50 |
| Language | English |
| Publisher | Informa UK Limited |
| Publisher Date | 2020-08-07 |
| Access Restriction | Open |
| Subject Keyword | Book Name: Public Sector Accountants and Quantum Leap: How Far We Can Survive in Industrial Revolution 4.0? Implementation Capitalization Avoidance Indonesia Earnings Management Corporate Decree Underpayment |
| Content Type | Text |
| Resource Type | Chapter |
