The self-assessment system tends to provide a loophole for companies to reduce tax payment. The great benefit of the tax to the community links tax with social responsibility. This study aims to investigate the effect of environmental responsibility performance and social responsibility disclosure on tax aggressiveness as well as the role of corporate governance in moderating these effects. The analysis in this study was conducted on 34 non-financial companies listed on the Indonesia Stock Exchange and were participants of 2014-2018 PROPER selected using purposive sampling so that 170 observations were obtained. This study employs two-panel data regression models, namely models with and without corporate governance, as a moderating variable. The result suggests that environmental responsibility performance and social responsibility disclosure are negatively associated with tax aggressiveness. However, corporate governance fails to strengthen these negative influences

This research is aimed to provide empirical evidence about relationship between political connection, foreign activity, and real earnings management on tax avoidance. Hanlon Heitzman (2010) defines tax avoidance as a continuum tax planning strategis to reduce the explicit taxes. Using purposive sampling, this research selects manufacturing companies that are listed in Indonesian Stock Exchange (IDX) in the period 2010-2015 as samples. Selected company data amounted to 65, so the total observation in this study are 365 firm-years. The data examination in this study uses multiple regression analysis with dated panel.The results of this study indicate that real earnings management has no significant effect on tax avoidance. These results mean that real earnings management conducted by the company can not detect tax avoidance activities undertaken by manufacturing firms in IDX. Meanwhile, political connections have a significant positive effect on tax avoidance, meaning that the average company uses its political connections to lower tax payments. Furthermore, a branch or subsidiary-like company can be used by companies to avoid more taxes by utilizing foreign activities stick to them to reduce taxes through profit shifting schemes as well as profit holding as evidenced by a significant positive effect. Keywords: earnings management; foreign activity; political connection; tax avoidance. Abstrak. Penelitian ini bertujuan untuk memberikan bukti empiris terkait hubungan antara koneksi politik, aktivitas luar negeri, dan manajemen laba riil terhadap praktik penghindaran pajak. Hanlon Heitzman (2010) mendefinisikan penghindaran pajak sebagai perencanaan pajak yang kontinu untuk mengurangi pajak eksplisit. Dengan menggunakan metode purposive sampling, penelitian ini memilih perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) pada periode 2010-2015 sebagai sampel. Data perusahaan terpilih berjumlah 65, sehingga total pengamatan dalam penelitian ini adalah 365 perusahaan-tahun. Metode pengujian dalam penelitian ini menggunakan analisis regresi berganda dengan data panel. Hasil penelitian ini menunjukkan bahwa manajemen laba riil tidak berpengaruh signifikan terhadap penghindaran pajak. Hasil ini menunjukkan bahwa manajemen laba riil yang dilakukan oleh perusahaan tidak dapat mendeteksi kegiatan penghindaran pajak yang dilakukan oleh perusahaan manufaktur di Bursa Efek Indonesia (BEI). Sementara itu, hubungan politik memiliki dampak positif yang signifikan terhadap penghindaran pajak, yang berarti rata-rata perusahaan menggunakan koneksi politiknya untuk mendapatkan pembayaran pajak yang lebih rendah. Perusahaan cabang atau anak perusahaan dapat digunakan oleh perusahaan untuk lebih menghindari pajak dengan memanfaatkan aktivitas luar negeri yang melekat pada mereka untuk mengurangi pajak melalui skema profit shifting serta profit holding sebagaimana dibuktikan oleh hasil penelitian. Kata Kunci: koneksi politik; aktivitas luar negeri; manajemen laba; penghindaran pajak. This research is aimed to provide empirical evidence about relationship between political connection, foreign activity, and real earnings management on tax avoidance. Hanlon Heitzman (2010) defines tax avoidance as a continuum tax planning strategis to reduce the explicit taxes. Using purposive sampling, this research selects manufacturing companies that are listed in Indonesian Stock Exchange (IDX) in the period 2010-2015 as samples. Selected company data amounted to 65, so the total observation in this study are 365 firm-years. The data examination in this study uses multiple regression analysis with dated panel.The results of this study indicate that real earnings management has no significant effect on tax avoidance. These results mean that real earnings management conducted by the company can not detect tax avoidance activities undertaken by manufacturing firms in IDX. Meanwhile, political connections have a significant positive effect on tax avoidance, meaning that the average company uses its political connections to lower tax payments. Furthermore, a branch or subsidiary-like company can be used by companies to avoid more taxes by utilizing foreign activities stick to them to reduce taxes through profit shifting schemes as well as profit holding as evidenced by a significant positive effect. Keywords: earnings management; foreign activity; political connection; tax avoidance. Abstrak. Penelitian ini bertujuan untuk memberikan bukti empiris terkait hubungan antara koneksi politik, aktivitas luar negeri, dan manajemen laba riil terhadap praktik penghindaran pajak. Hanlon Heitzman (2010) mendefinisikan penghindaran pajak sebagai perencanaan pajak yang kontinu untuk mengurangi pajak eksplisit. Dengan menggunakan metode purposive sampling, penelitian ini memilih perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) pada periode 2010-2015 sebagai sampel. Data perusahaan terpilih berjumlah 65, sehingga total pengamatan dalam penelitian ini adalah 365 perusahaan-tahun. Metode pengujian dalam penelitian ini menggunakan analisis regresi berganda dengan data panel. Hasil penelitian ini menunjukkan bahwa manajemen laba riil tidak berpengaruh signifikan terhadap penghindaran pajak. Hasil ini menunjukkan bahwa manajemen laba riil yang dilakukan oleh perusahaan tidak dapat mendeteksi kegiatan penghindaran pajak yang dilakukan oleh perusahaan manufaktur di Bursa Efek Indonesia (BEI). Sementara itu, hubungan politik memiliki dampak positif yang signifikan terhadap penghindaran pajak, yang berarti rata-rata perusahaan menggunakan koneksi politiknya untuk mendapatkan pembayaran pajak yang lebih rendah. Perusahaan cabang atau anak perusahaan dapat digunakan oleh perusahaan untuk lebih menghindari pajak dengan memanfaatkan aktivitas luar negeri yang melekat pada mereka untuk mengurangi pajak melalui skema profit shifting serta profit holding sebagaimana dibuktikan oleh hasil penelitian. Kata Kunci: koneksi...

This study aims to examine the effect of tax avoidance, corporate social responsibility disclosures, and risk disclosures on investment efficiency. This study also examines the role of corporate governance in the association between tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency. This study uses multiple linear regression with panel data. The sample uses 43 manufacturing companies listed on the Indonesian Securities Exchange from 2014 up to 2017 so that the total sample in this study amounted to 172 firm-years. The result suggests that tax avoidance is negatively associated with investment efficiency. However, corporate social responsibility disclosures and risk disclosures do not affect investment efficiency. Furthermore, another result suggests that corporate governance failed to moderate the effect of tax avoidance on investment efficiency. Besides, corporate governance can weaken the negative influence of corporate social responsibility disclosures on investment efficiency as well as corporate governance drives the negative effect of risk disclosures on investment efficiency.

This study aims to investigate the effect of net income volatility, other comprehensive income volatility, and comprehensive income volatility on idiosyncratic volatility. Also, this study includes derivative transactions as moderation variable in testing the equation model. The hypothesis test employed multiple linear regression. The sample in this study is all non-financial companies listed on the Indonesia Stock Exchange from 2012 to 2017. Data used in this study are panel data sourced from www.idx.co.id and www.finance.yahoo.com. The sample selection in this study used a purposive sampling method with a total sample of 246 observations. The results of this study indicate that comprehensive income volatility, net income volatility, and other comprehensive income volatility are not associated with idiosyncratic volatility. Based on the test results suggest that the interaction between derivative transactions and comprehensive income volatility, net income volatility, as well as other comprehensive income volatility, have a positive effect on idiosyncratic volatility.

Determinants of transfer pricing decisions in Indonesia manufacturing companies