The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk
This study aims to see which measurement of tax aggressiveness is the best in predicting corporate risk. There are various kinds of tax aggressiveness measurements that have been used by many researchers, including Effective Tax Rate (ETR), Cash Effective Tax Rate (CETR), Book Tax Different (BTD), P...
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| Format: | Article |
| Language: | English |
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Muhammadiyah University Press
2021-12-01
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| Series: | Riset Akuntansi dan Keuangan Indonesia |
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| Online Access: | https://journals2.ums.ac.id/index.php/reaksi/article/view/9683 |
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| _version_ | 1849702957689339904 |
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| author | Verani Carolina O Oktavianti |
| author_facet | Verani Carolina O Oktavianti |
| author_sort | Verani Carolina |
| collection | DOAJ |
| description | This study aims to see which measurement of tax aggressiveness is the best in predicting corporate risk. There are various kinds of tax aggressiveness measurements that have been used by many researchers, including Effective Tax Rate (ETR), Cash Effective Tax Rate (CETR), Book Tax Different (BTD), Permanent Book Tax Different (PBTD), Discretionary Permanent Different (DTAX), and Abnormal Book Tax Different (ABTD). This study used a sample of manufacturing companies listed on the Indonesia Stock Exchange. The data processing method used is Confirmatory Factor Analysis to see which measurement is the best in predicting corporate risk. The results showed that tax aggressiveness can predict corporate risk, and DTAX is the best measurement in predicting corporate risk. DTAX is the best measurement because of it’s ability to capture conforming tax avoidance doing by companies (unlike other measurements that only capture non-conforming tax avoidance). |
| format | Article |
| id | doaj-art-e5ccbc4494044ecf9c9ab26a507a9500 |
| institution | DOAJ |
| issn | 2541-6111 |
| language | English |
| publishDate | 2021-12-01 |
| publisher | Muhammadiyah University Press |
| record_format | Article |
| series | Riset Akuntansi dan Keuangan Indonesia |
| spelling | doaj-art-e5ccbc4494044ecf9c9ab26a507a95002025-08-20T03:17:27ZengMuhammadiyah University PressRiset Akuntansi dan Keuangan Indonesia2541-61112021-12-0131031810.23917/reaksi.v6i3.163839746The Best Measurement of Tax Aggressiveness in Predicting Corporate RiskVerani Carolina0O Oktavianti1Program Studi Akuntansi, Fakultas Bisnis, Universitas Kristen MaranathaProgram Studi Akuntansi, Fakultas Bisnis, Universitas Kristen MaranathaThis study aims to see which measurement of tax aggressiveness is the best in predicting corporate risk. There are various kinds of tax aggressiveness measurements that have been used by many researchers, including Effective Tax Rate (ETR), Cash Effective Tax Rate (CETR), Book Tax Different (BTD), Permanent Book Tax Different (PBTD), Discretionary Permanent Different (DTAX), and Abnormal Book Tax Different (ABTD). This study used a sample of manufacturing companies listed on the Indonesia Stock Exchange. The data processing method used is Confirmatory Factor Analysis to see which measurement is the best in predicting corporate risk. The results showed that tax aggressiveness can predict corporate risk, and DTAX is the best measurement in predicting corporate risk. DTAX is the best measurement because of it’s ability to capture conforming tax avoidance doing by companies (unlike other measurements that only capture non-conforming tax avoidance).https://journals2.ums.ac.id/index.php/reaksi/article/view/9683tax aggressivenessconforming tax avoidancenon-conforming tax avoidancecorporate risk |
| spellingShingle | Verani Carolina O Oktavianti The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk Riset Akuntansi dan Keuangan Indonesia tax aggressiveness conforming tax avoidance non-conforming tax avoidance corporate risk |
| title | The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk |
| title_full | The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk |
| title_fullStr | The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk |
| title_full_unstemmed | The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk |
| title_short | The Best Measurement of Tax Aggressiveness in Predicting Corporate Risk |
| title_sort | best measurement of tax aggressiveness in predicting corporate risk |
| topic | tax aggressiveness conforming tax avoidance non-conforming tax avoidance corporate risk |
| url | https://journals2.ums.ac.id/index.php/reaksi/article/view/9683 |
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