FINANCIAL REPORTING AND CORPORATE TAX AGGRESSIVENESS: IMPACT ON FIRM VALUE
This research aims to study the market response to the aggressiveness of financial reporting and tax reporting conducted by the company. Investor’s response is reflected in the market value of the company's stock. This study is an explanatory research using quantitative approach. Research’s sam...
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| Format: | Article |
| Language: | English |
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iVolga Press
2017-08-01
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| Series: | Russian Journal of Agricultural and Socio-Economic Sciences |
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| Online Access: | https://rjoas.com/issue-2017-08/article_04.pdf |
| Summary: | This research aims to study the market response to the aggressiveness of financial reporting and tax reporting conducted by the company. Investor’s response is reflected in the market value of the company's stock. This study is an explanatory research using quantitative approach. Research’s sample is a manufacturing company listed on the Indonesian stock exchanges from 2005 to 2015. The data were analyzed using multiple regression analysis. The data show that majority of sample companies’ fall into the category of middle tax aggressiveness. Research’s findings are both aggressive financial reporting and tax aggressiveness has a negative relationship with the market value of the company. However, only aggressive financial reporting that has a significant influence on the firm value. Based on these results it is concluded that tax aggressiveness does not directly affect the market in making decisions to assess the company's stock. |
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| ISSN: | 2226-1184 |