The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable
This research examines the effect of diversification strategy on corporate tax aggressiveness activities with board effectiveness as the moderating variable. This study brings a context of the ASEAN Economic Community (AEC), which is argued inducing diversification strategies taken by companies in A...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2023-07-01
|
| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440231189169 |
| _version_ | 1827889091972169728 |
|---|---|
| author | Rilo Pramudito Siti Nuryanah |
| author_facet | Rilo Pramudito Siti Nuryanah |
| author_sort | Rilo Pramudito |
| collection | DOAJ |
| description | This research examines the effect of diversification strategy on corporate tax aggressiveness activities with board effectiveness as the moderating variable. This study brings a context of the ASEAN Economic Community (AEC), which is argued inducing diversification strategies taken by companies in ASEAN countries. A sample from a developing country, that is, Indonesia, is collected due to this country’s specific characteristics related to tax regimes. Therefore, 246 observations from non-financial listed companies from 2014 to 2016 are used. The findings show that the firms with an international diversification strategy positively associate with corporate tax aggressiveness. On the other hand, companies conducting industrial diversification strategies were found to have ineffective tax management. The study also found an ineffective board of commissioners in the condition of corporate tax aggressiveness and ineffective tax management. This study brings some practical implications that the government needs to evaluate its tax policy while business practitioners must choose a business strategy congruent with tax management. |
| first_indexed | 2024-03-12T20:50:08Z |
| format | Article |
| id | doaj.art-6b10a982c6944ab4b5e00b3012f6a304 |
| institution | Directory Open Access Journal |
| issn | 2158-2440 |
| language | English |
| last_indexed | 2024-03-12T20:50:08Z |
| publishDate | 2023-07-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj.art-6b10a982c6944ab4b5e00b3012f6a3042023-08-01T05:03:27ZengSAGE PublishingSAGE Open2158-24402023-07-011310.1177/21582440231189169The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating VariableRilo Pramudito0Siti Nuryanah1Universitas Indonesia, Depok, IndonesiaUniversitas Indonesia, Depok, IndonesiaThis research examines the effect of diversification strategy on corporate tax aggressiveness activities with board effectiveness as the moderating variable. This study brings a context of the ASEAN Economic Community (AEC), which is argued inducing diversification strategies taken by companies in ASEAN countries. A sample from a developing country, that is, Indonesia, is collected due to this country’s specific characteristics related to tax regimes. Therefore, 246 observations from non-financial listed companies from 2014 to 2016 are used. The findings show that the firms with an international diversification strategy positively associate with corporate tax aggressiveness. On the other hand, companies conducting industrial diversification strategies were found to have ineffective tax management. The study also found an ineffective board of commissioners in the condition of corporate tax aggressiveness and ineffective tax management. This study brings some practical implications that the government needs to evaluate its tax policy while business practitioners must choose a business strategy congruent with tax management.https://doi.org/10.1177/21582440231189169 |
| spellingShingle | Rilo Pramudito Siti Nuryanah The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable SAGE Open |
| title | The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable |
| title_full | The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable |
| title_fullStr | The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable |
| title_full_unstemmed | The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable |
| title_short | The Effect of Diversification Strategy on Corporate Tax Aggressiveness With Board Effectiveness as the Moderating Variable |
| title_sort | effect of diversification strategy on corporate tax aggressiveness with board effectiveness as the moderating variable |
| url | https://doi.org/10.1177/21582440231189169 |
| work_keys_str_mv | AT rilopramudito theeffectofdiversificationstrategyoncorporatetaxaggressivenesswithboardeffectivenessasthemoderatingvariable AT sitinuryanah theeffectofdiversificationstrategyoncorporatetaxaggressivenesswithboardeffectivenessasthemoderatingvariable AT rilopramudito effectofdiversificationstrategyoncorporatetaxaggressivenesswithboardeffectivenessasthemoderatingvariable AT sitinuryanah effectofdiversificationstrategyoncorporatetaxaggressivenesswithboardeffectivenessasthemoderatingvariable |