The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country
Purpose: This paper aims to study the impact of the adoption of eXtensible Business Reporting Language (XBRL) on corporate tax avoidance. Design/methodology/approach: This paper used a quantitative method with panel data regression models using a sample of firms listed on the Indonesia Stock Exchang...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Group Holdings Ltd.
2022
|
| Subjects: | |
| Online Access: | https://repository.ugm.ac.id/282004/1/The%20effect%20of%20XBRL%20adoption%20on%20corporate%20tax%20avoidance-%20empirical%20evidence%20from%20an%20emerging%20country.pdf |
| _version_ | 1826050467605512192 |
|---|---|
| author | Saragih, Arfah Habib Ali, Syaiful |
| author_facet | Saragih, Arfah Habib Ali, Syaiful |
| author_sort | Saragih, Arfah Habib |
| collection | UGM |
| description | Purpose: This paper aims to study the impact of the adoption of eXtensible Business Reporting Language (XBRL) on corporate tax avoidance. Design/methodology/approach: This paper used a quantitative method with panel data regression models using a sample of firms listed on the Indonesia Stock Exchange from 2011 to 2018. Findings: The regression results demonstrate that XBRL implementation does not have any impact on corporate tax avoidance. The results indicate that tax avoidance is not reduced following XBRL adoption. This report shows unexpected and unfavourable outcomes of XBRL financial reporting in a developing country. Research limitations/implications: This study employs a sample of firms from one emerging country only. Practical implications: The study proposes several implications for using XBRL in tax reporting, which may help the tax authorities reduce tax avoidance. Regulators need to develop adequate taxonomies with standardized extensions related to tax information in the XBRL format. They include tax tags from financial statements and tax tags from the disclosure section, to gain more comprehensive corporate tax information. Originality/value: This study proposes and tests an explanation for the effect of XBRL adoption on corporate tax avoidance in the context of a developing country. © 2022, Emerald Publishing Limited. |
| first_indexed | 2024-03-14T00:04:27Z |
| format | Article |
| id | oai:generic.eprints.org:282004 |
| institution | Universiti Gadjah Mada |
| language | English |
| last_indexed | 2024-03-14T00:04:27Z |
| publishDate | 2022 |
| publisher | Emerald Group Holdings Ltd. |
| record_format | dspace |
| spelling | oai:generic.eprints.org:2820042023-11-16T00:55:14Z https://repository.ugm.ac.id/282004/ The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country Saragih, Arfah Habib Ali, Syaiful Public Economics- Taxation and Revenue Purpose: This paper aims to study the impact of the adoption of eXtensible Business Reporting Language (XBRL) on corporate tax avoidance. Design/methodology/approach: This paper used a quantitative method with panel data regression models using a sample of firms listed on the Indonesia Stock Exchange from 2011 to 2018. Findings: The regression results demonstrate that XBRL implementation does not have any impact on corporate tax avoidance. The results indicate that tax avoidance is not reduced following XBRL adoption. This report shows unexpected and unfavourable outcomes of XBRL financial reporting in a developing country. Research limitations/implications: This study employs a sample of firms from one emerging country only. Practical implications: The study proposes several implications for using XBRL in tax reporting, which may help the tax authorities reduce tax avoidance. Regulators need to develop adequate taxonomies with standardized extensions related to tax information in the XBRL format. They include tax tags from financial statements and tax tags from the disclosure section, to gain more comprehensive corporate tax information. Originality/value: This study proposes and tests an explanation for the effect of XBRL adoption on corporate tax avoidance in the context of a developing country. © 2022, Emerald Publishing Limited. Emerald Group Holdings Ltd. 2022 Article PeerReviewed application/pdf en https://repository.ugm.ac.id/282004/1/The%20effect%20of%20XBRL%20adoption%20on%20corporate%20tax%20avoidance-%20empirical%20evidence%20from%20an%20emerging%20country.pdf Saragih, Arfah Habib and Ali, Syaiful (2022) The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country. Journal of Financial Reporting and Accounting. ISSN 1985-2517 https://www.emerald.com/insight/content/doi/10.1108/JFRA-09-2021-0281/full/html 10.1108/JFRA-09-2021-0281 |
| spellingShingle | Public Economics- Taxation and Revenue Saragih, Arfah Habib Ali, Syaiful The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country |
| title | The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country |
| title_full | The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country |
| title_fullStr | The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country |
| title_full_unstemmed | The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country |
| title_short | The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country |
| title_sort | effect of xbrl adoption on corporate tax avoidance empirical evidence from an emerging country |
| topic | Public Economics- Taxation and Revenue |
| url | https://repository.ugm.ac.id/282004/1/The%20effect%20of%20XBRL%20adoption%20on%20corporate%20tax%20avoidance-%20empirical%20evidence%20from%20an%20emerging%20country.pdf |
| work_keys_str_mv | AT saragiharfahhabib theeffectofxbrladoptiononcorporatetaxavoidanceempiricalevidencefromanemergingcountry AT alisyaiful theeffectofxbrladoptiononcorporatetaxavoidanceempiricalevidencefromanemergingcountry AT saragiharfahhabib effectofxbrladoptiononcorporatetaxavoidanceempiricalevidencefromanemergingcountry AT alisyaiful effectofxbrladoptiononcorporatetaxavoidanceempiricalevidencefromanemergingcountry |