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The influence factors of the complementary level of financial and tax aggressiveness in Indonesia

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  • Salsabila Anggiani Amriza

    (Accounting Department, Faculty of Economics and Business, Universitas Trilogi, Jl. TMP Kalibata No. 1, Jakarta, Indonesia)

  • Nurul Aisyah Rachmawati

    (Accounting Department, Faculty of Economics and Business, Universitas Trilogi, Jl. TMP Kalibata No. 1, Jakarta, Indonesia)

Abstract

This research focus to investigate the effect of audit quality and financial constraint on the complementary level of financial and tax reporting aggressiveness. This research uses binary logistic regression to investigate the effect of audit quality and financial constraint on the complementary level of financial and tax reporting aggressiveness with a sample of 147 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019. This research found that companies with good audit quality have a complementary level of financial and tax reporting aggressiveness that tends to be below. Also, companies that face financial constraints have a higher complementary level of financial reporting and tax aggressiveness. This study presents empirical evidence that supports the view of audit quality and financial constraint’s impact on the complementary level of financial and tax aggressiveness. Although there are many studies that discuss the relationship between financial and tax aggressiveness, there are still few studies that contribute to examine the determinants of the complementary level of financial and tax reporting aggressiveness in Indonesia. Key Words:Financial Reporting Aggressiveness, Tax Aggressiveness, Financial Constraint, Audit Quality, Complementary Level of Financial and Tax Aggressiveness

Suggested Citation

  • Salsabila Anggiani Amriza & Nurul Aisyah Rachmawati, 2021. "The influence factors of the complementary level of financial and tax aggressiveness in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 213-220, September.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:6:p:213-220
    DOI: 10.20525/ijrbs.v10i6.1317
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    References listed on IDEAS

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    1. Chen, Shuping & Chen, Xia & Cheng, Qiang & Shevlin, Terry, 2010. "Are family firms more tax aggressive than non-family firms?," Journal of Financial Economics, Elsevier, vol. 95(1), pages 41-61, January.
    2. Nurul Aisyah Rachmawati & Sidharta Utama & Dwi Martani & Ratna Wardhani, 2019. "Determinants of the complementary level of financial and tax aggressiveness: a cross-country study," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 11(2), pages 145-166.
    3. Nurul Aisyah Rachmawati1 & Sidharta Utama & Dwi Martani & Ratna Wardhani, 2020. "Do Country Characteristics Affect the Complementary Level of Financial and Tax Aggressiveness?," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 16(1), pages 45-62.
    4. Alexandra Fernandes & António Cerqueira & Elísio Brandão, 2017. "Tax and financial reporting aggressiveness: evidence from Europe," FEP Working Papers 597, Universidade do Porto, Faculdade de Economia do Porto.
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