Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Financial Constraints, Investment Opportunity Set, Financial Reporting Aggressiveness, Tax Aggressiveness: Evidence from Indonesia Manufacturing Companies

Author(s): Amrie Firmansyah, Reza Bayuaji

This study is aimed to investigate the effect of financial constraints, investment opportunity set, and financial reporting aggressiveness on tax aggressiveness. This research uses the quantitative method. Analysis of this research is conducted by using a multiple linear regression model. The sample used in this study is a non-financial company listed on the Indonesia Stock Exchange (IDX). The type of data used in this study is secondary data in the form of financial statements of companies listed on the Indonesia Stock Exchange from 2011 to 2015. Selected companies data amounted to 88, so the total samples in this study are 440 firms-years by using purposive sampling. The data examined in this study uses multiple regression analysis with panel data. The result of this study suggests that financial constraints are positively associated with tax aggressiveness. Meanwhile, the investment opportunity set is negatively associated with tax aggressiveness. Furthermore, financial reporting aggressiveness is not associated with tax aggressiveness.

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