Political connection as a double-edged sword: the case of tax aggressiveness practice during the COVID-19 pandemic
| Autor: | Astrid Rudyanto, Julisar Julisar, Debora Debora |
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| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: | |
| Zdroj: | AJAR (Asian Journal of Accounting Research), Vol 8, Iss 4, Pp 400-410 (2023) |
| Druh dokumentu: | article |
| ISSN: | 2443-4175 2459-9700 |
| DOI: | 10.1108/AJAR-04-2023-0113/full/pdf |
| Popis: | Purpose – This research aims to examine the association between political connection and tax aggressiveness during the COVID-19 pandemic and the role of business ethics in the association between political connection and tax aggressiveness. Design/methodology/approach – This study employs a multiple regression method for 147 manufacturing firms listed on the Indonesia Stock Exchange during the pandemic era. Findings – Political connection has no association with tax aggressiveness. However, political connection has a negative (positive) association with tax aggressiveness in more (less) ethical firms. The results are robust after controlling for year-fixed effects, endogeneity issues and other tax aggressiveness measurements. Originality/value – Political connection is often cited as the driver of unethical business, including tax aggressiveness. However, this paper claims and finds that political connection is a double-edged sword. Ethical firms use political connection to reduce their tax aggressiveness, and vice versa. Previous research has paid little attention to this topic. This paper also uses COVID-19 as a natural experiment to highlight the importance of corporate social responsibility activities as business ethics. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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