Abstract
This study aims to provide empirical evidence on the impact of the informal relationship between the CFO and CEO on tax aggressiveness, and the moderating role of business strategy in this relationship. The data used in this study is sourced from companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2022. The informal relationship between the CFO and CEO is measured through social ties and CFO co-option, while tax aggressiveness is measured by book-tax differences. This study also explores how business strategies, categorized as prospector or defender, moderate this relationship. The results indicate that CFO-CEO social ties significantly reduced tax aggressiveness. However, the findings did not support the moderating role of either prospector or defender business strategies in strengthening or weakening this relationship. The implications of these results are relevant for managerial decision-making and academic literature, and suggest directions for future research that consider broader internal and external company dynamics.
Bahasa Abstract
Penelitian ini bertujuan untuk memberikan bukti empiris mengenai pengaruh hubungan informal CFO-CEO terhadap agresivitas pajak dan peran strategi bisnis sebagai moderasi dalam hubungan tersebut. Data yang digunakan berasal dari perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) selama tahun 2020 hingga 2022. Hubungan informal CFO-CEO diukur dengan social ties CFO-CEO dan co-option CFO, sedangkan agresivitas pajak diukur dengan book tax differences. Penelitian ini juga mengeksplorasi bagaimana strategi bisnis, dikategorikan menjadi prospector dan defender, memoderasi hubungan tersebut. Hasil menunjukkan bahwa social ties CFO-CEO secara signifikan menurunkan agresivitas pajak. Namun, hasil penelitian tidak mendukung peran strategi bisnis prospector atau defender dalam memperkuat atau melemahkan hubungan tersebut. Implikasi dari hasil ini relevan bagi pengambilan keputusan manajerial dan literatur akademis, serta menyarankan arah untuk penelitian masa depan yang memperhitungkan dinamika internal dan eksternal perusahaan yang lebih luas.
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Recommended Citation
Khuluqy, Hilmi; Maisaroh, Siti; Rahmiati, Alfa; and Tjaraka, Heru
(2024)
"CFO-CEO INFORMAL TIES, BUSINESS STRATEGY, AND TAX AGGRESSIVENESS,"
Jurnal Akuntansi dan Keuangan Indonesia: Vol. 21:
Iss.
2, Article 3.
DOI: 10.21002/jaki.2024.09
Available at:
https://scholarhub.ui.ac.id/jaki/vol21/iss2/3
