scholarly journals Designation as the Most Admired Firms to the Sustainable Management of Taxes: Evidence from South Korea

2021 ◽  
Vol 13 (14) ◽  
pp. 7994
Author(s):  
Jaehong Lee ◽  
Suyon Kim ◽  
Eunsoo Kim
Keyword(s):  
Information Asymmetry ◽  
Firm Value ◽  
Sustainable Management ◽  
Corporate Sustainability ◽  
Tax Avoidance ◽  
Information Environment ◽  
Tax Management ◽  
The Relationship ◽  
Positive Effect ◽  
High Information

This study examines whether the designation as the most admired firms affects firms’ tax management behavior. Based on 6880 Korean firms from 2014 to 2018, we regressed to analyze the relationship between the designation as the most admired firms and tax avoidance. Designation as the most admired firm is considered to result in a high reputation, and reputation is one of the intangible assets when assessing the firm value. We found that the firms designated as the most admired firms are reluctant to avoid taxes. Reputable firms are expected to be consistent with their fame. Therefore, those firms are less engaged in unethical or immoral tax avoidance. We also found a positive effect of the index for environmental, social, and governance on the relationship between the designation as the most admired firms and tax avoidance. Environmental, social, and governance activities are the managements’ choice and are a part of corporate activities, whereas firms’ reputations result from enterprise-wide activities. The findings suggest that the designation as the most admired firms with regard to environmental, social, and governance activities is considered highly reputable and results in deciding to improve corporate sustainability in tax management. The relationship between the designation as the most admired firms and tax avoidance is strengthened in an information environment where the firms are Chaebol-affiliated and in high information asymmetry.

scholarly journals PENGARUH PENGHINDARAN PAJAK DAN PERATAAN LABA, TERHADAP NILAI PERUSAHAAN DENGAN KEBIJAKAN HUTANG SEBAGAI VARIABEL PEMODERASI (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Periode 2016 – 2018)

2020 ◽  
Vol 5 (2) ◽  
pp. 139-151
Author(s):  
Frenky Yosua Hangtuah ◽  
Helmi Yazid ◽  
Muhamad Taqi
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
Income Smoothing ◽  
Manufacturing Companies ◽  
Policy Variable ◽  
The Relationship ◽  
Debt Policy ◽  
Positive Effect

This study aims to determine the effect of tax avoidance and income smoothing on the firm value with a debt policy variable as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange which published financial statements for the period 2016-2018. By using purposive sampling technique, 243 company samples were obtained and analyzed using multiple linear regression. The results of this study indicate that (1) tax avoidance does not have a positive effect on firm value (2) Income smoothing has a positive effect on firm value (3) Debt policy as a moderating variable can strengthen the relationship between tax avoidance and firm value. (4) Debt policy as a moderating variable does not significantly strengthen the relationship between income smoothing and firm value.

Securities-Based Crowdfunding by Startups: Does Auditor Attestation Matter?

2021 ◽  
Author(s):  
Jing Gong ◽  
Jayanthi Krishnan ◽  
Yi Liang
Keyword(s):  
Information Asymmetry ◽  
Small Businesses ◽  
Financial Statements ◽  
Future Prospects ◽  
Positive Effect ◽  
High Information

We examine financing outcomes for small businesses seeking to sell public securities in a setting characterized by high information asymmetry, weak requirements for auditor participation, and a complete absence of Big N auditors. Issuers that raise capital from small, unsophisticated investors through crowdfunding, under the Securities and Exchange Commission's Regulation Crowdfunding (RegCF), often need no auditor attestation or need only weak attestation in the form of reviews, not audits, of their financial statements. We find that auditor reviews are positively associated with both the probability of crowdfunding success and the total amount raised. Further, we compare outcomes for issuers that procure auditor reviews voluntarily and mandatorily, and document that issuers with voluntary reviews have better outcomes. We conjecture that, for issuers that voluntarily procure reviews, the reviews serve as signals of high future prospects. Finally, the positive effect of reviews is concentrated in PCAOB-registered auditors.

scholarly journals PENGARUH KONSERVATISME AKUNTANSI DAN PENGHINDARAN PAJAK TERHADAP NILAI PERUSAHAAN

2019 ◽  
Vol 2 (2) ◽  
pp. 134
Author(s):  
Puradinda Zulfiara ◽  
Juli Ismanto
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Accounting Conservatism ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Positive Effect

Aim of this research is to determine the effect of accounting conservatism and tax avoidance on firm value. The type of data used in this study is secondary data in the form of annual reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2016 period. The number of samples is 48 manufacturing companies. The data analysis technique used is regression analysis. The results of the study show that conservatism has a positive effect on firm value, tax avoidance has a negative effect on firm value. While simultaneously conservatism and tax avoidance have a positive effect on firm value. Thus this study supports that accounting conservatism has a role as a function of monitoring the company's investment policies and one way to maintain the value of the company in limiting losses that may arise from poorly performing investment decisions. The company that conducts tax avoidance (has a smaller effective tax rate) is an effort made by management to reduce the company's tax burden and is able to minimize expenditure for tax purposes so that management looks good in the eyes of shareholders.

scholarly journals Pengaruh Pengungkapan Manajemen Risiko Terhadap Nilai Perusahaan Melalui Kinerja Keuangan Di Industri Perbankan Indonesia

Owner ◽  
2020 ◽  
Vol 4 (2) ◽  
pp. 467
Author(s):  
Agung Supriyadi ◽  
Christina Tri Setyorini
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Sampling Method ◽  
Stock Exchange ◽  
Relevant Information ◽  
Government Regulations ◽  
Management Disclosures ◽  
The Relationship ◽  
Positive Effect ◽  
Determining Factor

Investors assess and demand banks to improve their risk management. Then, the profit earned by the bank is not yet known the effect of risk management on firm value. The aim of this study is to determine the effect of risk management disclosures on firm value with profitability as a mediating variable. The population used in this study are all banks listed on the Indonesia Stock Exchange (IDX) in the period of 2016 to 2018. This type of research is a correlational study consisting of thirty-six banks as research samples. Furthermore, the sampling method used in this study was purposive sampling. The results showed that the disclosure of risk management has a positive effect on profitability and firm value. Then, the risks and opportunities in this study can be managed well by the company so that it has a positive effect on increasing the company's profitability. The market implication assumes that risk management disclosures can be used as one of the relevant information to increase the value of the company. However, profitability in this study cannot mediate the relationship between risk management disclosure and firm value. The size of profitability produced in banks in Indonesia is not a determining factor in managing a company's risk management activities. So it can be concluded that risk management is disclosed solely because it fulfills corporate responsibilities and complies with government regulations.

scholarly journals Internal Control Personnel’s Experience, Internal Control Weaknesses, and ESG Rating

2020 ◽  
Vol 12 (20) ◽  
pp. 8645
Author(s):  
Ja Eun Koo ◽  
Eun Sun Ki
Keyword(s):  
Internal Control ◽  
Corporate Sustainability ◽  
Length Of Service ◽  
Listed Firms ◽  
Control Quality ◽  
Efficiency And Effectiveness ◽  
Internal Control Weaknesses ◽  
Accounting Expertise ◽  
The Relationship ◽  
Positive Effect

Effective internal control is expected to have a positive effect on Environmental, Social, and Governance (ESG) ratings, which are an indicator of corporate sustainability, as it ensures improvements in efficiency and effectiveness in operations, reliable reports, and compliance with applicable laws and regulations. However, no matter how well an internal control system is designed, internal control quality deteriorates if internal control (IC) personnel do not understand the firm’s business or lack accounting experience. This study first explores the relationship between ESG ratings and internal control weaknesses (ICWs). We then examine two types of career experience of IC personnel—length of service and accounting experience—and their effect on ICWs. We conduct logit regression analyses using the data of 1876 non-financial listed firms in Korea. The results show that ICW firms have low ESG ratings. We also find that the accounting experience of IC personnel is more closely related to ICWs than the length of service. This implies that the accounting expertise of IC personnel may have a greater effect on internal control quality than the understanding of a firm’s business. Overall, our findings provide evidence that firms must have IC personnel with sufficient accounting expertise for sustainable management.

scholarly journals Examining the Role of Top Management in Corporate Sustainability: Does Supply Chain Position Matter?

2020 ◽  
Vol 12 (18) ◽  
pp. 7518 ◽  
Author(s):  
Zhasmina Tacheva ◽  
Natalie Simpson ◽  
Anton Ivanov
Keyword(s):  
Supply Chain ◽  
Corporate Sustainability ◽  
Top Management ◽  
Sustainability Research ◽  
Business To Consumer ◽  
Sustainability Initiatives ◽  
The Relationship ◽  
Business To Business ◽  
Positive Effect

A burgeoning stream of sustainability research explores the role of companies’ top management team (TMT) characteristics in corporate sustainability efforts, while another stream investigates the effect of a company’s supply chain position on its likelihood of engaging in sustainability. This study shows the importance of integrating the two research streams by demonstrating that supply chain position moderates the relationship between TMT characteristics and sustainability and thus establishes boundary conditions for this relationship. By matching 758 corporate sustainability initiatives with control observations, our results show that the size of the top executive team and the average age of its members, two well-known predictors of corporate sustainability, are distinctly moderated by supply chain position. While business-to-business (B2B) companies are less likely to report a sustainability initiative compared to business-to-consumer (B2C) organizations, we found that B2B TMT size has a greater positive effect on sustainability initiative likelihood than B2C TMT size. Conversely, average B2C TMT age has greater predictive power in explaining sustainability initiative likelihood than average B2B TMT age. The implications of these findings in advancing corporate sustainability and organizational change are discussed.

Do Antitakeover Provisions Spur Corporate Innovation? A Regression Discontinuity Analysis

2018 ◽  
Vol 53 (3) ◽  
pp. 1163-1194 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Xuan Tian
Keyword(s):  
Information Asymmetry ◽  
Firm Value ◽  
Regression Discontinuity ◽  
Causal Effect ◽  
Equity Markets ◽  
Short Term ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
Positive Effect ◽  
Competitive Product

We study the effect of antitakeover provisions (ATPs) on innovation. To establish causality, we use a regression discontinuity approach that relies on locally exogenous variation generated by shareholder proposal votes. We find a positive, causal effect of ATPs on innovation. This positive effect is more pronounced in firms that are subject to a larger degree of information asymmetry and operate in more competitive product markets. The evidence suggests that ATPs help nurture innovation by insulating managers from short-term pressures arising from equity markets. Finally, the number of ATPs contributes positively to firm value for firms involved in intensive innovation activities.

scholarly journals The Relationship between LGBT Executives and Firms’ Value and Financial Performance

2021 ◽  
Vol 14 (12) ◽  
pp. 596
Author(s):  
Isabel Costa Lourenço ◽  
Donatella Di Marco ◽  
Manuel Castelo Branco ◽  
Ana Isabel Lopes ◽  
Raquel Wille Sarquis ◽  
...  
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Indirect Effect ◽  
Indirect Effects ◽  
Firm Value ◽  
Direct And Indirect Effects ◽  
Leadership Positions ◽  
The Relationship ◽  
Positive Effect ◽  
Policies And Practices

Drawing on resource-based theory, we analyze the relationship between having LGBT executives in a firm’s leadership positions and its value and financial performance. The existence of LGBT executives is considered to be associated with employee and customer goodwill towards LGBT-friendly policies and practices and to lead to human capital and reputational benefits. Our findings suggest that there is a positive effect of the presence of LBGT executives on a firm’s value, both directly and indirectly, through its effect on the firm’s financial performance. We interpret this as suggesting that besides the direct effect of the existence of LGBT executives on a firm’s value, an indirect effect also exists, mediated through financial performance, presumably through the effect that this has on employee and customer goodwill towards LGBT-friendly policies and practices. As far as we are aware, our study is the first to examine the impacts of the presence of LGBT executives, as well as distinguish between its direct and indirect effects on firm value.

scholarly journals ANALISIS PENGARUH CORPORATE SOCIAL RESPONSIBILITY, TAX AVOIDANCE TERHADAP NILAI PERUSAHAAN DENGAN KEPEMILIKAN ASING SEBAGAI VARIABEL MODERASI PADA PERUSAHAAN MANUFAKTUR DI BEI PERIODE 2016 - 2018

2020 ◽  
Vol 13 (1) ◽  
Author(s):  
Nikki Kwok ◽  
Andi Gunawan Kwok
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Foreign Ownership ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Corporate Social ◽  
The Relationship

Abstract: The main goal of the company is to maximize prosperity for shareholders, this can be achieved by maximizing the value of the company. This research was conducted to determine the factors that influence the value of the company to be studied are Corporate Social Responsibility and Tax Avoidance. The moderating variable in this study is Foreign Ownership. The sample of this research is manufacturing companies whose shares are listed on the Indonesia Stock Exchange for the period of 2016-2018 using purposive sampling method. While the analytical method used is the classic assumption test and hypothesis testThe results of this study indicate that corporate social responsibility has no influence on firm value, and tax avoidance has an influence on firm value. Foreign ownership is not able to be a moderating variable that strengthens the relationship between corporate social responsibility and corporate value while foreign ownership is able to be a moderating variable that strengthens the relationship between tax avoidance and firm value. Keywords: Firm value, Corporate Social Responsibility, Tax Avoidance and Foreign Ownership Abstrak: Tujuan utama perusahaan adalah untuk memaksimalkan kemakmuran bagi pemegang saham, hal ini dapat dicapai dengan memaksimalkan nilai perusahaan. Penelitian ini dilakukan untuk mengetahui faktor-faktor yang mempengaruhi nilai perusahaan yang akan diteliti adalah Corporate Social Responsibility dan Tax Avoidance. Variabel Moderating pada penelitian ini adalah Kepemilikan Asing.Sampel penelitian ini adalah perusahaan manufaktur yang sahamnya terdaftar di Bursa Efek Indonesia periode 2016-2018 dengan menggunakan metode purposive sampling. Sedangkan metode analisis yang digunakan adalah uji asumsi klasik dan uji hipotesis. Hasil penelitian ini menunjukkan bahwa corporate social responsibility tidak memiliki pengaruh terhadap nilai perusahaan, dan tax avoidance memiliki pengaruh terhadap nilai perusahaan. Kepemilikan asing tidak mampu menjadi variabel moderating yang memperkuat hubungan antara corporate social responsibility dengan nilai perusahaan sedangkan Kepemilikan asing mampu menjadi variabel moderating yang memperkuat hubungan antara tax avoidance dengan nilai perusahaan. Kata Kunci: Nilai Perusahaan, Corporate Social Responsibility, Tax Avoidance dan Kepemilikan Asing.

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