The Role of Corporate Governance in Financial Derivative Utilization for Corporate Tax Avoidance: Evidence from an Emerging Market

DOI

10.2991/iac-17.2018.24How to use a DOI?

Keywords

Financial Derivatives; Tax Avoidance; Speculative; Hedging; Corporate Governance

Abstract

This research aims to analyze the role of financial derivatives utilization in corporate tax avoidance, and the moderating role of good corporate governance implementation on this relationship. Using data for non-financial companies listed in the Indonesian Stock Exchange for the period 2012-2014, this research classifies a derivative user as either speculator or effective hedger. The results show that speculator companies exhibit more aggressive tax avoidance than effective hedgers. This research also analyzes the impact of good corporate governance implementation on the relationship between derivatives utilization and corporate tax avoidance levels. The results show that good corporate governance implementation does not significantly reduce the tax avoidance gap between speculator and effective hedger companies.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Chunique Galuh Mayanggara
AU  - Ratna Wardhani
PY  - 2017/08
DA  - 2017/08
TI  - The Role of Corporate Governance in Financial Derivative Utilization for Corporate Tax Avoidance: Evidence from an Emerging Market
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 136
EP  - 141
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.24
DO  - 10.2991/iac-17.2018.24
ID  - Mayanggara2017/08
ER  -