The Role of Corporate Governance in Financial Derivative Utilization for Corporate Tax Avoidance: Evidence from an Emerging Market
- 10.2991/iac-17.2018.24How to use a DOI?
- Financial Derivatives; Tax Avoidance; Speculative; Hedging; Corporate Governance
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.
- © 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/).
Cite this article
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 -