Research Article
The Effect Of Tax Avoidance Through Earnings Persistence Against Erc: Evidence From Indonesia
@INPROCEEDINGS{10.4108/eai.4-11-2020.2304575, author={Ali Sandy Mulya}, title={The Effect Of Tax Avoidance Through Earnings Persistence Against Erc: Evidence From Indonesia}, proceedings={Proceedings of the First International Conference on Economics, Business and Social Humanities, ICONEBS 2020, November 4-5, 2020, Madiun, Indonesia}, publisher={EAI}, proceedings_a={ICONEBS}, year={2021}, month={2}, keywords={tax avoidance earnings persistence erc}, doi={10.4108/eai.4-11-2020.2304575} }- Ali Sandy Mulya
Year: 2021
The Effect Of Tax Avoidance Through Earnings Persistence Against Erc: Evidence From Indonesia
ICONEBS
EAI
DOI: 10.4108/eai.4-11-2020.2304575
Abstract
To examine the effect of tax avoidance on earnings response coefficient with earnings persistence as an intervening variable. The independent variable used in this study is tax avoidance. The dependent variable in this research is ERC and earnings persistence as an intervening variable. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The research sample was selected using the purposive sampling method and obtained 55 companies, so the number of samples used was 165 samples. Hypothesis testing uses Partial Least Square. RESULTS: This study shows that tax avoidance has no significant effect on stock values but tax avoidance has a significant effect on earnings persistence. While earnings persistence has a positive effect on stock values, then earnings persistence can mediate the relationship between tax avoidance and ERC. It is expected that the company can be more honest and open, as well as good corporate control. Many ways can be done to streamline and streamline the company's activities, but it should also be noted that there are limitations, because the impact of the company's behavior will be felt again by the company itself both in the long and short term.