The Effect of Profitability, Foreign Activity, and Hedging on Tax Avoidance with Executive Character as Moderating Variables

Siregar, Puteri Cinta Annisa and Saputri, Gita Darin Kurnia and Nowindra, IGB and Farhanah, Afifah and Darmawati, Deni (2022) The Effect of Profitability, Foreign Activity, and Hedging on Tax Avoidance with Executive Character as Moderating Variables. In: LePALISSHE 2021, 3 August 2021, Malang, Indonesia.

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Abstract

This quantitative study determined the effect of profitability, foreign activity, and hedging on tax avoidance with executive characteristics as a moderating variable. Samples were 16 multinational companies listed on the Indonesia Stock Exchange from 2017 to 2019 with hedging transactions. They were chosen purposively and observed for three years, so the study had 48 samples in total. Data were analyzed using multiple regression analysis. The results showed that profitability negatively affected tax avoidance, foreign activity positively affected tax avoidance, and hedging positively affected tax avoidance. Findings confirmed that executives with a risk-taker characteristic could weaken the negative effect of profitability on tax avoidance and weaken the positive influence of foreign activity on tax avoidance. It indicated that executives with a risk-taker characteristic might conduct tax avoidance practices in companies with high foreign transaction activities. Executives with a risk-taker characteristic had no influence on the relationship between hedging and tax avoidance.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: profitability; foreign activity; hedging; tax avoidance; executive characteristics
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 29 Mar 2022 08:19
Last Modified: 29 Mar 2022 08:19
URI: https://eprints.eudl.eu/id/eprint/9953

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