Bankruptcy risk, board independence, and tax avoidance: An empirical study on non-manufacturing public companies

Damar Gita Lestari, Siti Nuryanah, Sardar M.N. Islam

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

This study examines the relationship between bankruptcy risk and tax avoidance, with the moderating effect of supervisory board independence on the relationship. This study was conducted by taking a sample from a developing country i.e. Indonesia due to its specific two-board system characteristics and related to tax regime. This study is a quantitative study using a regression analysis. Data are collected specifically from non-manufacturing public listed companies during 2014-2016. The results of the study show that there is a significant negative effect of the bankruptcy risk on tax avoidance. This study however cannot find the moderating effect of supervisory board independence on the negative effect of bankruptcy risk on tax avoidance. This study brings an implication specific to nonmanufacturing companies related to the effect of bankruptcy risk on company's tax avoidance.

Original languageEnglish
Title of host publicationProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
Subtitle of host publicationEducation Excellence and Innovation Management through Vision 2020
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages7919-7929
Number of pages11
ISBN (Electronic)9780999855126
Publication statusPublished - 1 Jan 2019
Event33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 - Granada, Spain
Duration: 10 Apr 201911 Apr 2019

Publication series

NameProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020

Conference

Conference33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
Country/TerritorySpain
CityGranada
Period10/04/1911/04/19

Keywords

  • Board of commissioners
  • Corporate governance
  • Two-tier board
  • Z-Score

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