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

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

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

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

Department of Accounting

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-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 language	English
Title of host publication	Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
Subtitle of host publication	Education Excellence and Innovation Management through Vision 2020
Editors	Khalid S. Soliman
Publisher	International Business Information Management Association, IBIMA
Pages	7919-7929
Number of pages	11
ISBN (Electronic)	9780999855126
Publication status	Published - 1 Jan 2019
Event	33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 - Granada, Spain Duration: 10 Apr 2019 → 11 Apr 2019

Publication series

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

Conference

Conference	33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
Country/Territory	Spain
City	Granada
Period	10/04/19 → 11/04/19

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure
SDG 17 Partnerships for the Goals

Keywords

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

Cite this

Lestari, D. G., Nuryanah, S., & Islam, S. M. N. (2019). Bankruptcy risk, board independence, and tax avoidance: An empirical study on non-manufacturing public companies. In K. S. Soliman (Ed.), Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020 (pp. 7919-7929). (Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020). International Business Information Management Association, IBIMA.

Lestari, Damar Gita ; Nuryanah, Siti ; Islam, Sardar M.N. / Bankruptcy risk, board independence, and tax avoidance : An empirical study on non-manufacturing public companies. Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020. editor / Khalid S. Soliman. International Business Information Management Association, IBIMA, 2019. pp. 7919-7929 (Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020).

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

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.",

keywords = "Board of commissioners, Corporate governance, Two-tier board, Z-Score",

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editor = "Soliman, \{Khalid S.\}",

booktitle = "Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019",

note = "33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 ; Conference date: 10-04-2019 Through 11-04-2019",

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Lestari, DG, Nuryanah, S & Islam, SMN 2019, Bankruptcy risk, board independence, and tax avoidance: An empirical study on non-manufacturing public companies. in KS Soliman (ed.), Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020. Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020, International Business Information Management Association, IBIMA, pp. 7919-7929, 33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019, Granada, Spain, 10/04/19.

Bankruptcy risk, board independence, and tax avoidance: An empirical study on non-manufacturing public companies. / Lestari, Damar Gita; Nuryanah, Siti; Islam, Sardar M.N.
Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020. ed. / Khalid S. Soliman. International Business Information Management Association, IBIMA, 2019. p. 7919-7929 (Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Bankruptcy risk, board independence, and tax avoidance

T2 - 33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019

AU - Lestari, Damar Gita

AU - Nuryanah, Siti

AU - Islam, Sardar M.N.

PY - 2019/1/1

Y1 - 2019/1/1

N2 - 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.

AB - 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.

KW - Board of commissioners

KW - Corporate governance

KW - Two-tier board

KW - Z-Score

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T3 - Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020

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BT - Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019

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ER -

Lestari DG, Nuryanah S, Islam SMN. Bankruptcy risk, board independence, and tax avoidance: An empirical study on non-manufacturing public companies. In Soliman KS, editor, Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020. International Business Information Management Association, IBIMA. 2019. p. 7919-7929. (Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020).

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

Abstract

Publication series

Conference

UN SDGs

Keywords

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