Tax avoidance behaviour towards the cost of debt

Indah Masri, Dwi Martani

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


The aim of the research is to analyse tax avoidance behaviour to cost of debt (COD) moderated by tax rate changes and family ownership structure. The research used the sample manufacturing firms in Indonesia Stock Exchange for the period 2008-2010. The study finds that tax avoidance has positive influence on COD. Tax avoidance creates a risk thereby increasing the COD. In the period before tax rate reduction, the influence of tax avoidance on COD is smaller compared with the period after tax reduction; this indicates the presence of earning management conducted by the company before tax rate reduction. Family ownership structure causes greater influence over tax avoidance on COD; this shows that family ownership increases tax aggressive behaviour. The results of this research are contrary with the research conducted by Lim (2011), which shows negative relationship between tax avoidance and the COD.

Original languageEnglish
Pages (from-to)235-249
Number of pages15
JournalInternational Journal of Trade and Global Markets
Issue number3
Publication statusPublished - 2014


  • Cost of debt
  • Family ownership
  • Tax avoidance
  • Tax rates change


Dive into the research topics of 'Tax avoidance behaviour towards the cost of debt'. Together they form a unique fingerprint.

Cite this