ISSN: 2225-8329
Open access
As the theory of signals that companies will always give a positive signal so investors are interested, but what about the tax policy taken by the company whether investors react? This research was conducted to determine investor reaction to company policies to comply with tax provisions or not comply with taxation provisions. With regression and comparative analysis, using secondary data from manufacturing companies in Indonesia in 2013-2017, it is known that investors react more significantly to corporate tax non-compliance policies compared to company policies to comply. However, with a positive reaction on tax non-compliance and negative reaction on corporate tax compliance, it indicates that investors in Indonesia are more concerned with the company's short-term performance in the form of current profits compared to long-term performance in the form of future profits which are likely to be affected by tax penalties arising from tax uncompliance.
1. Anggoro, S. & Septiani, A. (2015). Analisis Pengaruh Perilaku Penghindaran Pajak Terhadap Nilai Perusahaan Dengan Transparansi sebagai variabel moderating. Diponegoro Journal of Accounting, Vol. 4, No. 4, Tahun, pp. 2337-3806
2. Appolos, N., Jerry D., & Grace O. (2016). Tax Planning and Firm Value: Empirical Evidence from Nigerian Consumer Goods Industrial Sector. Research Journal of Finance and Accounting, Vol. 7 No. 12.
3. Ariff, A. & Hashim, M.H.A. (2014). Governance and the Value Relevance of Tax Avoidance. Malaysian Accounting Review, Vol. 13 No. 2.
4. Assidi, S., Aliana, K., & Omri M. (2016). Tax optimization and the firm's value: evidence from the Tunisian context. Borsan Istanbul Review, 16-3, 177-184
5. Ayers, B.C., Jiang, J. & Laplante, S.K. (2009). Taxable income as a performance measure: the effect of tax planning and earnings quality. Contemporary Accounting Research, vol. 26 no. 1, pp. 15-54
6. Chen, X., Hu, N. & Wang, X. (2014). Tax Avoidance and Firm Value: evidence from China. Nankai Business Review International, Vol. 5 No. 1, pp. 25-42, DOI 10.1108/NBRI-10-2013-0037
7. Devos, K. (2012). The Impact of Tax Professionals upon the Compliance Behaviour of Australian Individual Tapayers. Revenue Law Journal, 22.1.2
8. Graham, JR., Hanlon, M., Shevlin, T. & Shroff, N. (2014). Incentives for Tax Planning and Avoidance: Evidence from the Field. The Accounting Review 89, No. 3, pp. 991-1023
9. Hsieh, H.S. (2014). The causal relationship between stock returns, trading volume, and volatility. International Journal of Managerial Finance, Vol. 10 Iss. 2, pp. 218-240.
10. Keown, A.J., Martin, J.D, Petty, J.W. & Scott. JR, D.F. (2005). Financial Management. Prentice Hall.
11. Lestari, N. & Wardhani, R. (2015). The effect of the Tax Planning to Firm Value with moderating Board Diversity. International Journal of Economics and Financial Issues, 5, pp. 315-323.
12. Ling, T. & Wahab, N. (2018). Roles of Tax Planning in market valuation of corporate social responsibility. Cogent Business & Management, 5: 1482595.
13. Nugroho, W. & Agustia, D. (2017). Corporate governance, tax avoidance and firm value. AFEBI Accounting Review, vol. 2 no. 2.
14. Ogundajo, G.O. & Onakoya, A.B. (2016). Tax planning and financial performance of Nigerian manufacturing companies. International Journal of Advanced Academic Research, vol. 2, issue 7.
15. Pernamasari, R. (2018). Implementation of Good Corporate Governance and Voluntary Disclosure Compliance: 100 Compass Index Companies Listed Indonesian Stock Exhange (IDX) 2015-2016. International Journal of Academic Research in Accounting, Finance and Management Sciences 8 (2): 235-249.
16. Pradnyana, I.B.G.P. & Noviari, N. (2017). Pengaruh Perencanaan Pajak Terhadap Nilai Perusahaan Dengan Transaparansi Perusahaan sebagai Variabel Moderasi. E-Jurnal Akuntansi Universitas Udayana, Vol. 18, 2.
17. Salawu, R., Ogundipe, L. & Yeye, O. (2017). Granger causality between corporate tax planning and firm value of Non-financial quoted companies in Nigeria. International Journal of Business and Social Science, vol. 8, no. 9.
18. Wahab, N. & Holland, K. (2012). Tax Planning, Corporate Governance and Equity Value. The British Accounting Review, 44, 111-124
19. Yakovlev, P.A. & Davies, D. (2014) How does the estate tax affect the number of firms?, Journal of Entrepreneurship and Public Policy, Vol. 3 Issue: 1, pp. 96-117.
20. Yorke, S., Amidu, M., & Boateng, C. (2016). The effects of earnings management and corporate tax avoidance on firm value. International Journal of Management Practice, Vol. 9, No. 2.
To cite this article: Tarmidi, D. (2019). Tax Compliance and Uncompliance Entity: A Comparative Study of Investor Reaction, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (1): 105-110.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode