The Determinants of Corporate Tax Aggressiveness

Tax-related research is a matter of great interest to researchers over the past decade. Several researchers have attempted to study factors that affect corporate tax aggressiveness. Referring to 27 Real Estates and Property sample of firms from Indonesia, this study investigates a relation among executive characteristics, firm size, leverage, profitability, and corporate tax aggressiveness. Applying Cash ETR (Effective Tax Rate) as an appropriate measures of tax aggressiveness, and use multiple regression model, the study found  a strong evidence that executive characteristics, firm size, and profitability are negatively correlated with the likelihood of tax aggressiveness. Meanwhile, leverage has a positive correlation to tax aggressiveness. The results revealed that the initial hypothesis (Ho) was accepted. However, there are many other factors that can influence corporate tax aggressiveness that were not examined in this study. For future research, it is expected to examine these other factors. Based on the results of this study, companies must pay more attention to the characteristics of executives in carrying out tax aggressiveness due to the fact that the higher the level of corporate risk, the smaller corporate tax aggressiveness. Although this study gradually builds upon recent studies about corporate tax aggressiveness, it brings a groundbreaking comparative assessment of executive characteristics, firm size, leverage, profitability, and corporate tax aggressiveness.@font-face {font-family:SimSun; panose-1:2 1 6 0 3 1 1 1 1 1; mso-font-alt:宋体; mso-font-charset:134; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 680460288 22 0 262145 0;}@font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-536870145 1107305727 0 0 415 0;}@font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-536859905 -1073732485 9 0 511 0;}@font-face {font-family:"\@SimSun"; panose-1:2 1 6 0 3 1 1 1 1 1; mso-font-charset:134; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 680460288 22 0 262145 0;}@font-face {font-family:TimesNewRoman; panose-1:2 11 6 4 2 2 2 2 2 4; mso-font-alt:"MS Mincho"; mso-font-charset:128; mso-generic-font-family:auto; mso-font-pitch:auto; mso-font-signature:0 134676480 16 0 131072 0;}@font-face {font-family:"\@TimesNewRoman"; mso-font-charset:128; mso-generic-font-family:auto; mso-font-pitch:auto; mso-font-signature:0 134676480 16 0 131072 0;}p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin-top:0cm; margin-right:0cm; margin-bottom:10.0pt; margin-left:0cm; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-fareast-font-family:Calibri; mso-bidi-font-family:SimSun; mso-ansi-language:EN-US; mso-fareast-language:EN-US;}.MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:11.0pt; mso-ansi-font-size:11.0pt; mso-bidi-font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-fareast-font-family:Calibri; mso-hansi-font-family:Calibri; mso-bidi-font-family:SimSun; mso-ansi-language:EN-US; mso-fareast-language:EN-US;}.MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;}div.WordSection1 {page:WordSection1;}