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This study aims to investigate the impact of the adoption of international accounting and auditing standards on corruption perception. In addition, this study examines the strength of auditing and reporting standards (SARS) that mediate the relationship.

Agency theory and bonding theory were applied in this paper to investigate the impact of the adoption of international accounting and auditing standards on corruption perception. Data from 130 countries during three years were collected from Transparency International, Worldwide Governance Indicators, International Federation of Accountants, World Economic Forum, World Bank, Freedom House and World Justice Project. Hypotheses were tested using partial least squares structural equation modeling.

The results show a positive impact of the adoption of international accounting and auditing standards on corruption perception, directly and indirectly, through the SARS.

The results provide an insight into corruption eradication strategy through the adoption of international accounting and auditing standards and strengthen the auditing and reporting standards.

This study is distinctive, as no study has yet examined the impact of the adoption of international accounting standards construct, which contains International Financial Reporting Standards and International Standards on Auditing, on the corruption perception. The corruption perception construct is developed by combining the corruption perception index and the control of corruption indicators.

The purpose of this study is to examine the impact of managerial ability on corporate tax risk and long-term tax avoidance using the upper echelons theory.

This study uses a quantitative method with regression models, using a sample of listed firms on the Indonesia Stock Exchange from 2011 to 2018.

The regression results report that managerial ability negatively influences tax risk and positively impacts long-run tax avoidance. Companies with more able managers have a relatively lower tax risk and greater long-run tax avoidance. The results reveal that firms with managers that possess greater abilities are more committed to long-run tax avoidance while concurrently maintaining a lower level of their tax risk. The impacts the authors report are statistically significant and robust, as proved by a series of robustness checks and additional tests.

This study only includes firms from one developing country.

The empirical results might be of interest to board members while envisaging the benefits and costs of appointing and hiring managers, as well as to the tax authority and the other stakeholders interested in apprehending how managerial ability influences corporate tax risk and long-run tax avoidance practices simultaneously.

This study proposes and tests an explanation for the impact of managerial ability on corporate tax risk and long-run avoidance simultaneously in the context of an emerging country.