Astrid Rudyanto, Julisar Julisar and Debora Debora
This research aims to examine the association between political connection and tax aggressiveness during the COVID-19 pandemic and the role of business ethics in the association…
Abstract
Purpose
This research aims to examine the association between political connection and tax aggressiveness during the COVID-19 pandemic and the role of business ethics in the association between political connection and tax aggressiveness.
Design/methodology/approach
This study employs a multiple regression method for 147 manufacturing firms listed on the Indonesia Stock Exchange during the pandemic era.
Findings
Political connection has no association with tax aggressiveness. However, political connection has a negative (positive) association with tax aggressiveness in more (less) ethical firms. The results are robust after controlling for year-fixed effects, endogeneity issues and other tax aggressiveness measurements.
Originality/value
Political connection is often cited as the driver of unethical business, including tax aggressiveness. However, this paper claims and finds that political connection is a double-edged sword. Ethical firms use political connection to reduce their tax aggressiveness, and vice versa. Previous research has paid little attention to this topic. This paper also uses COVID-19 as a natural experiment to highlight the importance of corporate social responsibility activities as business ethics.
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Keywords
Dyah Puspitasari Srirahayu, Muhammad Rifky Nurpratama, Tanti Handriana and Sri Hartini
The purpose of this study is to find out: gender, social and emotional factors as obstacles that influence Generation Z in using e-Books.
Abstract
Purpose
The purpose of this study is to find out: gender, social and emotional factors as obstacles that influence Generation Z in using e-Books.
Design/methodology/approach
The method in this study is exploratory quantitative research that was conducted by testing the factors that influence the use of e-Books by Generation Z. This study was analyzed using structure equation model, which involves regressions, measuring direct and indirect effects and path analysis. Social influence, emotional attachment and gender are suspected to be a barrier in the use of e-Books by Generation Z.
Findings
The results of this study indicate that social influence and gender do not affect the use of e-Books, in which only emotional attachment directly affects the preference towards e-Book.
Research limitations/implications
The limitation of this study is that the sample used is still in Generation Z in Indonesia so that further research can use samples from various countries.
Practical implications
The results of this study can be used as a consideration for e-Books Publishers to create e-books as readers wish, for example, there is a special sound when opening e-Books, there is an easy feature to give notes in e-Books and features are presented to immediately see the link in the e-Books.
Social Implications
Generation Z is actually ready to use e-Books for reading activities. However, there are several things that make them consider reading e-Books. what they consider is the ease of use and the usefulness of the E-Books for their daily needs. Therefore, managers of information institutions and information providers in Indonesia can at least consider what genre of e-books collection can be provided and for whom the e-books are intended.
Originality/value
This research shows that Generation Z in choosing a reading format will be influenced by the intention of using the reading format, whereas the intention is influenced by the attitude in determining the reading format.
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Mohamed Mihilar Shamil, Dulni Wanya Gooneratne, Dasitha Gunathilaka and Junaid M. Shaikh
This study examines the effect of board characteristics on the tax aggressiveness of listed companies on the Colombo Stock Exchange in Sri Lanka.
Abstract
Purpose
This study examines the effect of board characteristics on the tax aggressiveness of listed companies on the Colombo Stock Exchange in Sri Lanka.
Design/methodology/approach
The sample consists of 264 firm-year observations of non-financial listed companies in Sri Lanka from 2014 to 2019. The dynamic panel system GMM technique was used to test the hypotheses, and further analyses were performed using the propensity score matching technique.
Findings
All four effective tax rate measures' mean values were lower than the statutory tax rate, indicating the likelihood of tax planning. Whether board attributes are likely to mitigate tax aggressiveness is uncertain because the results are inconsistent and depend on the ETR measure. Similarly, the logistic regression results derived using the PSM approach are inconsistent, suggesting that board characteristics may have a limited effect on tax aggressiveness. Hence, the corporate governance-tax aggressiveness nexus is limited in the case of Sri Lanka.
Research limitations/implications
This investigation is limited to non-financial listed companies in Sri Lanka and incorporates only four tax aggressiveness measures. Findings are imperative for policymakers, regulators, and professional bodies to improve corporate governance codes and rules to enhance organisational transparency toward corporate tax payments.
Social implications
Aggressive tax planning by companies will reduce government tax revenue, hinder social progress, and cause public mistrust of large corporations and institutions.
Originality/value
This study provides insight into the nexus between corporate governance and tax aggressiveness in a middle-income economy in South Asia hit by an economic crisis where tax revenue has fallen and tax enforcement is weak.