Journal of Accounting, Finance, Taxation, and Auditing (JAFTA)

The Effect of Transfer Pricing Aggressiveness on Tax Avoidance with Intangible Asset Intensity as a Moderator

Jaka Lirmaya — 2026-11-03

This study investigates the effect of transfer pricing aggressiveness on tax avoidance, where intangible asset intensity is considered as moderating variable, in companies engaged in plantation and food business, listed in Indonesia Stock Exchange (IDX) for year period of 2020 to 2024. The approach taken to this study is explanatory research method, involving secondary data obtained from audited annual consolidated financial statements. Data collection involved purposive sampling technique, which yielded 30 observations from six companies. CETR is used as proxy for tax avoidance; transfer pricing aggressiveness is proxied as ratio of related party transactions to total assets; intangible asset intensity is proxied as ratio of intangible assets to total assets; and firm size as control variable. The hypotheses testing was done through Moderated Regression Analysis (MRA). The results showed transfer pricing aggressiveness positively affects CETR, meaning more related-party transactions intensity leads to higher cash-basis tax payments and, moreover, to lesser tax avoidance. Intangible asset intensity does not significantly affect CETR and does not moderate the relationship between transfer pricing aggressiveness and tax avoidance. Finally, the firm size positively affects CETR. Therefore, it is confirmed that transaction-related parties and intangible asset ownerships are not necessarily used as tax avoidance techniques among Indonesian publicly held firms.The study contributes to transfer pricing and corporate taxation literature by emphasising importance of institutional context, regulatory oversight, and sector characteristics in interpreting correlation between transfer pricing and tax avoidance.

Keywords: transfer pricing; tax avoidance; cash effective tax rate; intangible assets; moderated regression analysis.

ESG Credibility and Firm Profitability in An Emerging Market: Evidence from ESG Controversies and ESG Gap in Indonesia

William Rudy Sugiharto — 2026-11-03

ESG is an important channel for a firm's relationship with its stakeholders. The firms are required to not only focus on profit, but they should also consider environmental, social, and governance. This study examines the relationship between Environmental, Social, and Governance (ESG) performance and firm profitability in an emerging market, with a particular emphasis on ESG credibility. Using a balanced panel dataset of 58 firms listed on the Indonesia Stock Exchange (IDX) over the period 2021–2024 (232 firm-year observations), this study employs ESG data from Refinitiv/LSEG and annual financial statements to measure profitability using Return on Assets (ROA). The empirical model is estimated using fixed-effects panel regression with firm-level clustered robust standard errors. The results indicate that the direct relationship between ESG performance and profitability is not supported in the Indonesian context. However, reputational risk plays a critical role: ESG controversies are significantly associated with profitability, and when operationalized as a high-controversy indicator (Controversy High), this variable exerts a negative effect on ROA. The key finding of this study demonstrates that the ESG Gap (ESG Score − ESGC) has a negative and highly significant impact on ROA, indicating the presence of a credibility penalty when the discrepancy between headline ESG performance and controversy-adjusted ESG scores widens. Robustness tests using an alternative profitability proxy (Net Margin) and alternative ESG measures confirm that the direct effect of ESG on profitability is relatively weak, whereas ESG credibility indicators are more informative. This study contributes to the literature by reinforcing the ESG credibility perspective and providing empirical evidence of reputational penalties and potential greenwashing in emerging markets.

Keywords: ESG credibility; ESG gap; ESG controversies; profitability (ROA); fixed effects panel regression

Profitability and Share Price of Listed Deposit Money Banks in Nigeria

Peter Sunday Daramola — 2026-11-03

Volatility of share prices (SPR) of listed Deposit Money Banks (DMBs) in Nigeria is a major concern to investors because they often suffer huge losses as against their expectations. Share prices volatility can result to low returns and increase uncertainty of future returns to investors. Thus, investors need information disclosed by management in the annual reports of DMBs to make investment decisions, therefore, this study investigated the impact of profitability on SPR of listed DMBs in Nigeria. The study utilised an ex post facto research design. The population of the study consists of all listed DMBs on the Nigerian Exchange Group (NGX). Purposive sampling technique was used to select 10 listed DMBs having the required data for the study from 2015 to 2024. The results of the Feasible Generalized Least Squares (FGLS) analysis revealed that the influence of return on assets (ROA) on SPR was positive and significant, while return on equity (ROE) has an insignificant positive influence on SPR. The study concluded that Profitability, represented by ROE and ROA, altogether significantly affects the SPR of listed DMBs in Nigeria. The study recommended that management of DMBs in Nigeria should boister ROA by managing bank assets efficiently in other to generate more profits from assets which will reinforce investor trust and driving up share demand thereby resulting in share price appreciation, and investors should take into consideration ROA, an indicator of profitability when conducting in-depth research before investing in shares of DMBs in Nigeria

Keywords: Deposit money banks; profitability; return on assets; return on equity; share price.

Green Banking, Corporate Social Responsibility, dan Dewan Komisaris Independen terhadap Nilai Perusahaan

Ihsan Ihsan — 2026-11-03

This study aims to examine the effect of Green Banking, Corporate Social Responsibility, and Independent Commissioners on firm value in banking companies listed on the Indonesia Stock Exchange during the 2022–2025 period, both partially and simultaneously. This study employs a quantitative approach using secondary data obtained from companies’ annual reports and sustainability reports. The research sample was determined using purposive sampling, resulting in 30 banking companies. Data analysis was conducted using multiple linear regression. The results indicate that Green Banking, Corporate Social Responsibility (CSR), and Independent Commissioners have a positive and significant effect on firm value, both individually and simultaneously. The implementation of Green Banking, Corporate Social Responsibility (CSR), and Independent Commissioners explains 30.3% of the variation in firm value, while the remaining 69.7% is explained by factors outside this study. The implications of this study suggest that banks need to strengthen the implementation of sustainability and corporate governance practices as a means of enhancing firm value.

Keywords: Green Banking; Corporate Social Responsibility; Independent Board of Commissioners; Firm Value

Audit Judgment pada Akuntan Publik: Peran Pengalaman, Kompleksitas Tugas, Independensi, dan Skeptisisme Profesional

Gitamy Megasariresthi — 2026-11-03

Numerous cases of false audit opinions are detrimental to the auditor and the client. Moreover, to the public, namely the stakeholders. Inappropriate audit opinions are mostly initiated by the auditor’s inability to consider and make decisions regarding how the auditor should respond to the audit evidence received (audit judgment). This study is intended to probe the effect of auditor experience, task complexity, independence, and professional skepticism on audit judgment. The sample in this study is an active public accountant in Indonesia. This analysis is done with 36 respondents using convenience sampling method. The test was carried out using multiple linear regression analysis assisted by Statistical Product and Service Solution (SPSS) software version 26. The results shows that (1) auditor experience does not affect audit judgment, (2) task complexity does not affect audit judgment, (3) independence does not affect audit judgment, (4) professional skepticism affect audit judgment positively, and (5) auditor experience, task complexity, independence, and professional skepticism simultaneously have an effect on audit judgment. Contributions that are able to be presented from the results of this study are (1) for academics to be able to educate prospective public accountants so they are able to produce credible successors to the public accounting profession, and (2) for practitioners to manage in improving the performance of every public accountant in their work environment.

Keywords: auditor’s experience, task complexity, independence, skepticism, audit judgment

Do the Corporate Governance Framework Mechanism Affect Sustainability Reporting in Food Beverage Companies?

Apriwandi Apriwandi — 2026-11-03

This study aims to examine the influence of corporate governance mechanisms on sustainability reporting within food and beverage (F&B) companies listed on the Indonesia Stock Exchange for the 2021–2024 period. The research is motivated by increasing stakeholder demands for transparency regarding environmental, social, and governance (ESG) disclosures, as well as the significance of sustainability reporting as a form of legitimacy for a company’s internal responsibilities—reflected in its business strategy and long-term sustainability. The study utilizes secondary data obtained from companies' financial and sustainability reports. Panel data regression analysis is employed to test the impact of the independent variables—specifically corporate governance mechanisms, comprising board size, the presence of female directors, independent directors, and foreign directors—on sustainability reporting. The findings indicate that corporate governance mechanisms do not influence the level of sustainability reporting. None of the governance variables were found to have a significant effect on promoting sustainability reporting within these companies. Consequently, the implementation of corporate governance roles, particularly within the F&B sector, has yet to effectively enhance sustainability reporting.

Keywords: sustainability reporting; female, independent and foreign directors; ESC.