Political Connections and Tax Avoidance
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Abstract
Abstract
Purpose - This study aims to find empirical evidence whether political connections affect tax avoidance. Design/methodology/approach - The research method used is a quantitative research method from annual reports and financial statements of primary consumption sector companies listed on the IDX (Indonesia Stock Exchange) for 2019-2021. The sampling method used is a non-probability sampling method (purposive sampling). This study used regression panel data processed using Eviews 12.Findings - the results showed that political connections affect tax avoidance.Research limitations/implications – Investors who wish to invest in a company may choose to invest in companies with political connections due to the minimal tax avoidance practices carried out in such companies.
Keywords: Tax, Political Connections, and Tax Avoidance
Purpose - This study aims to find empirical evidence whether political connections affect tax avoidance. Design/methodology/approach - The research method used is a quantitative research method from annual reports and financial statements of primary consumption sector companies listed on the IDX (Indonesia Stock Exchange) for 2019-2021. The sampling method used is a non-probability sampling method (purposive sampling). This study used regression panel data processed using Eviews 12.Findings - the results showed that political connections affect tax avoidance.Research limitations/implications – Investors who wish to invest in a company may choose to invest in companies with political connections due to the minimal tax avoidance practices carried out in such companies.
Keywords: Tax, Political Connections, and Tax Avoidance
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Tjahyadi, S., & Carolina, V. (2024). Political Connections and Tax Avoidance. Jurnal Akuntansi, 16(1), 158–167. https://doi.org/10.28932/jam.v16i1.8318
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