Research Article
The Effect of Family Ownership on the Relationship Between Aggressive Financial And Tax Reporting: Evidence From 10 Asian Countries
@INPROCEEDINGS{10.4108/eai.21-11-2018.2282297, author={Sabar Warsini and Sylvia Veronica Siregar and Dwi Martani and Ludovicus Sensi W}, title={The Effect of Family Ownership on the Relationship Between Aggressive Financial And Tax Reporting: Evidence From 10 Asian Countries}, proceedings={Proceedings of the First International Conference on Technology and Educational Science, ICSTES 2018, November 21-22 2018, Bali, Indonesia}, publisher={EAI}, proceedings_a={ICTES}, year={2019}, month={3}, keywords={aggressive financial reporting aggressive tax reporting family ownership}, doi={10.4108/eai.21-11-2018.2282297} }- Sabar Warsini
Sylvia Veronica Siregar
Dwi Martani
Ludovicus Sensi W
Year: 2019
The Effect of Family Ownership on the Relationship Between Aggressive Financial And Tax Reporting: Evidence From 10 Asian Countries
ICTES
EAI
DOI: 10.4108/eai.21-11-2018.2282297
Abstract
This research aims to investigate the nature of the relationship between aggressive financial and tax reporting, and the influence of family ownership upon that relationship. Using cross-country data of public companies listed on the stock exchanges of 10 countries in Asia, this study finds that aggressive financial reporting is associated positively with aggressive tax reporting and is reciprocal in nature, indicating that managers may no longer face a trade-off between the two. It is evident that managers have conducted aggressive financial and tax reporting simultaneously for the same reporting period. This aggressive reporting tendency is influenced by the characteristics of the company. Companies controlled by families tend to conduct less simultaneous aggressive financial and tax reporting for the same reporting period than others. These findings prove that the existence of family control in public companies does not encourage managers to conduct simultaneous aggressive financial and tax reporting in the same reporting period
