Research Article
The Effect of Political Connection on Tax Avoidance with Zombie Firms as a Moderating Variable
@INPROCEEDINGS{10.4108/eai.7-11-2023.2342275, author={Arniati Arniati and Ezra Dwisani Situmorang}, title={The Effect of Political Connection on Tax Avoidance with Zombie Firms as a Moderating Variable}, proceedings={Proceedings of the 5th International Conference on Applied Economics and Social Science, ICAESS 2023, 7 November 2023, Batam, Riau islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={12}, keywords={tax avoidance political connection effective tax rate zombie firm}, doi={10.4108/eai.7-11-2023.2342275} }- Arniati Arniati
Ezra Dwisani Situmorang
Year: 2023
The Effect of Political Connection on Tax Avoidance with Zombie Firms as a Moderating Variable
ICAESS
EAI
DOI: 10.4108/eai.7-11-2023.2342275
Abstract
This study aims to find out and find empirical evidence regarding the effect of political connections on tax avoidance with zombie firms as a moderating variable in Indonesia. Corporate tax avoidance is calculated using the effective tax rate (ETR). A lower ETR value indicates a higher level of tax avoidance. Linear regression analysis and moderation were used as analytical methods. Manufacturing companies listed on the Indonesian Stock Exchange during the 2018-2021 period are the samples in this study. The results of this study reveal that political connections have no effect on tax avoidance and zombie firm cannot moderate the relationship between the two.
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