TAX RATE AND NON-DEBT TAX SHIELD

JURNAL RISET MANAJEMEN DAN BISNIS (JRMB) FE-UNIAT

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Field Value
 
Title TAX RATE AND NON-DEBT TAX SHIELD
 
Creator Teja, Adrian
 
Description Firm can minimize their tax obligation by debt tax shield and non-debt tax shield (NDTS). However, research findings on how firm treat debt tax shield and NDTS, as a substitute or as a complement, remain inconclusive. This paper objective is to provide evidence on how firm usage of NDTSchange when tax rates change in Indonesia. Multivariate regression analysis performed with NDTSas dependent variable and tax rates change and debt level as independent variable. Multivariate regression analysis covering 73 Indonesia firms with 146 observations for the period of year 2008 to year 2010. Within this period, Indonesia corporate tax rate being reduce twice from 30% in 2008 to 28% in 2009 and 25% in 2010. This research find when tax rates is decrease, public firm increase their usage of NDTSwith a lag of one year and debt financing remain increased alongside with non-debt tax shield. This finding provide support to debt tax shield and NDTSas a complement.
 
Publisher Economic Faculty, Attahiriyah Islamic University
 
Date 2019-06-21
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://jrmb.ejournal-feuniat.net/index.php/JRMB/article/view/261
10.36226/jrmb.v4i2.261
 
Source Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT; Vol 4 No 2 (2019); 257 - 268
2581-2165
2527-7502
 
Language eng
 
Relation http://jrmb.ejournal-feuniat.net/index.php/JRMB/article/view/261/140
 
Rights Copyright (c) 2019 Adrian Teja
http://creativecommons.org/licenses/by-nc-sa/4.0
 

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