The effect of IFRS adoption and law enforcement on book tax aggressiveness: Evidence from Asean countries

Firms are arguably motivated to exhibit tax aggressiveness because tax constitutes a significant portion of firms' total costs. This study aims to test the effects of IFRS adoption and law enforcement on book-tax aggressiveness in six developing ASEAN countries. Our sample is 29,504 firm-year observations generated from Thomson Reuters Eikon for the years 2000-2017. The results show that IFRS adoption has a positive effect on book-tax aggressiveness, indicating that firms tend to prioritize book-tax aggressiveness over book-tax conformity. Further, law enforcement negatively affects book-tax aggressiveness. All in all, our findings imply that law enforcement is very crucial for ASEAN countries to enhance managers' awareness of not engaging the book-tax aggressiveness practice.

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Year of publication:	2019
Authors:	Damayanti, Theresia Woro
Published in:	Verslas: Teorija ir praktika / Business: Theory and Practice. - Vilnius : Vilnius Gediminas Technical University, ISSN 1822-4202. - Vol. 20.2019, p. 284-292
Publisher:	Vilnius : Vilnius Gediminas Technical University
Subject:	tax reporting aggressiveness \| financial reporting aggressiveness \| IFRS \| law enforcement

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.3846/btp.2019.27 [DOI] 169905990X [GVK] hdl:10419/247980 [Handle]
Classification:	M41 - Accounting ; H25 - Business Taxes and Subsidies ; H26 - Tax Evasion
Source:	EconStor

Persistent link: https://www.econbiz.de/10012703548