Investor Perception of Tax Avoidance and Quality of Earnings Information

Mukhlasin ., Nur Anissa


This study aims to determine investor perceptions of tax avoidance and investor perceptions of the quality of earnings information in companies that avoid taxes. The study was conducted on non-financial companies listed on the Indonesia Stock Exchange for the period 2012-2015 with a final sample of 634 observational data, after deducting companies that suffered losses, not indicated to avoid tax evasion and deviant data. Data analysis was done with descriptive statistics and inferential test. The hypothesis in this study was tested by multiple linear regression. The result of the regression analysis proves that tax avoidance has a positive effect on the investor's response so that it can increase the value of the company. Test results also prove that tax avoidance reduces the quality of earnings information based on investor perspective. The difference in the sign of the regression coefficient proves that tax avoidance will be responded positively by the investor if tax evasion does not decrease the quality of earnings information.

Keywords: tax avoidance, earnings response coefficient, earning quality, cummulative abnormal return

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1697 ISSN (Online)2222-2847

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©