This research aims to examine the relationship between CEO over-confidence on tax avoidance in Indonesia. The CEO over-confidence variable is measured using overinvestment and proxied by the dummy variable. The value of overinvestment is obtained from the results of residual regression between asset growth and sales growth. Tax avoidance is proxied by current ETR. This study used 260 firm-year observations from 86 manufacturing listed firms on the Indonesia Stock Exchange (IDX) for the period 2013-17 by using a purposive sampling method. The analytical method used in this research is ordinary least square (OLS) multiple linear regression with SPSS 20.0 software. This study finds that CEO over-confidence has a positive relationship on tax avoidance.
|Number of pages||17|
|Journal||International Journal of Innovation, Creativity and Change|
|Publication status||Published - 2020|
- CEO Over-confidence
- Current ETR
- Tax avoidance