CEO over-confidence and tax avoidance

Dika Fausia Dayuningtyas, Alfa Rahmiati

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


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.

Original languageEnglish
Pages (from-to)680-696
Number of pages17
JournalInternational Journal of Innovation, Creativity and Change
Issue number4
Publication statusPublished - 2020


  • CEO Over-confidence
  • Current ETR
  • Over-investment
  • Tax avoidance


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