Political Connection, Foreign Ownership, and Tax Avoidance: Does Executive Gender Moderate the Relationship?

Limpat Akbar Yudanto; Theresia Woro Damayanti

doi:10.14414/jebav.v24i3.2899

Vol. 24 No. 3 (2021), Articles

Vol. 24 No. 3 (2021) Pages 408-419

Political Connection, Foreign Ownership, and Tax Avoidance: Does Executive Gender Moderate the Relationship?

Limpat Akbar Yudanto⁺⁻
Theresia Woro Damayanti⁺⁻

Limpat Akbar Yudanto

Satya Wacana Christian University

Theresia Woro Damayanti

Satya Wacana Christian University

DOI: 10.14414/jebav.v24i3.2899

Published 30-03-2022

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Keywords

Political connection
Foreign Ownership
Executive gender
and Tax avoidance.

How to Cite

Yudanto, L. A., & Damayanti, T. W. (2022). Political Connection, Foreign Ownership, and Tax Avoidance: Does Executive Gender Moderate the Relationship? Journal of Economics, Business, & Accountancy Ventura, 24(3), 408-419. https://doi.org/10.14414/jebav.v24i3.2899

Abstract

Tax revenue is a vital source of income to support the economic development of a
country. Therefore, this study aims to provide empirical evidence of the influence of
political connections and foreign ownership on tax avoidance. This study also analyzes the moderating role of executive gender on the influence of political
connections and foreign ownership on tax avoidance. This study used secondary panelÂ data from a survey conducted by the World Bank Open from 2006-2018. This study'sÂ data was around 50,454 companies from all over the world. The hypothesis testingÂ was performed using multinomial logistic regression. The results showed that
political connection positively affected tax avoidance, but foreign ownership had no
significant effect on tax avoidance. Furthermore, male executives strengthened the
relationship between political connections and tax avoidance, but it did not moderate
the effect of foreign ownership on tax avoidance. The findings suggested that the
Directorate General of Taxation should scrutinize companies with political connections to optimize government tax revenue.

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Political Connection, Foreign Ownership, and Tax Avoidance: Does Executive Gender Moderate the Relationship?

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