The Effect of Financial Constraints on Cash Tax Savings

Arni Yulvia, Wika Arsanti Putri

2020

Abstract

This study aims to empirically examine the effect of financial constraints on cash tax savings. The object under study is manufacturing sector companies listed on the Indonesia Stock Exchange in the 2014 -2018 period with a total sample of 185 companies over 5 years obtained by purposive sampling. The research method used is a quantitative method with a panel data regression analysis approach fixed effect model with the help of Eviews application version 11. The results of the study found that changes in financial constraints did not significantly influence the cash tax savings that was proxied by ∆GAAP ETR. This shows that companies with increased financial constraints do not obtain additional internal funds with a cash tax savings strategy. Companies pay more attention to the risks they will face if using this strategy.

Paper Citation

in Harvard Style

Yulvia A. and Putri W. (2020). The Effect of Financial Constraints on Cash Tax Savings. In Proceedings of the 2nd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-517-3, pages 174-185. DOI: 10.5220/0010355601740185

in Bibtex Style

@conference{icaess20,
author={Arni Yulvia and Wika Arsanti Putri},
title={The Effect of Financial Constraints on Cash Tax Savings},
booktitle={Proceedings of the 2nd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2020},
pages={174-185},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010355601740185},
isbn={978-989-758-517-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - The Effect of Financial Constraints on Cash Tax Savings
SN - 978-989-758-517-3
AU - Yulvia A.
AU - Putri W.
PY - 2020
SP - 174
EP - 185
DO - 10.5220/0010355601740185