Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)

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Tax Avoidance and Investment Efficiency: Can Competition in Product Markets Mediate?

Authors
Retnaningtyas Widuri, Vanessa Naomi, Lovena Cicilia Bumulo, Jonathan Bima Wijaya
Corresponding Author
Retnaningtyas Widuri
Available Online 14 December 2020.
DOI
10.2991/aebmr.k.201212.060How to use a DOI?
Keywords
Investment Efficiency, Managerial Ability, Product Market Competition, Tax Avoidance
Abstract

This study examines the relationship between tax avoidance and investment efficiency, mediated by product market competition in Indonesian public listed companies. The existence of tax avoidance also depends on how the company’s managers make investment decisions. If managers can utilize tax avoidance properly, investment efficiency will increase. The increasing investment in a company is also influenced by competition in the market through product market competition. Indirectly, this competition makes the company take some investments that will support the company’s development to survive through the competition. Investment by companies on their product development would ensure the product’s adequacy to compete in market competition. A product that competes well in the market would also naturally raise the company’s investment efficiency. The result depends on the manager’s decision based on their market demands; the investment could still be either efficient or inefficient. The Indonesia’s public non-financial companies (Tbk companies) listed in Indonesia Stock Exchange from 2014 to 2018 were used as the samples of the study. The data were processed by the SPSS and Warp PLS program. Research results indicate that there is a positive relationship between tax avoidance and investment inefficiency.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2020
ISBN
978-94-6239-297-7
ISSN
2352-5428
DOI
10.2991/aebmr.k.201212.060How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Retnaningtyas Widuri
AU  - Vanessa Naomi
AU  - Lovena Cicilia Bumulo
AU  - Jonathan Bima Wijaya
PY  - 2020
DA  - 2020/12/14
TI  - Tax Avoidance and Investment Efficiency: Can Competition in Product Markets Mediate?
BT  - Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)
PB  - Atlantis Press
SP  - 426
EP  - 432
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201212.060
DO  - 10.2991/aebmr.k.201212.060
ID  - Widuri2020
ER  -