Agresivitas Pajak Korporasi, Perubahan Auditor, dan Client Importance: Bukti Empiris di Indonesia

Abstract

This study examines the association of tax aggressiveness with voluntary auditor changes, both because of auditor dismissal and resignation. Our study also examine the role of the auditor's economic dependence to the client in the relationship of tax aggressiveness and auditor changes. Using observation data from the manufacturing sector in the Indonesia Stock Exchange and using logistic regression of tax shelter prediction model, we find a positive association between tax aggressiveness and voluntary auditor changes. We also find evidence that the economic dependence of auditors on their clients weaken the positive relationship between tax aggressiveness and auditor changes. This findings have implications for the stakeholders that the client-auditor relationship is sensitive due to the tax aggressiveness activities, and this relationship can be moderated by the auditor's economic interest in the client.