Narcissistic Leadership in an Era of Uncertainty: Insights on Tax Aggressiveness Among Indonesian Company CEOs
Keywords:
Narcissistics; Tax Aggressiveness; CETR; Accounting BehaviorAbstract
Post-pandemic, tax aggressiveness in Indonesia has become a complex issue as companies navigate a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) environment, facing new risks while attempting to recover financial performance. The volatile nature of global economic conditions, combined with uncertainty around regulatory changes and ambiguous market signals, has heightened the complexity of corporate tax strategies. Government policies related to tax incentives, while intended to support recovery, have the potential to create loopholes for companies to manipulate financial data in order to avoid tax obligations.This study aims to analyze the effect of narcissistic CEO leadership on corporate tax aggressiveness in the context of this VUCA environment. The sample includes all companies listed on the Indonesia Stock Exchange (IDX) during the 2023 period. A simple linear regression analysis is employed to test the relationship between CEO narcissism, as the independent variable, and tax aggressiveness, as the dependent variable. The results of this study are expected to provide insight into how leadership characteristics, particularly narcissism, can influence corporate tax strategies in uncertain and complex conditions.The findings reveal that narcissistic CEOs do not significantly influence tax aggressiveness, offering an important perspective on leadership and decision-making in Indonesia’s volatile post-pandemic business landscape. This research contributes to a deeper understanding of how tax elements are integrated into each stage of the accounting process, including recognition, measurement, valuation, presentation, and disclosure.
References
Aliyyah, N. ,dkk. (2021). What Affects Employee Performance Through Work Motivation? Journal of Management Information and Decision Science, 24, 1–14.
Amran, M. (2020). The Effects Of CEO Narcissism And Leverage On Tax Avoidance. Jurnal Mirai Management, 5(1), 293–304.
Araújo, V. C., Góis, A. D., Luca, M. M. M. De, & Lima, G. A. S. F. de. (2021). CEO narcissism and corporate tax avoidance,.RevistaContabilidade&Finanças, 32(85), 80–94. https://doi.org/10.1590/1808-057x202009800
Bagaskara, S., & Akmal, S. Z. (2019). Analisis Statistik Menggunakan JASP: Buku Panduan untuk Mahasiswa. https://doi.org/10.6084/m9.figshare.9980744
Bilicka Daniela Scur, K. A., Devereux, M., Dowd, T., Ferraz, C., Friedman, J., Forbes, S., Gibbons, B., Guadalupe, M., Gumpert, A., McElheran, K., Prat, A., Sadun, R., Seidel, A., Van Reenen, J., Waldman, M., Ytsma, E., Bilicka Jon M, K. A., & Scur, D. (2021). NBER WORKING PAPER SERIES ORGANIZATIONAL CAPACITY AND PROFIT SHIFTING. http://www.nber.org/papers/w29225
Bivianti, V., Stefani, M. E., &Yuniarsih, N. (2022). THE EFFECT OF EXECUTIVE CHARACTERISTICS, CEO OVERCONFIDENCE, CAPITAL INTENSITY ON TAX AVOIDANCE.
Brunzel, J. (2021). Overconfidence and narcissism among the upper echelons: a systematic literature review. Management Review Quarterly, 71(3), 585–623. https://doi.org/10.1007/s11301-020-00194-6
Buelow, M. T., & Brunell, A. B. (2018). Narcissism and Involvement in Risk-Taking Behaviors. In Handbook of Trait Narcissism (pp. 233–242). Springer International Publishing. https://doi.org/10.1007/978-3-319-92171-6_25
Czarna, A. Z., &Nevicka, B. (2019). Narcissism and Leadership. In Encyclopedia of Personality and Individual Differences (pp. 1–9). Springer International Publishing. https://doi.org/10.1007/978-3-319-28099-8_2334-1
Doho, S. Z., & Santoso, E. B. (2020). PENGARUH KARAKTERISTIK CEO, KOMISARIS INDEPENDEN, DAN KUALITAS AUDIT TERHADAP PENGHINDARAN PAJAK. MEDIA AKUNTANSI DAN PERPAJAKAN INDONESIA, 1(2), 169–184. https://doi.org/10.37715/mapi.v1i2.1408
Francis, B. B., Sun, X., Weng, C.-H., & Wu, Q. (2022). Managerial ability and tax aggressiveness. China Accounting and Finance Review, 24(1), 53–75. https://doi.org/10.1108/CAFR-02-2022-0002
François, M., Vicard, V., & Francois, M. (2023). Tax Avoidance and the Complexity of Multinational Enterprises April 2023 Tax avoidance and the complexity of multinational enterprises *.
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2–3), 127–178. https://doi.org/10.1016/j.jacceco.2010.09.002
Harymawan, I., Anridho, N., Minanurohman, A., Ningsih, S., Kamarudin, K. A., & Raharjo, Y. (2023). Do more masculine-faced CEOs reflect more tax avoidance? Evidence from Indonesia. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2171644
Ishaqi, M. U., Bambang, S., Sekolah, H., Ekonomi, T. I., & Surabaya, I. (2020). PENGARUH CORPORATE SOCIAL RESPONSIBILITY DAN AGRESIVITAS PAJAK TERHADAP NILAI PERUSAHAAN.
Johannesen, N., Tørsløv, T., & Wier, L. (2020). Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data. World Bank Economic Review, 34(3), 790–809. https://doi.org/10.1093/wber/lhz002
Kalbuana, N., Taqi, M., Uzliawati, L., & Ramdhani, D. (2023). CEO narcissism, corporate governance, financial distress, and company size on corporate tax avoidance. Cogent Business & Management, 10(1). https://doi.org/10.1080/23311975.2023.2167550
Kusumawardani, A. (2022). Malleable Mental Accounting UMKM pada era VUCA.
Kyung-min, L. (2020). Overseas tax evasion still rampant. Https://Www.Koreatimes.Co.Kr/Www/Biz/2019/10/602_276911.Html.
Nursalim Malay, M., Belajar Mudah, Ms., & Madani Jaya Bandar Lampung, C. (2022). Analisis Data dengan SPSS dan JASP.
Pratomo, D., Nazar, M. R., &Pratama, R. A. (2022). Pengaruh Inventory Intensity, KarakterEksekutif, Karakteristik CEO Terhadap Tax Avoidance pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) pada Tahun 2016-2020. Jurnal Ilmiah Universitas Batanghari Jambi, 22(3), 1999. https://doi.org/10.33087/jiubj.v22i3.2871
Putri. (2020). Sri MulyaniSebut 451 Ribu Wajib Pajak Minta Insentif, CNBC Indonesia. Https://Www.Cnbcindonesia.Com/News/20201203192354-4-206723/Sri-Mulyani-Sebut-451-Ribu-Wajib-Pajak-Minta-Insentif.
Saleh, A. R. (2020). Ekosistem Yang Mempengaruhi PengembanganPustakawan. Jurnal Pustakawan Indonesia, 19(1), 53–66.
Saputri, I. W., & Kusumawardani, A. (2024). The Influence Of CEO’s Face Masculinity, CEO Narcissism, Gender Diversity, And CEO Overconfidence On Tax Aggressiveness-Indri Widya Saputri et.al The Influence Of CEO’s Face Masculinity, CEO Narcissism, Gender Diversity, And CEO Overconfidence On Tax Aggressiveness. Jurnal Ekonomi, 13, 1049–1061. https://doi.org/10.54209/ekonomi.v13i03
Soemarsono, P. N. (2020). PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP NILAI PERUSAHAAN DENGAN EARNINGS MANAGEMENT SEBAGAI VARIABEL MEDIASI. Akuntansi : Jurnal Akuntansi Integratif, 5(02). https://doi.org/10.29080/jai.v5i02.184
Wier, L., & Erasmus, H. (2023). The Dominant Role of Large Firms in Profit Shifting. IMF Economic Review, 71(3), 791–816. https://doi.org/10.1057/s41308-022-00180-w
Downloads
Published
How to Cite
Conference Proceedings Volume
Section
License
Copyright (c) 2024 Anisa Kusumawardani, Anis Thurmudi, Noor Salim, Andi Kartika, Indri Saputri
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
