Analysis About the Influences of Good Public Governance, Trust Toward Tax Compliance on Public Companies that Listed in Indonesian Stock Exchange

8 Pages Posted: 5 Dec 2016  

Meco Sitardja

Trisakti University - Accounting Doctoral Program, Faculty of Economic and Business

Susi Dwimulyani

Trisakti University - Accounting Magister Program Faculty of Economic and Business

Date Written: September 30, 2016

Abstract

This study aimed to examine the influence of good public governance on tax compliance with trust as intervening in the non financial companies listed in Indonesian Stock Exchange (IDX). The data used was obtained using SEM-PLS of 87 years observation of non financial companies for the period 2014. Tax Fairness was evaluated using questionnaires based on Saad (2009); Tax transparency was evaluated using questionnaires based on Rawlins (2008); Trust was evaluated using questionnaires based on Mayer et al (1995) and Benk and Budak (2012); and Tax compliance was evaluated using questionnaires based on Jackson et al (1986). Model analysis of the data testing was performed by structural equation modeling with approach partial least squares (SEM-PLS) that supported by SmartPLS 3.0 as statistic tool.

The results showed a significant and positive relationship between two dimensions of good public governance (tax fairness, tax authority reputation and tax transparency) and trust. Then, this result also showed that a significant and positive influences of tax fairness, and trust to tax compliance. And, this result showed that a significant and positive indirect influences of tax fairness and tax transparency to tax compliance with trust as mediating variable.

Keywords: Good public governance, trust, tax compliance

Suggested Citation

Sitardja, Meco and Dwimulyani, Susi, Analysis About the Influences of Good Public Governance, Trust Toward Tax Compliance on Public Companies that Listed in Indonesian Stock Exchange (September 30, 2016). OIDA International Journal of Sustainable Development, Vol. 09, No. 09, pp. 35-42, 2016. Available at SSRN: https://ssrn.com/abstract=2879749

Meco Sitardja (Contact Author)

Trisakti University - Accounting Doctoral Program, Faculty of Economic and Business ( email )

Jakarta
Indonesia

Susi Dwimulyani

Trisakti University - Accounting Magister Program Faculty of Economic and Business ( email )

Jakarta
Indonesia

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