Corporate governance, tax avoidance and earnings management: family CEO vs non-family CEO managed companies in Indonesia

Figures & data

Figure 1. Theoretical framework.

Table 1. Analysis of the sample.

Description	Full Sample	FCEO	NFCEO
Sample	117	69	48
Total Observation data	468	276	192
Observations discarded (outliers)	(163)	(19)	(29)
Final sample	305	257	163

Note: FCEO = Family CEO managed companies, NFCEO = Non-family CEO managed companies.

Table 2. Descriptive statistics for all family companies.

Variable	Full Sample
	Obs	Mean	Min	Max	Std. dev
EM	305	−0,2155	−3,0976	1,4971	0,7000
CG	305	0,7826	0,6563	0,9118	0,0650
TA	305	0,0007	−0,0167	0,0187	0,0082

Table 3. Descriptive statistics for family CEO managed companies.

Variable	Family CEO
	Obs	Mean	Min	Max	Std. dev
EM	257	−0,1870	− 3,9999	3,0382	0,7134
CG	257	0,7797	0,5625	0,9688	0,0635
TA	257	0,0027	− 0,0465	0,0591	0,0170

Table 4. Descriptive statistics for non-family CEO managed companies.

Variable	Non-Family CEO
	Obs	Mean	Min	Max	Std. dev
EM	163	−0,3960	−3,4367	1,4971	0,9024
CG	163	0,7822	0,6176	0,9375	0,0685
TA	163	0,0026	−0,0388	0,0444	0,0146

Table 5. Independent sample t-test.

	Levene’s test for equality of variances	t-test for equality of means
Earnings Management	0.001	0.037

Table 6. Performance mean of family CEO and non-family CEO managed companies.

	Mean
Earnings Management:
Family CEO Managed Companies	−0.152
Non-Family CEO Managed Companies	−0.308

Table 7. Regression results.

Full Sample			Family CEO			Non-Family CEO
Variable	Coef	Prob	Variable	Coef	Prob	Variable	Coef	Prob
Step 1 (CG≫TA)			Step 1 (CG≫TA)			Step 1 (CG≫TA)
C	0.0159	0.0194	C	−0.0292	0.0669	C	0.0521	0.0421
CG	−0.0194	0.0245	CG	0.0414	0.0417	CG	−0.0633	0.0533
Step 2 (CG≫EM)			Step 2 (CG≫EM)			Step 2 (CG≫EM)
C	−3.3322	0.0051	C	3.3554	0.0020	C	2.7739	0.0005
CG	3.9825	0.0087	CG	−4.5434	0.0011	CG	−4.0527	0.0001
Step 3 (CG≫TA≫EM)			Step 3 (CG≫TA≫EM)			Step 3 (CG≫TA≫EM)
C	−0.2317	0.0000	C	−0.1882	0.0019	C	−0.3684	0.0000
TA	−10.020	0.0317	TA	−7.1347	0.0095	TA	−10.559	0.0249

Table 8. Alternative test- performance mean of family CEO and non-family CEO managed companies.

	Mean
Earnings Management:
Family CEO Managed Companies	0.6429
Non-Family CEO Managed Companies	0.5085

Table 9. Alternative regression results.

Full Sample			Family CEO			Non-Family CEO
Variable	Coef	Prob	Variable	Coef	Prob	Variable	Coef	Prob
Step 1 (CG≫TA)			Step 1 (CG≫TA)			Step 1 (CG≫TA)
C	0.0159	0.0194	C	−0.0292	0.0669	C	0.0521	0.0421
CG	−0.0194	0.0245	CG	0.0414	0.0417	CG	−0.0633	0.0533
Step 2 (CG≫EM)			Step 2 (CG≫EM)			Step 2 (CG≫EM)
C	4.9404	0.0258	C	2.9006	0.0041	C	3.9862	0.0005
CG	−5.7064	0.0453	CG	−2.9851	0.0245	CG	−4.4469	0.0021
Step 3 (CG≫TA≫EM)			Step 3 (CG≫TA≫EM)			Step 3 (CG≫TA≫EM)
C	0.4883	5.4236	C	0.6763	0.0001	C	0.5318	3.8523
TA	−19.417	0.0544	TA	−12.2400	0.0401	TA	−13.891	0.0543

Data availability statement

The data that support the findings of this study are available from the corresponding author, Iskandar Itan, upon reasonable request.