Agus Munandar Researches the Effect of Zakat Regulation as a Tax Reduction on Company Performance
Nino Eka Putra ~ Humas FEB UI
DEPOK – Postgraduate Program in Accounting, Faculty of Economics and Business, University of Indonesia held an open session of Doctoral Promotion Agus Munandar (1606940080) which took place in the Postgraduate Auditorium, Postgraduate Building, on Friday (1/31/2020).
The Doctoral Promotion Session was chaired by Prof. Nachrowi Djalal Nachrowi, Ph.D., with his supervisor, Prof. Akhmad Sakhroza, Ph.D. (Promoter), Dr. Dwi Martani (Co-Promoter 1), and Dodik Siswantoro, M.Sc., Acc (Co-Promoter 2). As the testing team, Hilda Rossieta, Ph.D. (Chief Examiner), Dr. Chaerul D. Djakman, Miranti Kartika Dewi, Ph.D., Rahmatina A. Kasri, Ph.D., and Dr. Ari Pratiwi.
The dissertation raised by Promovendus, entitled “The Effect of Zakat, Corporate Reputation, and Zakat Regulation as a Tax Reduction on Financial Performance: Cross-Country Analysis”. This study aims to identify the direct impact of zakat on the company’s financial performance.
This study also examines the indirect effect of zakat on corporate financial performance through corporate reputation. This study also examines the role of moderation in zakat regulation as a tax deduction on the relationship of zakat and the company’s financial performance.
“This research provides several contributions such as examining the direct impact of zakat on corporate financial performance, analyzing the influence of zakat on financial performance through corporate reputation, analyzing companies in various countries that have diverse regulations,” Agus Munandar said.
He continued, besides, examining the role of moderation in zakat regulation as a tax deduction on the relationship between zakat and financial performance, and using more comprehensive financial performance measures compared to previous studies, namely using accounting performance measures, market performance, and sustainable financial performance ( going concern of financial performance).
The initial sample of this study consisted of companies in Indonesia, Kuwait, Saudi Arabia, Sudan, Malaysia, Qatar, and Pakistan that were registered with Thompson Reuters in the 2007-2018 period. In contrast to previous research, this study analyzes cross-country (cross-country) and considers zakat regulation as a tax deduction.
Due to the small number of samples and observations in Indonesia, Qatar, Sudan and Pakistan, this study focuses on companies in Malaysia, Kuwait and Saudi Arabia. Nevertheless, the sample has represented zakat regulation as a tax deduction and zakat regulation as a deduction for taxable income.
The number of final observations in this study amounted to 709 observations. The results showed that zakat has a significant positive effect on accounting performance which is projected using ROE (Return on Equity) and ROA (Return on Asset) and market performance which is proxied using PBV (Price Book Value).
“Regarding the impact of zakat regulation as a deduction of zakat, the results of the study indicate that companies (mandatory zakat) do not pay attention to regulatory factors either as a deduction from taxable income or as a reduction of tax debt,” he concluded.
Thus, the Leadership Council of the open session of doctoral promotion decided, Agus Munandar (1606940080) was declared graduated with Cumlaude title and succeeded in getting his 75th Doctorate in Accounting. Congratulations to Dr. Agus Munandar! (Des)
