Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance and Corporate Tax Avoidance: an Interactive Effects (Evidence from Indonesia Capital Market)
Dublin Core
Title
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance and Corporate Tax Avoidance: an Interactive Effects (Evidence from Indonesia Capital Market)
Corporate Governance and Corporate Tax Avoidance: an Interactive Effects (Evidence from Indonesia Capital Market)
Subject
Corporate governance mechanism; Tax avoidance; Board of commissioners; Independent commissioners and institutional ownership
Description
This study shows that the phenomenon arising from low governance practices is identified as one of the causes of the global financial crisis and corporate financial scandals that have an effect on the increase of tax avoidance. In addition, research in Indonesia that examines tax avoidance information by taking into account corporate governance mechanisms is still less consistent and is such a new perspective that it becomes a main consideration for this study. Likewise, the calculation using the Avoidance Tax Rate proxy developed in this study was conducted to test how much tax avoidance has been done by companies. The population for this study was taken from the manufacturing industries listed on the Indonesia Stock Exchange from 2015-2019 assumed to have conducted tax avoidance. The total samples of 87 companies were selected by following a purposive sampling procedure. The statistical analysis using multiple regression shows that the board of commissioners had a significant negative effect on tax avoidance; while, Independent commissioners had a significantly negative effect on tax avoidance and institutional ownership on tax avoidance. This study indicates that the interactive effect of corporate governance and tax avoidance is the better and optimal corporate governance as a control mechanism and the balancing power. The lower corporate governance mechanism will make it easier for companies to take tax avoidance actions.
Creator
Agoestina Mappadang
Source
DOI: https://doi.org/10.26905/jkdp.v25i1.5043
Publisher
Universitas Merdeka Malang
Date
January 2021
Contributor
Sri Wahyuni
Rights
ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Files
Collection
Citation
Agoestina Mappadang, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance and Corporate Tax Avoidance: an Interactive Effects (Evidence from Indonesia Capital Market),” Repository Horizon University Indonesia, accessed November 21, 2024, https://repository.horizon.ac.id/items/show/4762.
Corporate Governance and Corporate Tax Avoidance: an Interactive Effects (Evidence from Indonesia Capital Market),” Repository Horizon University Indonesia, accessed November 21, 2024, https://repository.horizon.ac.id/items/show/4762.