Keywords: corporate governance, Company size, Tax avoidance
Purpose â€“ This study aims to examine the effect of corporate governance and company size on tax avoidance in manufacturing companies.
Methodology â€“ The population includes all the manufacturing companies listed on the Indonesia Stock Exchange during 2017-2019 and the 288 companies used as samples were selected through the purposive sampling method. A regression model was used for analysis.
Findings â€“ The results showed that institutional ownership, independent commissioners, and audit committee did not affect tax avoidance but managerial ownership and firm size have some influence. It was recommended that companies improve good governance by reducing their tax avoidance policies while other variables such as audit quality, executive character, liquidity, accounting conservatism, and capital intensity are suggested to be added to further studies related to tax avoidance.
Originality â€“ The novelty of this study is examine all corporate governance mechanisms consist of institutional ownership, independent commissioner, audit committee, and managerial share ownership on tax avoidance.
Aburajah, L., Maali, B., Jaradat, M. & Alsharairi, M. (2019). Board of directorsâ€™ characteristics and tax aggressiveness: Evidence from Jordanian listed firms. Theoretical Economics Letters, 9, 2732-2745.
Aliani, K., & Zarai, M. A. (2012). Demographic diversity in the board and corporate tax planning in American firms. Business Management and Strategy, 3(1), 72-86.
Alviyani, K. (2016). Pengaruh Corporate Governance, Karakter Eksekutif, Ukuran Perusahaan, dan Leverage Terhadap Penghindaran Pajak (Tax Avoidance). Jurnal Online Mahasiswa, 3 (1).
Amstrong, C. S, J. L. Blouin, A. D. Jagolinzer, D. F. Larcker, 2015, Corporate Governance, Incentive and Tax Avoidance, Journal of Accounting and Economics, 60 (1), 1-17.
Alzoubi, E. S. S. (2016). Ownership structure and earnings management: Evidence from Jordan.
International Journal of Accounting and Information Management, 24(2), 135â€“161.
Arismajayanti, N. P. A. And I. K. Jati, 2017, Influence of Audit Committee Competence, Audit Committee Independent, Independent Commissioner and Leverage On Tax Aggressiveness, Journal of Auditing, Finance, and Forensic Accounting, 5 (2), 109-119.
Aronmwan, E. J. and C. Okafor, 2019, Corporate Tax Avoidance: Review of Measure and Prospects, International Journal of Accounting and Finance, 8 (2), 21-42.
Bousaidi, A and Hamed, M. S., 2019, The Impact of Governance Mechanisms on Tax Aggressiveness: Empirical Evidence from Tunisian Context, Asian Economic and Social Society, 5 (1), 1-12.
Cahyono. (2016). Pengaruh Komite Audit, Kepemilikan Institusional, Dewan Komisaris, Ukuran Perusahaan (Size), Leverage (Der) Dan Profitabilitas (Roa) Terhadap Tindakan Penghindaran Pajak (Tax Avoidance). Journal of Accounting, Universitas Padjajaran, 2(2).
Chukwu, G. J., E. Appah, A. Awogbade, 2022, Corporate Governance Mechanism and Tax Aggressiveness of Listed Consumer Goods Firms in Nigeria, Conference Paper.
Chytis, E; S. Tasios, & N. Gerantonis, (2018), Tax avoidance and corporate governance attributes: evidence from listed companies in Greece, 15th International Conference on Enterprise, Systems, Accounting, Logistics and Management. Kefalonia Greece
Coca-Cola Diduga Akali Setoran Pajak, (2014, June 13), Source https://money.kompas.com/read/2014/06/13/1135319.
Damayanti, F., & Susanto, T. (2015). Pengaruh Komite Audit, Kualitas Audit, Kepemilikan Institusional, Risiko Perusahaan Dan Return on Assets Terhadap Tax Avoidance. Universitas Negeri Islam Jakarta, 5(2).
Dermawan, I. G. H., & Sukartha, I. M. (2014). Pengaruh Penerapan Corporate Governance, Leverage, Return On Assets, Dan Ukuran Perusahaan Pada Penghindaran Pajak. E-Jurnal Akuntansi Universitas Udayana, 9(1), 143â€“161.
Desai, M., and D. Dharmapala, 2006, Corporate Tax Avoidance and High-Powered Incentives,
Journal of Financial Economics, 79, 145-179.
Diantari, P. R., & Ulupui, I. G. K. (2016). Pengaruh Komite Audit, Proporsi Komisaris Independen, Dan Proporsi Kepemilikan Institusional Terhadap Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 16(1).
Dyreng, S. D., M. Hanlon, E. L. Maydew, Long-Run Corporate Tax Avoidance, The Accounting Review, 83 (1), 61-82.
Fadhila. (2017). Pengaruh Kepemilikan Manajerial, Komisaris Independen dan Komite Audit Terhadap Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 1803â€“1820.
Ginting, S. (2016). Pengaruh Corporate Governance dan Kompensasi Rugi Fiskal terhadap Penghindaran pajak dengan Ukuran Perusahaan sebagai Variabel Moderating. 6 (2).
Hasibuan, D.H.M. & Khomsiyah, E. (2019). Do corporate social responsibility and corporate governance affect tax aggressiveness? Evidence from Indonesia. Journal of Accounting, Business and Finance Research, 7(1), 8-16.
Jamie, R., 2017, Tax Avoidance and Corporate Governance Mechanisms: Evidence from Tehran Stock Exchange, International Journal of Economics and Financial Issues, Econjournals, 7 (4), 638-644.
Kalbuana. (2017). Pengaruh Kepemilikan Manajerial, Beban Pajak Tangguhan dan Tingkat Pajak Efektif Terhadap Penghindaran Pajak di Indonesia. Magistra, 100.
Kasim, F.M. and S. Natrah, 2019, Determinants of Corporate Tax Avoidance Strategis among Multinational Corporations in Malaysia, International Journal of Research in Business Studies and Management, 6 (5), 1-6.
Khan, M., Srinivasan, S., & Tan, L. (2017). Institutional ownership and corporate tax avoidance: New evidence. Accounting Review, 92(2), 101â€“122.
Kovermann, J and P. Velte, 2019, The impact of corporate governance on corporate tax avoidance- A literature review, Journal of International Accounting, Auditing and Taxation, 36.
Kurniasih, T., & Sari, M. R. (2013). Pengaruh Return on Assets, Leverage, Corporate Governance, Ukuran Perusahaan dan Kompensasi Rugi Fiskal Pada Tax Avoidance. Buletin Studi Ekonomi, 18 (1).
Manhulae. (2016). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial, dan Komite Audit Terhadap Tax Aovidance. E-Proceeding of Management, Universitas Telkom., 3(2), 1626.
Mappadang, A. (2019). Do corporate governance mechanism influences tax avoidance and firm value? International Journal of Academic Research in Business and Social Sciences, 9(10), 203-217.
McGuire, S. T., Wang, D., & Wilson, R. J. (2014). Dual class ownership and tax avoidance.
Accounting Review, 89(4), 1487â€“1516.
Ogbeide, S.O. & Obaretin, O. (2018). Corporate governance mechanisms and tax aggressiveness of listed firms in Nigeria. Amity Journal of Corporate Governance, 3(1), 1-12.
Praditasari, N. K. & Setyawan, P. E. (2017). Pengaruh Good Corporate Governance, Ukuran Perusahaan, Leverage Dan Profitabilitas Pada Tax Avoidance. E-Jurnal Akuntansi, 19(2), 1229â€“1258.
Prasetyo, I., & Pramuka, B. A. (2018). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial Dan ProporsiDewan Komisaris Independen Terhadap Tax Avoidance. Jurnal Ekonomi, Bisnis, Dan Akuntansi (JEBA), 20 (02).
Richardson, G., Taylor, G., & Lanis, R. (2013). The impact of board of director oversight characteristics on corporate tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy, 32(3), 68-88.
Sadjiarto, A., S. Hartanto, Natalia, S. Octaviana, Analysis of the Effect of Business Strategy and Financial Distress on Tax Avoidance, 2020, Journal of Economics and Business, 3 (1), 238- 246.
Salawu, R.O. & Adedeji, Z.A. (2017). Corporate governance and tax planning among non- financial quoted companies in Nigeria. African Research Review: An International Multi- Disciplinary Journal, 11(3), 42-59.
Sunarsih, U., & Handayani, P. (2017). Pengaruh Corporate Governance terhadap penghindaran pajak pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi, 12(2), 163â€“185.
Tarmidi, D., P. N. Sari, F. Sormin, 2020, The Impact of External Control on Tax Avoidance, South Asian Research Journal of Humanities and Social Sciences, 2 (4), 356-360.
Tandean, V.A. & Winnie, (2016). The effect of good corporate governance on tax avoidance: An empirical study on manufacturing companies listed in IDX period 2010 â€“ 2013. Asian Journal of Accounting Research, 1, 28-38.
Van Der Pilos, N. (2017). Does the board of directors influence tax avoidance?, Unpublished Master Thesis, The Erasmus School of Economics, U.K).
Waluyo, W., C. M. Doktoralina, 2016, Factors Affecting Tax Avoidance through Thin Capitalisation: Multinational Interprises in Indonesia, International Journal Management, Business Research, 8 (3), 210-216.
Waruwu, F. Z. and E. Kartikaningdyah, 2019, The Effect of Firm Size, ROA and Executive Character on Tax Avoidance, Advances in Socil Science, Education and Social Science, 377, 117-124.
Yuniarwati, Ardana, I. C., Dewi, S. P., Lin, C., 2017, Factors that Influence of Tax Avoidance in Indonesia Srock Exchange, Chinese Business Review, 16 (10), 510-517.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.