Purpose The purpose of this paper is to analyze the effect of internal control on tax avoidance analyzing internal (family ownership) and external (environmental uncertainty) factors on the effectiveness of internal control in preventing tax avoidance. Design/methodology/approach First, the authors examine the direct effect of the effectiveness of internal control on tax avoidance. Second, the authors examine the effect of moderation of family ownership and environmental uncertainty on the relationship of the effectiveness of internal control on tax avoidance. Third, the authors divide the full sample into two groups, high and less effectiveness of internal control to examine the direct effect of internal control effectiveness on tax avoidance and when considering moderating variables. Fourth, the authors use two different measures of the effectiveness of internal control. Findings This research found that effective internal control can reduce tax avoidance. Family ownership affects the relationship between internal control and tax avoidance, but environmental uncertainty does not influence the relationship between internal control and tax avoidance. Practical implications Internal control increases compliance with rules and policies, so companies must design and implement effective internal control to prevent tax avoidance activities in violation of tax regulations. Originality/value In contrast to previous studies, this study measures the effectiveness of internal control using the index of internal control practice disclosure and considers internal and external factors that can affect the effectiveness of internal control to prevent tax avoidance.

Purpose This study aims to analyse the effect of corporate governance on investment efficiency and the moderating impact of industry competition on the relationship between corporate governance and investment efficiency. Design/methodology/approach The research sample includes a total of 36 publicly listed companies assessed by the Indonesian Institute for Corporate Directorship from 2012 to 2018. Testing is performed on full sample and overinvestment and underinvestment subsamples. Additional testing is further carried out using the generalized method of moments to address endogeneity problems and a robustness test is performed to assess the estimated investment efficiency. Findings Corporate governance can increase investment efficiency and the effectiveness of corporate governance is found to drop when the level of industry competition is higher. Practical implications The results of the present study corroborate the suggestion that companies need to implement corporate governance mechanisms. Furthermore, designing a corporate governance mechanism requires the scrutiny of the external environment, including industry competition. Originality/value The present study adds the profitability factor in the calculation of investment efficiency levels. This study also considers external factors that can influence the effectiveness of corporate governance in determining investment efficiency.

Tax avoidance is the lawful minimization of income tax by employing legal methods. This study aims to assess the effects of top management characteristics and capital structure on tax avoidance, measured with Effective Tax Rate (ETR). Our panel data comprise public manufacturing corporations, observed from 2010-2015 (n= 452). Based on our panel analysis using random effects model on EViews, we find that tax avoidance: (i) is negatively influenced by independent directors (ii) is positively affected by foreign directors; (iii) is influenced by capital structure, measured with firm leverage, and (iv) positively affects current profitability, measured with Return on Equity. Meanwhile, the influence of female directors is found to be nonexistent. We also offer empirical evidence that board of directors' characteristics influence tax avoidance through financing decisions. The findings of this study suggest that firm capital structure determination is motivated by the intention to avoid taxes. SARI PATI Penghindaran pajak adalah minimisasi pajak penghasilan yang sah menurut hukum, dengan menggunakan metode hukum. Penelitian ini bertujuan untuk menilai pengaruh karakteristik manajemen puncak dan struktur modal pada penghindaran pajak, diukur dengan Tarif Pajak Efektif (ETR). Data panel kami terdiri dari perusahaan manufaktur publik, diamati dari 2010-2015 (n = 452). Berdasarkan analisis panel kami menggunakan model efek acak pada eViews, kami menemukan bahwa penghindaran pajak: (i) dipengaruhi secara negatif oleh para direktur independen (ii) dipengaruhi secara positif oleh direktur asing; (iii) dipengaruhi oleh struktur modal, diukur dengan leverage perusahaan, dan (iv) secara positif mempengaruhi profitabilitas saat ini, diukur dengan Return on Equity. Sementara itu, pengaruh direktur perempuan ditemukan tidak ada. Kami juga menawarkan bukti empiris bahwa karakteristik dewan direksi mempengaruhi penghindaran pajak melalui keputusan pendanaan. Temuan penelitian ini menunjukkan bahwa penentuan struktur modal perusahaan dimotivasi oleh niat untuk menghindari pajak.

Tujuan penelitian – Tujuan penelitian ini adalah untuk menganalisis pengaruh diversifikasi terhadap kinerja keuangan perusahaan dan menganalisis pengaruh latar belakang pendidikan CEO terhadap hubungan diversifikasi dengan kinerja keuangan perusahaan.Desain/Metodologi/Pendekatan – Teknik sampel adalah purposive sampling method pada objek penelitian perusahaan manufaktur periode penelitian 2017-2018. Unit analisis sebanyak 75 perusahaan manufaktur dengan teknik analisis regresi linier berganda.Temuan – Strategi Diversifikasi berpengaruh positif terhadap Kinerja Keuangan dan Latar Belakang Pendididikan CEO memoderasi pengaruh Strategi Diversifikasi terhadap variabel Kinerja Keuangan.Keterbatasan penelitian – Hasil penelitian ini menunjukkan bahwa Strategi Diversifikasi berpengaruh terhadap Return On Equity atau Kinerja Keuangan pada Perusahaan Manufaktur yang terdaftar di BEI tahun 2017-2018 sebesar 19,8% sedangkan sisanya sebesar 80,2% dijelaskan oleh faktor-faktor lain di luar penelitian ini seperti Corporate Governance, CSR, Karakteristik Eksekutif, dan Komite Audit.Originality/value – Penelitian ini memberikan gambaran tentang kinerja keuangan yang terdapat dalam Ilmu Manajemen dengan menggunakan rasio-rasio keuangan.Keywords: Strategi Diversifikasi, Return On Equity, Latar Belakang Pendidikan CEO.