Do Corporate Governance Mechanism Influences Tax Avoidance and Firm Value?

Abstract

This research is motivated by the phenomenon that exists today that many companies have poor governance so that the practice of tax avoidance is increasingly carried out. The purpose of this study is to analyze the mechanism of corporate governance as measured by independent commissioners, institutional ownership, and the board of commissioners on tax avoidance which has implications for company value. Population of this research from manufacture industries. Total sample are 87 companies and 435 objects in the period 2013-2017 with purposive sampling method. The results of statistical analysis using PLS-SEM. The results shown in the direct effect path that is corporate governance mechanism is a significant factor in influencing company value in a positive direction, otherwise different results shown by corporate governance mechanisms that are has a negative significance to tax avoidance and tax avoidance has a positive significance to the value of the firm. This study also examines the indirect effect (indirect effect) where the results of the analysis show the mechanism of corporate governance has a positive significance to the firm value when mediated by the variable tax avoidance. The impact of this research is that the better corporate governance as a control and supervision mechanism, the higher value of the firm, whereas a lower corporate governance mechanism makes management opportunities to do tax avoidance higher.

Pengaruh Beban Pajak Tangguhan, Aset Pajak Tangguhan Dan Perencanaan Pajak Terhadap Manajemen Laba

“…Konflik kepentingan berakibat pada asimetri informasi. Sebagai pengelola langsung perusahaan, agen mengetahui lebih daripada priciple tentang perusahaan, sementara informasi yang didapatkan oleh prinsipal bersumber dari laporan keuangan yang disajikan oleh manajer (Mappadang, 2019).…”

Corporate Governance, Likuiditas, Tax Avoidance: Ukuran Perusahaan Sebagai Variabel Moderasi

“…Jika corporate governance kuat maka akan meningkatkan penerimaan Negara. Sebaliknya, jika corporate governance lemah kenaikan tarif pajak mengakibatkan penyimpangan, yang mengurangi penerimaan Negara (Desai & Dharmapala, 2011;Mappadang 2019). Dalam mekanisme corporate governance telah diatur penerapan yang harus dilakukan agar perusahaan terus berkembang namun tidak melanggar aturan dan sesuai etika (Dewi, 2019;Mangoting et al, 2020).…”

“…Hubungan teori agensi dengan penghindaran pajak apabila manajemen memiliki kepentingan untuk memanipulasi laba perusahaan yang nantinya akan mengurangi beban pajak, perilaku manipulasi laba yang dilakukan mengakibatkan bias informasi kepada pemegang saham (Wardani & Khoiriyah, 2018;Mappadang 2019;Mangoting et al 2020). Putu & Noviari (2015) mengungkapkan semakin tinggi likuiditas perusahaan tindakan untuk mengurangi laba semakin tinggi karena pembayaran pajak yang tinggi pula.…”

“…Agen akan mengalokasikan laba tahun sekarang ke tahun selanjutnya untuk menghindari pajak yang tinggi. Menurut Armstrong, et al 2015;Mappadang, 2019;Jamei, 2017 prinsip-prinsip corporate governance yang diterapkan diperusahaan yaitu fairness, akuntabilitas, transparansi dan tanggung jawab akan memberikan manfaat meminimalkan masalah keagenan. Dengan penerapan GCG yang tepat seperti keterbukaan informasi yang transparan, praktik penghindaran pajak dapat diminimalisir dan pembayaran pajak dilakukan secara maksimal (Rachman et al 2020;Ningrum et al, 2020;Mangoting et al, 2020;Rombebunga, 2019).…”

The Impact of Tax Avoidance, Sustainability Report Disclosure, and Earnings Management on Firm Value in the Digital Era With Corporate Governance as a Moderating Variables

“…To limit these actions, it is necessary to implement GCG as control or supervision in the company. Better corporate governance can act as a control and supervisory mechanism and vice (Mappadang, 2019). Research results from Minnick (2011) show that investor uncertainty can be reduced in companies that are better managed by taking a proactive approach to disclosing bad news early , and Earnings management can lead to efficiency with corporate (Minnick, 2011).…”