The Effect of Good Corporate Governance, Company Sizes, and Leverage of Tax Avoidance

Abstract

The purpose of this study is to analyze how much influence the board of commissioners, audit committee, institutional ownership, company size and leverage on tax avoidance on food and beverage sector companies listed on the Indonesia Stock Exchange. The factors tested in this study are tax avoidance as the dependent variable while the size of the board of commissioners, audit committee, institutional ownership, firm size and leverage as independent variables. The sample of this study consisted of 15 food and beverage sector companies listed on the Indonesia Stock Exchange (IDX) and submitted financial statements consistently in the period 2012-2015. The data used in this study is secondary data and the selection of samples using purposive sampling method. The analytical tool used is multiple regression analysis to examine the effect of the size of the board of commissioners, audit committee, institutional ownership, company size and leverage on tax avoidance. KEYWORDS: Good Corporate Governance, Company Size, Leverage, Tax Avoidance.

Pengaruh Komite Audit, Rasio Keuangan, Dan Corporate Social Responsibility Terhadap Penghindaran Pajak

“…Perusahaan menggunakan leverage untuk menghasilkan keuntungan lebih besar daripada biaya aset serta sumber dana, sehingga meningkatkan keuntungan pemegang saham. Sebaliknya, leverage juga meningkat variabilitas keuangan (risiko), karena jika perusahaan ternyata mendapatkan keuntungan yang lebih rendah dari biaya tetapnya maka penggunaan leverage akan mengurangi keuntungan pemegang saham (Listyaningsih et al 2019).…”

“…Ukuran perusahaan merupakan skala atau nilai yang dapat mengklasifikasikan perusahaan ke dalam kategori besar atau kecil berdasarkan total aset, log, ukuran, dan sebagainya. Semakin besar total aset maka semakin besar juga ukuran perusahaan, sehingga memungkinkan perusahaan yang ada untuk melakukan tindakan penghindaran pajak dari setiap transaksi (Listyaningsih et al 2019).…”

Assessment of Forest Degradation and Food Insecurity of Farming households in Ibadan-Ibarapa Agricultural Zone of Oyo State, Nigeria

“…The procedure for preparing the financial statements is not just a journal posting process but goes further to the validity of transactions and supporting documents, including transactions related to taxation. Some studies found a negative effect of audit quality on tax avoidance or positive impact [8,9].…”