Open AccessThe Effect of Good Corporate Governance on Tax Avoidance: An Empirical Study on Manufacturing Companies Listed in IDX period 2010-2013
Author(s) -
Vivi Adeyani Tandean,
Winnie Winnie
Publication year - 2016
Publication title -
ajar (asian journal of accounting research)
Language(s) - English
Resource type - Journals
eISSN - 2443-4175
pISSN - 2459-9700
DOI - 10.1108/ajar-2016-01-01-b004
Subject(s) - audit committee , accounting , business , tax avoidance , stock exchange , proxy (statistics) , corporate governance , quality audit , audit , corporate tax , empirical research , executive compensation , indonesian , finance , double taxation , statistics , mathematics , linguistics , philosophy
This study aims to obtain an empirical evidence about the effect of good corporate governance on tax avoidance which becomes a proxy of current ETR (Effective Tax Rate). The samples of this study were 120 manufacturing companies listed in Indonesian Stock Exchange in 2010 – 2013. The hypothesis testing used multiple regression analysis. The result of this study show that audit committee has a positive effect on tax avoidance in partial but the executive compensation, executive character, company size, institutional ownership, boards of commisioners' proportion, audit committee and audit quality have simultaneous effect to define tax avoidance.