Open AccessManagerial and Financial Capabilities Become Determining Factors of Tax Avoidance Practice in Indonesia
Author(s) -
Alamanda Rizka Hasanah,
Ni Putu Eka Widiastuti
Publication year - 2022
Publication title -
international journal of finance and banking studies
Language(s) - English
Resource type - Journals
ISSN - 2147-4486
DOI - 10.20525/ijfbs.v11i1.1702
Subject(s) - tax avoidance , business , stock exchange , audit committee , leverage (statistics) , profitability index , accounting , audit , uncertainty avoidance , corporate tax , finance , public economics , economics , double taxation , machine learning , computer science , market economy , individualism , collectivism
Differences in interests related to taxation between the government and companies are still a current issue. The purpose of this study is to examine the impact of managerial and financial competencies on tax avoidance in Indonesian manufacturing companies. 149 financial statements of companies listed on the Indonesia Stock Exchange were used to compile the data. Panel data regression with a random-effects model was used to test and analyze the data. The findings revealed that financial challenges and managerial ability had a detrimental impact on tax avoidance, but there was no influence between the audit committee on tax avoidance. As for the control variable, there is a positive influence between profitability on tax avoidance, and there is no influence between leverage on tax avoidance.