Open AccessFamily Ownership, Corporate Governance, and Tax Aggressiveness
Author(s) -
Ida Subaida,
Triska Dewi Pramitasari
Publication year - 2021
Publication title -
sriwijaya international journal of dynamic economics and business
Language(s) - English
Resource type - Journals
eISSN - 2581-2912
pISSN - 2581-2904
DOI - 10.29259/sijdeb.v1i1.51-62
Subject(s) - corporate governance , business , stock exchange , accounting , affect (linguistics) , corporate tax , tax avoidance , government (linguistics) , monetary economics , double taxation , finance , economics , linguistics , philosophy
Companies generally prefer to pay small amounts of tax and use aggressive taxation strategies. This study aims to examine the effect of family ownership on tax aggressiveness moderated by corporate governance. Family ownership is measured by dummy variable 1 or 0, corporate governance with the proportion of the composition of independent commissioners, and tax aggressiveness using the Effective Tax Rate (ETR) on consumer goods companies listed on the Indonesian Stock Exchange in 2018. Data analysis using Moderated Regression Analysis (MRA). The results of this study indicate that family ownership does not affect tax aggressiveness, corporate governance has a positive effect on tax aggressiveness, and corporate governance strengthens the relationship between family ownership and tax aggressiveness. The research implication is that it can be an input in making decisions for the government regarding taxation, for companies related to decision making regarding corporate governance, as well as for investors for investment decisions.