PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP TAX AVOIDANCE

Abstract

This research aimed to examine the effect of Good Corporate Governance on tax avoidance of manufacturing companies which were listed on Indonesia Stock Exchange (IDX) 2014-2018. While, the independent variable was Good Corporate Governance which was measured by institusional ownership, managerial ownership, independent commisioner, board of director, and audit quality. Meanwhile, the dependent variable was tax avoidance in which measured by Effective Tax Rate. Additionally, for profit-oriented company, tax wa considered expense in which decreased profit. Therefore, one way to get small tax is through tax avoidance. The research was quantitative. Moreover, the data collection technique used purposive sampling. In line with, there were 23 companies as sample with 115 observation during 2014-2018. Furthermore, the data analysis technique used multiple linear analysis with the software SPSS 21. The research result concluded institusional ownership had possitive effect on tax avoidance. Likewise, managerial ownership had positive effect on tax avoidance. On the other hand, independent commisioner as well as board of derector and audit quality did not affect the tax avoidance.
Keywords: tax avoidance, good corporate governance