The Effect of Committees Under the Board of Commissioners, Profitability and Inventory Intensity on Tax Aggressiveness (The Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange 2014-2018)
Journal Title: Oblik i finansi - Year 2020, Vol 1, Issue 87
Abstract
The purpose of this study is to provide empirical evidence about the influence of committees under the board of commissioners, profitability, and inventory intensity on tax aggressiveness. The committees under the board of commissioners in this study consist of the audit committee, the nomination and/or remuneration committee, the risk committee, and the Corporate Governance Committee. All of them are proxied as a committee. Profitability is proxied by Return on Assets (ROA). ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings. Then, tax aggressiveness in this study is proxied by the Effective Tax Rate (ETR). Tax aggressiveness is an attempt by the company to reduce the income taxpayments to the state. The firms' effective tax rate (ETR), defined as some measure of tax liability divided by income, has long been used in the literature as a measure of active tax planning. This study uses firm size as a control variable, which is proxied by the Natural Logarithm of total assets (Ln SIZE). Whereas, the data used are secondary data obtained from the annual reports of 29 manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. The sampling method used in this study is purposive sampling. Testing the hypothesis in this study uses panel data regression. The results showed that the Audit Committee, Profitability proxied by Return on Assets (ROA), and inventory intensity affect tax aggressiveness. At the same time, the Nomination and Remuneration Committee, Risk Committee, and Corporate Governance Committee do not affect tax aggressiveness.
Authors and Affiliations
Tiara Puspita & Azwardi Azwardi & Lukluk Fuadah
Keywords
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- EP ID EP682783
- DOI 10.33146/2307-9878-2020-1(87)-114-122
- Views 200
- Downloads 0
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