Independent Commissioners' Role in CEO Tenure, Capital Intensity and Firm Size Tax Avoidance
DOI:
https://doi.org/10.22219/jrak.v14i4.34414Keywords:
Capital Intensity, ceo tenure, Company Size, Proportion of Independent Commissioner, Tax AvoidanceAbstract
Purpose: This research aims to understand the influence of CEO tenure, capital intensity, and company size on tax avoidance, with a focus on how these relationships are moderated by the proportion of independent commissioners in manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2022.
Methodology/approach: The study employs a purposive sampling strategy, selecting a total of 198 companies that meet the predefined criteria. The analysis relies on secondary data collected from the IDX website and utilizes panel data regression analysis on eViews 13.0 as the analytical technique.
Findings: The data reveals that company size significantly affects tax avoidance, with larger firms tending to avoid tax less. Conversely, CEO tenure and capital intensity do not appear to impact tax avoidance significantly. The proportion of independent commissioners has a moderating effect on the relationship between firm size and tax avoidance, but not on the relationships between CEO tenure, capital intensity, and tax avoidance.
Practical implications: These findings imply that corporate governance, represented by the proportion of independent commissioners, plays a crucial role in moderating the impact of company size on tax avoidance. However, its influence does not extend to the effect of CEO tenure and capital intensity on tax avoidance. This suggests that enhancing corporate governance practices could be a potent strategy for managing tax avoidance in large firms.
Originality/value: This research contributes valuable insights into the factors influencing tax avoidance. It is unique in its use of independent commissioners as a proxy for corporate governance, testing its role in moderating the relationship between independent variables and tax avoidance. This is a departure from previous studies, which typically treat independent commissioners as independent variables.
Downloads
References
Ahmed, A. A. A., Komariah, A., Chupradit, S., Rohimah, B., Nuswantara, D. A., Nuphanudin, N., Mahmudiono, T., Suksatan, W., & Ilham, D. (2022). Investigating the relationship between religious lifestyle and social health among Muslim teachers. HTS Teologiese Studies / Theological Studies, 78(4), 1–6. https://doi.org/10.4102/hts.v78i4.7335
Alhmood, M. A., Shaari, H., & Al-dhamari, R. (2020). CEO characteristics and real earnings management in Jordan. International Journal of Financial Research, 11(4), 255–266. https://doi.org/10.5430/ijfr.v11n4p255
Ananda, faricha aulia, Herawati, R., & Samasta, almira santi. (2023). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage Dan Pertumbuhan Penjualan Terhadap Penghindaran Pajak. Jurnal Akuntansi, Keuangan Dan Auditing, 4(1), 215–225.
Aulia, I., & Mahpudin, E. (2020). Effect of profitability, leverage and company size on tax avoidance. International Journal of Innovation, Creativity and Change, 6(8), 26–35.
Bulawan, H. A. N. R., Ilham, I., Ka, V. S. D., & Arifin, R. (2023). Pengaruh Profitabilitas, Leverage, Dan Ukuran Perusahaan Terhadap Tax Avoidance Pada Perusahaan Properti Dan Real Estate Yang Terdaftar Di Bei. Jurnal Pabean., 5(2), 184–196. https://doi.org/10.61141/pabean.v5i2.426
Dewi, & Pambudi, E. (2023). Pengaruh Gender Diversity, Kepemilikan Institusional Dan Dewan Komisaris Independen Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan Dengan Agresivitas Pajak Sebagai Pemoderasi. Journal of Accounting Science and Technology, 3(2), 54–64.
Doho, S. Z., & Santoso, E. B. (2020). Pengaruh Karakteristik Ceo, Komisaris Independen, Dan Kualitas Audit Terhadap Penghindaran Pajak. Media Akuntansi Dan Perpajakan Indonesia, 1(2), 169–184. https://doi.org/10.37715/mapi.v1i2.1408
Dwiyanti, I. A. I., & Jati, I. K. (2019). Pengaruh Profitabilitas, Capital Intensity, dan Inventory Intensity pada Penghindaran Pajak. E-Jurnal Akuntansi, 27, 2293. https://doi.org/10.24843/eja.2019.v27.i03.p24
Goldman, nathan c., Powers, K., & Williams, brian m. (2017). How does CEO tenure affect corporate income tax and financial reporting decisions?
Gula, V. E., & Mulyani, S. D. (2020). Pengaruh Capital Intensity Dan Deferred Tax Expense Terhadap Tax Avoidance Dengan Menggunakan Strategi Bisnis Sebagai Variabel Moderasi. Prosiding Seminar Nasional Pakar, 2012, 1–7. https://doi.org/10.25105/pakar.v0i0.6882
Handayani, M. F., & Mildawati, T. (2018). Pengaruh probilitas, leverage, dan ukuran perusahaan terhadap penghindaran pajak. Jurnal Ilmu Dan Riset Akuntansi, Volume 7(2), 1–16.
Hariyanto, F., & Utomo, D. C. (2018). Pengaruh Corporate Governance Dan Kompensasi Eksekutif Terhadap Agresivitas Pajak. Diponegoro Journal of Accounting, 7(4), 1–14.
Irawan, F., & Afif, A. R. (2020). Does Firms’ Life Cycle Influence Tax Avoidance? Evidence from Indonesia. International Journal of Innovation, Creativity and Change. Www.Ijicc.Net, 14(1), 1211–1229.
Julianti, J., & Ruslim, H. (2023). The Influence of Capital Intensity and Thin Capitalization on Tax Avoidance Moderated by Profitability. Indonesian Journal of Multidisciplinary Science, 2(10), 3373–3381. https://doi.org/10.55324/ijoms.v2i10.594
Kalbuana, N., Taqi, M., Uzliawati, L., & Ramdhani, D. (2023). CEO narcissism, corporate governance, financial distress, and company size on corporate tax avoidance. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2167550
Masrullah, Mursalim, & Suun, M. (2018). Pengaruh Kepemilikan Institusional, Komisaris Independen, Leverage Dan Sales Growth Terhadap Tax Avoidance Pada Perusahaan Manufaktur Di Bursa Efek Indonesia. 16(2), 142–165.
Maulida, N. & Yulianto. (2023). Pengaruh Kepemilikan Institusional, Karakter Eksekutif, dan Komisaris Independen terhadap Tax Avoidance. Jurnal Ekonomi Akuntansi, Manajemen, 2(2), 91–107.
Merkusiwati, N. K. L. A., & Damayanthi, I. G. A. E. (2020). Earnings Management and Different Tax Book To Explain Earnings Persistency. E-Jurnal Akuntansi, 30(1), 202. https://doi.org/10.24843/eja.2020.v30.i01.p15
Noviawan, lalu andika, & Utamie, dara nida. (2020). Pengaruh Managerial Tenure Terhadap Tax Avoidance. Jurnal Studi Akuntansi Dan Keuangan, 3(1), 1–14.
Nuswantara, D. A. (2023). Reframing whistleblowing intention: An analysis of individual and situational factors. Journal of Financial Crime, 30(1), 266–284. https://doi.org/10.1108/JFC-11-2021-0255
Olivia & Dwimulyani. (2019). Pengaruh Thin Capitalization Dan Profitabilitas Terhadap Penghindaran Pajak. Jurnal Akuntansi Dan Pembangunan, 2, 1–10.
Pambudi, J. E., Febrianto, H. G., & Fitriana, A. I. (2022). Determinan Earning Response Coefficient (Erc) Dengan Ukuran Perusahaan Dan Leverage Sebagai Eksogen. Dynamic Management Journal, 6(1), 31. https://doi.org/10.31000/dmj.v6i1.6525
Phuong Hong, N. T., & Tra My, P. T. (2024). Effects of financial characteristics on accounting conservatism of listed companies in Vietnam stock exchange. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2023.2289199
Prasatya, R. E., Mulyadi, J., & Suyanto, S. (2020). Karakter Eksekutif, Profitabilitas, Leverage, dan Komisaris Independen Terhadap Tax Avoidance Dengan Kepemilikan Institusional Sebagai Variabel Moderasi. Jurnal Riset Akuntansi & Perpajakan (JRAP), 7(02), 153–162. https://doi.org/10.35838/jrap.v7i02.1535
Pratomo, D., Nazar, M. R., & Pratama, R. A. (2022). Pengaruh Inventory Intensity, Karakter Eksekutif, Karakteristik CEO Terhadap Tax Avoidance pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) pada Tahun 2016-2020. Jurnal Ilmiah Universitas Batanghari Jambi, 22(3), 1999. https://doi.org/10.33087/jiubj.v22i3.2871
Prihatini, C., & Amin, M. N. (2022). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Intensitas Aset Tetap Dan Kualitas Audit Terhadap Tax Avoidance. Jurnal Ekonomi Trisakti, 2(2), 1505–1516. https://doi.org/10.25105/jet.v2i2.14669
Putri, Y. F. E., & Setiawan, I. (2022). Pengaruh Capital Intensity, Strategi Bisnis Dan Umur Perusahaan Terhadap Tax Avoidance. Jurnal Revenue : Jurnal Ilmiah Akuntansi, 3(2), 421–428. https://doi.org/10.46306/rev.v3i2.159
Rahmadani, Muda, I., & Abubakar, E. (2020). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, dan Manajemen Laba terhadap Penghindaran Pajak Dimoderasi oleh Political Connection. Jurnal Riset Akuntansi Dan Keuangan, 8(2), 375–392.
Ramadina, D., & Gunawan, J. (2023). The Influence of Profitability, Sales Growth, and Capital Intensity on Tax Avoidance. Jurnal Informatika Ekonomi Bisnis, 5, 1041–1048. https://doi.org/10.37034/infeb.v5i3.649
Rifai, A., & Atiningsih, S. (2019). Pengaruh Leverage, Profitabilitas, Capital Intensity, Manajemen Laba Terhadap Penghindaran Pajak. ECONBANK: Journal of Economics and Banking, 1(2), 135–142. https://doi.org/10.35829/econbank.v1i2.48
Rusdiana. (2018). Pengaruh Capital Intensity, Leverage, Kepemilikan Institusional, Dan Profitabilitas Terhadap Penghindaran Pajak.
Simorangkir, & Rachmawati, nurul aisyah. (2019). Pengaruh Proporsi Komisaris Independen, Kepemilikan Institusional Dan Capital Intensity Terhadap Penghindaran Pajak. Rabit : Jurnal Teknologi Dan Sistem Informasi Univrab, 1(1), 2019.
Sirén, C., Patel, P. C., Örtqvist, D., & Wincent, J. (2018). CEO burnout, managerial discretion, and firm performance: The role of CEO locus of control, structural power, and organizational factors. Long Range Planning, 51(6), 953–971. https://doi.org/10.1016/j.lrp.2018.05.002
Sri Utaminingsih, N., Kurniasih, D., Pramono Sari, M., & Rahardian Ary Helmina, M. (2022). The role of internal control in the relationship of board gender diversity, audit committee, and independent commissioner on tax aggressiveness. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2122333
Ulfa, E. K., Suprapti, E., & Latifah, S. W. (2021). The Effect of CEO Tenure, Capital Intensity, and Firm Size On Tax Avoidance. Jurnal Reviu Akuntansi Dan Keuangan, 11(1), 77–86. https://doi.org/10.22219/jrak.v11i1.16140
Widnyana, putu agus, Adnyana, i nyoman kusuma, & Sudiartana, i made. (2021). Pengaruh Proporsi Komisaris Independen, Komite Audit, Kepemilikan Institusional Dan Ukuran Perusahaan Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (Bei) Periode Tahun 2016-2018. JURNAL KARMA ( Karya Riset Mahasiswa Akuntansi ), VOL. 1 No(P-ISSN 2302-5514), 1259–1264.
Published
Issue
Section
License
Copyright (c) 2024 Nabilla Qomaria, Januar Eky Pambudi, Hendra Galuh Febrianto
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Jurnal Reviu Akuntansi dan Keuangan is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
