The Effect of Tax Avoidance, Company Size, and Good Corporate Governance on the Cost of Debt

Abstract

This study aims to examine the effect of tax avoidance, company size, and good corporate governance on the cost of debt in property, real estate and building construction companies listed on the Indonesia Stock Exchange (IDX) during 2019 to 2021. The research method applies the quantitative with secondary data obtained from annual reports obtained from the website www.idx.co.id with this type of research using purposive sampling technique used to obtain sample data. The samples obtained in this study amounted to 26 company data with an observation period of 3 consecutive years. Then obtained 78 data used as samples. data analysis techniques in this study using multiple linear regression techniques. The results showed that tax avoidance had a significant negative effect on the cost of debt. Company size has no effect on the cost of debt. Good corporate governance which is proxied by institutional ownership, managerial ownership, independent board of commissioners, and audit committee has a significant negative effect on the cost of debt.