The Effect of the Proportion of the Independent Board of Commissioners and the Structure of the Board of Directors and Audit Committee on Tax Avoidance and their Impact on Company Value

Abstract

Until now, the tax authorities have indicated that there are still tax avoidance practices by companies in Indonesia. The phenomenon shows that government revenues from the tax sector have not been maximized, as can be seen from the realization of tax revenues that have not been achieved from the target from 2009 to 2019. The purpose of this study is to examine the effect of the proportion of independent commissioners, the composition of the board of directors, the audit committee on tax avoidance, and its impact on firm value. The population of this study is all manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. With the purposive sample method. Samples obtained 61 companies with a span of 5 years, a total of 305 samples. The instrument used to analyze the hypothesis is path analysis. This study concludes that the Audit Committee has a significant effect on Tax Avoidance, while the proportion of the Board of Independent Commissioners and the composition of the Board of Directors has no significant effect on Tax Avoidance. The proportion of Independent Commissioners has a significant influence on Company Value. Other variables The composition of the Board of Directors, the Audit Committee, and Tax Avoidance do not have a significant effect on Company Value.