The unfavorable effect of ceo narcissism: The role of the audit committee

Tax is one of the obligations that must be fulfilled by the taxpayer. This condition will lead the taxpayers to do tax avoidance. Tax Avoidance is an action to reduce taxable profits through tax planning in order to obtain a low tax expense. The purpose of this research is to examine the impact of profitability, sales growth, leverage, and audit committee on tax avoidance which is measured using effective tax rates on manufacturing companies listed on Indonesian Stock Exchange for the period of 2016 to 2018. The population in this research are all manufacturing companies listed on Indonesian Stock Exchange (IDX) during the period of 2016-2018. The sampling technique in this research used a purposive sampling method and obtained 32 manufacturing companies. The analysis technique in this research used multiple linear regression analysis techniques. The results of this research concluded that profitability (ROA) had a positive impact on tax avoidance, sales growth had a positive impact on tax avoidance, leverage as measured by DER had a positive impact on tax avoidance, while the audit committee had a negative impact on tax avoidance. The coefficient of determination in this research amounted to 0.855 which means that the tax avoidance variable is impacted by 85.5% by the variables in this research, the rest is impacted by other variables outside this research.

This study was conducted in order to empirically test the influence of independent commissioners and audit committee on tax avoidance. The population in this study in all LQ45 companies listed on the Indonesia Stock Exchange (IDX) in 2022-2024. The research sample was obtained by the Purposive Sampling method of 23 companies or as many as 69 companies in 5 research periods. The analysis tool used is EViews-12, with technical data analysis in the form of selected modeling tests (fixed effect models), classic assumption tests (normality tests, multicollinearity tests and heteroscedasticity tests), panel data regression analysis, and hypothesis test (T test, F test, and coefficient determination test). In this study Tax Avoidance was measured using Effective Tax Rate (ETR) which is to divide the tax burden with profit before tax. ETR results that are close to number 1 show the more obedient to the company in fulfilling its tax obligations. Independent Commissioner is measured by dividing the number of independent commissioners in the company with the entire number of Board of Commissioners. The Audit Committee is measured by the total number of audit committees in the company. The results showed that independent commissioners had a significant effect on the positive direction on tax avoidance and the audit committee had a significant effect on tax avoidance in a positive direction. Based on the results of the study shows that the independent commissioners and audit committees have functioned well in conducting supervision so that tax avoidance can be minimized.

This study investigates the effectiveness of corporate governance components in detecting corporate tax avoidance and how effectiveness is affected when firms are under financial pressure. This study uses three components of corporate governance: board of directors, board of commissioners, and audit committees while corporate tax avoidance is measured using effective tax rate (ETR). This study employs data from manufacturing companies listed on the Indonesian Stock Exchange. Sample was selected using purposive sampling method. Data analysis was conducted on 163 panel data from 62 companies in 2016 - 2018 using moderated regression analysis. The results prove that proportion of independent directors and audit committees as predictors of ETR. Whereas proportion of independent commissioners and board of directors and board of commissioners meeting ratio have no effect on ETR. It also shows that financial pressure moderates the relationship between the proportion of independent directors and ETR. Financial pressure also moderates the relationship between the audit committee and ETR. On the contrary, financial pressure does not moderate the association of independent commissioners and ETR. The results also show that external audit as a control variable related to ETR. This study contributes to the literature on the importance of the effectiveness of corporate governance components in reducing tax avoidance and how financial pressure affects their effectiveness.

Purpose: this study aims to study the effect of financial performance and corporate governance on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange in 2015–2019.Methods: financial performance and corporate governance as independent variables with financial performance indicators are ROA, ROE and Leverage while indicators of corporate governance are the board of commissioners, audit committee and external audit quality. Tax avoidance as the dependent variable was measured by using ETR (effective tax rate). This research uses purposive sampling to get a sample size of 60 companies around 5 years and use common effect panel data regression analysis. The data in this study were analyzed with Eviews 9.0.Results: (1) Financial Performance as measured by ROA, ROE and leverage. ROA and leverage has an indication on tax avoidance while ROE has no an indication on tax avoidance in listed manufacturing companies on the IDX in 2015-2019. (2) Corporate Governance as measured by the board of commissioners, audit committee and external audit quality shows that has an indication on tax avoidance in listed manufacturing companies on the IDX in 2015–2019.Conclusions and Relevance: the results of the study prove that ROA, leverage, the board of commissioners, audit committee and external audit quality have a significant and significant effect on tax avoidance, but the ROE variable has no significant effect on tax avoidance in listed manufacturing companies on the IDX in 2015–2019.

The purpose of this research is to empirically examine the effect of capital intensity, firm age, audit committee and board gender diversity on tax avoidance. Tax avoidance in this study was measured using the Effective Tax Rate (ETR). This research is a quantitative research and uses sector energy sub sector mining companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 period as research objects. The sample selection technique used purposive sampling with a total of 40 samples obtained from 8 sector energy sub sector mining companies. Hypothesis testing in this study was carried out using E-views software version 16. Based on the results of the hypothesis testing that had been carried out, it can be concluded that 1) capital intensity has effect on tax avoidance; 2) firm age has no effect on tax avoidance; 3) the audit committee has no effect on tax avoidance, 4) board gender diversity has no effect on tax avoidance.

This study aims to determine the effect of corporate governance consisting of executive compensation variables, executive characteristics or characteristics, company size, institutional ownership, the proportion of the board of commissioners, audit committee, and audit quality applied to companies against tax avoidance measures as measured by ETR (Effective Tax Rate). Stakeholders such as investors, potential investors, and especially company management also need to know the importance of applying good corporate governance to companies, especially to minimize tax avoidance. The sample of this study amounted to 607 secondary data from a total of 150 non-financial companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period and did not include companies engaged in property, real estate, and construction. Data were analyzed using panel regression method and processed using SPSS and Eviews software. The results obtained from this study shows that executive compensation variables and audit quality significantly positive effect on ETR or have a negative influence on tax avoidance. Variable executive characteristics and firm size have a significant negative effect on ETR or have a positive influence on tax avoidance. While other variables, namely institutional ownership, number of independent commissioners, and audit committees do not seem to have a significant effect on tax avoidance.

This study aims to examine the effect of Institutional Ownership, Independent Commissioners, and Audit Committees partially on Tax Avoidance. The approach to this study is quantitative. This study uses data from companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 - 2023 which are on the Main Listing Board in the health sector. Sampling was carried out by purposive sampling with the criteria of routinely reporting annual reports from 2019 - 2023 from health companies with the period January to December. In this study, there were 16 companies that met the sample with a total of 70 observation data. Measurement of Institutional Ownership is by dividing the proportion of shares owned by the number of shares issued. Independent commissioners are measured by calculating independent commissioners by the total number of commissioners. The audit committee is measured by calculating the number of audit committee meetings per year. Tax avoidance is measured using the Effective Tax Rate (ETR) by dividing income tax burden by profit before tax. The inferential analysis technique of this study uses panel data regression analysis technique with the help of Eviews 12 statistical application. The results of the study indicate that Institutional Ownership has no effect on Tax Avoidance, so the first hypothesis is not proven. The proportion of Independent Commissioners has no effect on Tax Avoidance, so the second hypothesis is not proven. The Audit Committee has no effect on Tax Avoidance, so the third hypothesis is not proven.

The purpose of this research was to determine the effect of leverage, company size and other factors on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange by obtaining empirical evidence. The factors used as independent variables in this research are leverage, company size, capital intensity, profitability, audit committee, and sales growth which can influence the occurrence of tax avoidance as the dependent variable by using the Effective Tax Rate (ETR) measurement. The population used in this research are all manufacturing companies listed on the Indonesia Stock Exchange during the 2019-2021 period. The sample selection was carried out using a purposive sampling method with predetermined criteria and resulted in 58 companies with 174 data that met the criteria and could be used as research samples. Data analysis in this research used multiple regression methods with several tests. From the tests and analysis carried out, this research shows that leverage has a positive effect on tax avoidance because greater leverage will increase interest expense as a deductible expense thereby reducing the level of tax expense and profitability has a negative effect on tax avoidance because the amount of profitability illustrates the amount of company profits that increase tax expense while other factors, namely company size, capital intensity, audit committee, and sales growth have no effect on tax avoidance. Keywords : Tax avoidance, leverage, capital intensity, profitability

This study was conducted to examine the effect of profitability on tax avoidance with the audit committee as a moderating variable. Tax avoidance as the dependent variable measured using the effective tax rate (ETR), profitability as an independent variable measured using return on assets (ROA), audit committee as a moderating variable measured using the number of audit committees of companies listed on the Indonesia Stock Exchange (IDX), and inventory intensity as a measurable control variable by comparing total inventory with total assets. This research was conducted at food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for a period of 5 years, namely 2017 to 2021. The sample used a purposive sampling technique so that there were 16 companies that matched the comparison and obtained 80 observational data. The data used in this study is secondary data in the form of financial statements of food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) which can be downloaded via www.idx.co.id. Data analysis techniques using multiple linear regression analysis and moderate regression analysis (MRA) and is processed using SPSS 21 version program. The results showed that profitability had a significant positive effect on tax evasion and the audit committee was not able to moderate the relationship between profitability and tax evasion.

Purpose This study aims to examine the association between the various characteristics of audit committee (AC) (female percentage, size, expertise and independence) and tax avoidance (TA) activities and investigate the moderating effect of audit quality on the AC characteristics–TA relationship. Design/methodology/approach This study used the secondary data of the listed institutions in Amman Stock Exchange (2009–2021), whereby the effective tax rate (ETR) was used as a measurement of the TA. In addition, the data set used in this study was provided by the ASE website. Findings The results revealed that AC size has a positive and significant effect on TA. By contrast, the percentage of the female in AC and AC expertise have a negatively significant influence on TA. Further, AC independence was found to have an insignificant influence on TA. The results also showed that audit quality moderates the AC characteristics–TA relationship. Research limitations/implications This study is motivated by the decisions of the Jordanian government to reduce TA behaviors and enhance tax revenue collected from various institutions. Consequently, the outcomes provide significant implications for the Jordanian listed companies to enhance the AC function and big audit firms in constraining and restricting TA behaviors. Practical implications This study contributes to the existing literature by examining the effect of under-researched mechanisms such as female percentage and AC characteristics. It also presents significant insights into the conflicting outcomes on AC characteristics and audit quality with TA in Jordan. Originality/value This study extends the existing literature by investigating the direct and indirect effects of AC characteristics and audit quality on TA. Therefore, this is a pioneering study investigating the joint impact of the AC characteristics on TA. It also determines whether women are indeed more likely to avoid risks. To the best knowledge of the authors, this is the first study that investigates the interaction effects between AC characteristics and audit quality on the TA behaviors in Jordan.

Tax avoidance is the hottest issue in the last five years. It is reinforced with the Tax Amnesty Program by the Directorate General of Taxation (DJP), which began in June 2016. Therefore, this study aims to obtain empirical evidence of the influence of good corporate governance and executive compensation on corporate tax avoidance. This study used 215 banking companies listed on the Indonesia Stock Exchange (IDX) for 2014-2018. This study using a purposive sampling method that produced 119 suitable samples. The analytical method used is multiple linear regression analysis through IBM SPSS Statistics 25 software. Computation of tax avoidance is proxied by computing of Effective Tax Rates (ETR). Good corporate governance is proxied by the size of the board of directors and the audit committee, and executive compensation is proxied by all director compensations. The size of the audit committee is a total of the audit committee in one period. The size of the board of directors is the total of the board committee in one period. This study used ROA and Leverage as a control variable. In this study, it was found that executive compensation and good corporate governance, which was proxied by the Size of the board of directors and the Size of the audit committee shown a positive effect on tax avoidance. Investors who do not want tax avoidance must pay attention to executive compensation and good corporate governance in the company. In contrast, control variables have not significant effect on tax avoidance.

This study aims to determine the effect of independent commissioners on tax avoidance, the effect of the audit committee on tax avoidance, the effect of Corporate Social Responsibility on tax avoidance, and the influence of independent commissioners, audit committees, and Corporate Social Responsibility on tax avoidance simultaneously. This study is a quantitative research. . The population used in this study are manufacturing companies operating in the goods and consumption sub-sector listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The total population of this research is 41 companies. The population was selected using a purposive sampling technique, so that the sample of this study was 21 manufacturing companies operating in the goods and consumption sub-sector listed on the Indonesia Stock Exchange (IDX) in 2016-2020. This type of research data is quantitative. The data used in this study is secondary data, which is sourced from the financial reports of the sample companies. The data collection method uses documentation which refers to the company's financial report. The research data were analyzed by descriptive statistics and panel data analysis. The results of this study prove that independent commissioners and audit committees have no significant effect on tax avoidance. Meanwhile, Corporate Social Responsibility has an effect on tax avoidance in manufacturing companies in the goods and consumption sub-sector listed on the Indonesia Stock Exchange for the 2016-2020 period. Simultaneously, independent commissioners, audit committees, and Corporate Social Responsibility have an effect on tax avoidance in manufacturing companies in the goods and consumption sub-sector listed on the Indonesia Stock Exchange for the 2016-2020 period.

This study examines the effect of good corporate governance, profitability, and liquidity on the tax avoidance of energy sector companies listed on the Indonesia Stock Exchange (IDX) in 2020-2022. This study consists of 5 independent variables (audit committee, independent board of commissioners, institutional ownership, profitability, and liquidity) as well as 1 dependent variable (tax avoidance). Tax avoidance in this study is measured by the Current Effective Tax Rate (CuETR). The objects in this study consist of 21 companies or 63 samples obtained through the Indonesia Stock Exchange (IDX) website and the companies' official websites, using the purposive sampling method, and analyzed by multiple linear regression processed by the IBM SPSS Statistics 25 program software. The study results exhibit that independent board of commissioners, profitability, and liquidity do not affect tax avoidance of energy sector companies, while the audit committee and institutional ownership affect tax avoidance of energy sector companies. Abstrak Penelitian ini bertujuan untuk menguji pengaruh tata kelola perusahaan (good corporate governance), profitabilitas, dan likuiditas terhadap penghindaran pajak (tax avoidance) pada perusahaan sektor energi yang terdaftar di Bursa Efek Indonesia (BEI) tahun 2020-2022. Penelitian ini terdiri dari 5 variabel independen yaitu komite audit, dewan komisaris independen, kepemilikan institusional, profitabilitas, dan likuiditas, serta 1 variabel dependen yaitu penghindaran pajak (tax avoidance). Penghindaran pajak (tax avoidance) pada penelitian ini diukur menggunakan metode Current Effective Tax Rate (CuETR). Objek dalam penelitian ini berjumlah 21 perusahaan atau 63 sampel yang diperoleh melalui website BEI dan website resmi perusahaan dengan menggunakan metode purposive sampling. Metode analisis yang digunakan adalah analisis regresi linier berganda dengan menggunakan program IBM SPSS Statistics 25. Hasil penelitian menunjukkan bahwa dewan komisaris independen, profitabilitas, dan likuiditas tidak berpengaruh signifikan terhadap penghindaran pajak (tax avoidance) pada perusahaan sektor energi. Sedangkan komite audit dan kepemilikan institusional berpengaruh signifikan terhadap penghindaran pajak (tax avoidance) pada perusahaan sektor energi.

This study is aimed at knowing the influence of corporate governance on tax avoidance assessed with an effective tax rate (ETR). The size of the board of commissioners, audit committee, managerial ownership and institutional ownership are used as elements in corporate governance to be tested in research. The sample was determined by purposive sampling which found 32 banking companies listed on the Indonesia Stock Exchange (IDX) in the period 2018-2020. The study used secondary data as database. The research analysis method used is a multiple regression analysis method and is processed using SPSS 25. The results showed that the size of the board of commissioner had a negative effect on tax avoidance. Instituional ownership had a positive effect on tax avoidance. The audit committee and managerial ownership cannot influence tax avoidance

The tax sector is one of the income sources that contributes the highest to funds and can help national development in Indonesia. Corporate bodies or entities are one of the taxpayers who must pay taxes. The government expects corporate entity taxpayers to comply so that the taxes received from corporate entity taxpayers constitute one of the largest contributions to state tax revenues. However, efforts to optimize tax revenues have encountered obstacles, one of which is tax avoidance activities. This research aims to analyze the influence of corporate governance as proxied by company size, audit committee, and leverage on tax avoidance as measured by the effective tax rate (ETR). The sample for this research is 28 banking companies listed on the Indonesia Stock Exchange in 2017-2022. The sample was selected using the purposive sampling method. This research data analysis uses multiple linear regression analysis and hypothesis testing. The research results show that company size and leverage have a significant positive effect on tax avoidance, while the audit committee has a negative but not significant effect on tax avoidance.