The Influence of Financial Distress and Independence of Board of Commissioners on Tax Aggressiveness

Abstract

This research aims to examine the influence of financial distress and the independence of boards of commissioners on tax aggressiveness. The study uses 97 manufacture firms listed on the Indonesia Stock Exchange from 2010 to 2013. Using a regression method, the findings show that the financial distress and independence of boards of commissioners have no significant influence on tax aggressiveness. High corporate governance scores do not guarantee a good practice. This research also proves that financial distress has no moderating effect on the association between commissioner independence and tax aggressiveness, since the independence of boards of commissioners does not have a significant effect on tax aggressiveness.

Pengaruh Gender Diversity Dewan, Ukuran Dewan Komisaris, Komisaris Independen, Komite Audit dan Konsentrasi Kepemilikan terhadap Agresivitas Pajak

“…Menurut penelitian Fadli (2016) komisaris independen memiliki pengaruh signifikan negatif terhadap agresivitas pajak. Lain halnya menurut Arismajayanti & Jati (2017) dan Dhamara & Violita (2018), menemukan tidak adanya pengaruh antara komisaris independen dengan agresivitas pajak.…”

“…Menurut penelitian dari Arismajayanti & Jati (2017) dan Dhamara & Violita (2018), komisaris independen tidak memiliki pengaruh signifikan terhadap agresivitas pajak. Pada penelitian Arismajayanti & Jati (2017) penelitian dilakukan juga pada sampel perusahaan sektor manufaktur pada periode 2013-2016 dan penelitian Dhamara & Violita (2018) dilakukan pada sampel perusahaan manufaktur juga * Corresponding author's e-mail: eriswandari@bundamulia.ac.id http://openjournal.unpam.ac.id/index.php/JABI pada periode 2010-2013. Dapat dilihat bahwa dalam periode yang berbeda pun komisaris independen tidak memiliki pengaruh terhadap agresivitas pajak.…”

nalysis of the Effect of Business Strategy and Financial Distress on Tax Avoidance

“…The control variables in this study are as follows: 1. Firm Size Company size is used because larger companies tend to pay higher political costs, including income taxes and often participate in tax planning (Dhamara and Violita, 2018). Firm size is measured using the natural log of total assets in year t.…”

“…Company profitability is the company's ability to generate profits which can cause the amount of tax to change from year to year. Companies that have higher profitability also tend to have higher effective tax rates (Dhamara and Violita, 2018). ROA is measured using net income divided by total assets.…”

“…One of the actions that is often taken is to increase revenue or reduce existing expenses, including tax expenses. According to Dhamara and Violita (2018), to reduce the amount of tax paid, companies tend to reduce their pre-tax income through various tax planning strategies.…”