THE EFFECT OF CORPORATE GOVERNANCE ON TAX AVOIDANCE (On the Empirical Study of Manufacturing Industry Listed in Indonesia Stock Exchange Period 2011-2015)

Abstract

The purpose of the study was to investigate the effect of corporate governance on tax avoidance. The secondary data for the study were collected from manufacturing companies that listed in Indonesian Stock Exchange in the period of 2011-2015 by using purposive sampling technique. In order to test hypotheses, the study performed multiple regression analysis. The results indicated that audit quality had a negative and significant affect on tax avoidance, while audit committee, proportion of independent commissioner, and institusional ownership have no effect on tax avoidance in Indonesian manufacturing firms.

Keyword: Tax Avoidance, audit committee, audit quality, proportion of independent commissioner, and institusional ownership