Do Independent Commissioners, Fixed Asset Intensity, And Institutional Ownership Have Impact of Tax Evasion?
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 12
Abstract
Government funding heavily relies on state revenue generated through taxation, and it is crucial for the government to enhance tax revenue. However, despite the government's efforts to maximize tax income, the desired tax revenue goal remains unmet due to instances of tax evasion. This research evaluates tax evasion through the assessment of the effective tax rate (ETR). This study investigates the impact of independent commissioners, fixed asset intensity, and institutional ownership on the practice of tax evasion. The research aims to assess the significance of these factors, which are believed to be associated with a company's motivation to circumvent tax obligations. The study sample comprises 24 observations of manufacturing companies in the consumer subsector, all of which were listed on the Indonesia Stock Exchange between 2017 and 2021. Inclusion criteria for the sample encompass the availability of accessible annual reports, profitability without losses, and a positive Effective Tax Rate (ETR) for the companies. Multiple linear regression analysis was employed to test the hypotheses. The findings of this investigation reveal that independent commissioners exert a negative influence on tax evasion, while fixed asset intensity demonstrates a positive impact on tax evasion. However, institutional ownership does not appear to affect tax evasion.
Authors and Affiliations
Diah Ayu Sekar Astuti, Sutrisno T, Syaiful Iqbal
Keywords
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- EP ID EP729633
- DOI 10.47191/jefms/v6-i12-03
- Views 60
- Downloads 0
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