Managerial and Financial Capabilities Become Determining Factors of Tax Avoidance Practice in Indonesia

Author:

Rizka Hasanah Alamanda,Widiastuti Ni Putu Eka

Abstract

Differences in interests related to taxation between the government and companies are still a current issue. The purpose of this study is to examine the impact of managerial and financial competencies on tax avoidance in Indonesian manufacturing companies. 149 financial statements of companies listed on the Indonesia Stock Exchange were used to compile the data. Panel data regression with a random-effects model was used to test and analyze the data. The findings revealed that financial challenges and managerial ability had a detrimental impact on tax avoidance, but there was no influence between the audit committee on tax avoidance. As for the control variable, there is a positive influence between profitability on tax avoidance, and there is no influence between leverage on tax avoidance.

Publisher

Center for Strategic Studies in Business and Finance SSBFNET

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