Authors:
Linta Septiya
and
Santi Novita
Affiliation:
Airlangga University, Indonesia
Keyword(s):
Family Ownership,
Government Ownership,
Foreign Ownership,
Independent Commissioners,
Audit Committees,
Audit Quality,
Tax Avoidance
Abstract:
This study aims to provide empirical evidence regarding the impact of family ownership, government ownership, foreign ownership, independent commissioners, audit committees and audit quality on tax avoidance. Tax avoidance is proxied by the Cash Effective Tax Rate (CETR), which is the ratio of cash tax paid to pre-tax income. The sample includes 568 non-financial firms listed on the Indonesia Stock Exchange between 2013 and 2016 and is determined by the purposive sampling method. The impacts of family ownership, government ownership, foreign ownership, independent commissioners, audit committees and audit quality on tax avoidance were analyzed using multiple linear regression analysis with the help of SPSS 21 software. Based on the results, it can be concluded that independent commissioners, audit committees and audit quality have no significant impact on tax avoidance; meanwhile, family ownership, government ownership, and foreign ownership have a significant impact on tax avoidance
. This indicates that higher ownership of family, government, and foreign company will reduce tax avoidance practices.
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