EFFECT OF CORPORATE GOVERNANCE AND PROFITABILITY ON TAX AVOIDANCE (Empirical Study of Sharia Banking Companies Listed on the Indonesia Stock Exchange 2012-2016)

Abstract

The objectives of this study are as follows: 1) Finding empirical evidence regarding the influence of the independent board of commissioners on tax avoidance; 2) Finding empirical evidence regarding the influence of the audit committee on tax avoidance; 3) Finding empirical evidence regarding the effect of audit quality on tax avoidance; and 4) Finding empirical evidence regarding the effect of profitability on tax avoidance. This type of research used in this study is casual associative research (causal associative research). The population in this study is Islamic commercial banks listing on the Indonesia Stock Exchange for the period 2012-2016. Sample selection with purposive sampling method. The analytical method used to test hypotheses is the multiple regression test. The results showed that: 1) The independent board commissioner variable had no effect on tax avoidance; 2) The audit committee variable has no effect on tax avoidance; 3) The audit quality variable influences tax avoidance; and 4) Profitability variables affect tax avoidance.

Keyword        : Corporate Governance, Profitability, Tax Avoidance

DOI: 10.7176/RJFA/10-18-17

Publication date:September 30^th 2019