Tax Avoidance Moderate: Board of Commissioners, Profitability, Leverage, Firm Size and Audit Report Lag

Abstract

This study aims to examine the variables that affect audit report lag, namely the board of commissioners, profitability, leverage, and firm size. This study also examines the role of tax avoidance in moderating the relationship between these variables. The population in this study are health sector companies listed on the Indonesia Stock Exchange in 2019-2021 with a total of 23 companies. The results of selecting the sample using the purposive sampling method, the selected company data amounted to 11, so that the total number of observations in this study was 33. The data analysis method used Partial Least Square (PLS). The results of the study show that the variables of profitability, leverage, and firm size affect audit report lag, while the board of commissioners does not have a negative effect on audit report lag. Tax avoidance is not proven to moderate the relationship between board of commissioners, profitability, leverage, and firm size on audit report lag. The implication of this research is to strengthen the agency theory that is used and can provide input regarding regulation and supervision to the government as well as to health sector companies related to performance. The results of this study can be used as material for consideration and input for strategic policy makers in determining policies to improve the quality of financial reporting information.

Keywords: Audit Report Lag, Board of Commissioners, Profitability, Leverage, Company Size, Tax Avoidance

DOI: 10.7176/RJFA/14-13-08

Publication date:July 31^st 2023