The Effect Of Thin Capitalization, Executive Characters And Good Corporate Governance On Tax Avoidance

Abdul Mahmud


The final objective in this study is to determine the effect of Thin Capitalization, Executive Character, Good Good Corporate Governance on Tax Avoidance. The Good Corporate Governance mechanism used is the proportion of the Independent Commissioner. The population in this study were all manufacturing companies listed on the IDX from 2012 to 2016. While the sample of this study was determined by purposive sampling method so that 200 samples were obtained from 40 companies with 5 years. The type of data used is secondary data obtained from company website. The analysis method used is simple regression analysis and multiple regression. The results of simple regression research indicate that thin capitalization has a significant negative effect on tax avoidance, the executive character proxied by using corporate risk has a significant negative effect on tax avoidance, while the good corporate governance mechanism proxied by using the board of commissioners structure shows that it has a significant positive effect. against tax avoidance. Meanwhile, the multiple regression simultaneously shows that the three independent variables have a significant influence because the results of Fcount is greater than Ftable (0.000 <0.05).

Keywords:     Thin Capitalization, Executive Character, Good Corporate Governance, Tax Avoidance

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