The Influence of Good Corporate Governance and Profitability on Tax Aggressiveness
Abstract
The goal of this research is to see how effective corporate governance, as measured by independent commissioners and audit committees, affects tax aggressiveness, followed by profitability, as measured by return on assets. The effective tax rate is used to assess tax aggression, which is the dependent variable in this study. A quantitative technique was used to develop this study. The number of samples used in this study is 102 data from 17 basic and chemical industrial sector businesses that were partially or simultaneously listed on the Indonesia Stock Exchange between 2015 and 2020. Purposive sampling was utilized as the sample methodology. Eviews version 9 was used to process the data collected from secondary sources. Panel data regression was utilized to analyze the data in this study. According to the results of the test, the independent commissioner has a considerable negative influence on tax aggressiveness, while the audit committee has no effect, and profitability has a big positive effect on tax aggressiveness. However, tax aggressiveness is influenced by independent commissioners, audit committees, and profitability all at the same time.
Keywords: Tax Aggressiveness; Independent Commissioner; Audit Committee; and Profitability
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