Good Corporate Governance Effectiveness Mechanism, Special Relationship Transactions, and Leverage on Tax Aggressiveness
Downloads
This study examines how effective good corporate governance, control of related party transactions, and leverage are in reducing tax aggressiveness. The research methodology involves cross-sectional and time-series analysis of manufacturing companies listed on the IDX from 2017-2021. Through purposive sampling, 200 observational samples were collected and tested using E-views 12, which produced a random effect model as the best regression model. The findings indicate that good corporate governance with institutional ownership proxies, audit committee activities, and the proportion of independent commissioners did not significantly reduce tax aggressiveness. Leverage with debt-equity ratio proxies also did not demonstrate a significant effect. However, related party transactions had a significant effect in increasing management opportunities to carry out tax aggressiveness. If good corporate governance implementation is not maximized and there is unfairness in related party transactions, it may indicate aggressive tax avoidance.
Copyright (c) 2023 Haris Prasetyo Hadi Santoso, Wiwik Utami
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
