PENGARUH CORPORATE GOVERNANCE TERHADAP TAX AVOIDANCE

Abstract

This study aims to examine the effect of corporate governance on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. The corporate governance variables analyzed in this study include board independence, board gender diversity, board size, audit quality, and CEO narcissism, as well as financial characteristic variables, namely profitability and leverage. Tax avoidance is measured using the effective tax rate (ETR). This study employs a quantitative approach with a causal research design. The research sample was selected using a purposive sampling method, and secondary data were obtained from companies’ annual reports and financial statements. The data were analyzed using descriptive statistics, data quality tests, classical assumption tests, and hypothesis testing through multiple linear regression analysis. The results indicate that board independence, board gender diversity, board size, and audit quality do not have a significant effect on tax avoidance. Furthermore, CEO narcissism and leverage have a positive and significant effect on tax avoidance. Meanwhile, profitability has a negative and significant effect on tax avoidance.