Profitability, capital intensity and tax avoidance in Indonesia: The effect board of commissioners' competencies

Yoseph Togu Marsahala (), Dianwicaksih Arieftiara () and Noegrahini Lastiningsih ()

Journal of Contemporary Accounting, 2020, vol. 2, issue 3, 129-140

Abstract: This study aims to research the impact of profitability and capital intensity on tax avoidance moderating with the competence of the board of commissioners. Focus of the study is manufacturing companies listed on Indonesia Stock Exchange for 2016-2018 period. The sampling technique was purposive sampling procedure, and hypotheses testing with regression panel data analysis using STATA version 13 application. The results indicate that profitability has a significant effect on tax avoidance, however, capital intensity has no significant effect on tax avoidance. This study documented that the competence of the board of commissioners weaken the effect of profitability on tax avoidance, however, the study failed to document the moderating role of the competence of commissioners on the effect of capital intensity on tax avoidance. This study contributes on enhance the empirical evidence that if companies have a competent board of commissioners, it can monitor managers' tax avoidance activities, thus managers will decrease the intensity of tax avoidance based on company profitability.

Keywords: Profitability; capital intensity; competence of commissioner's board; tax avoidance (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.uii.ac.id/JCA/article/view/17617/11127 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uii:jcauii:v:2:y:2020:i:3:p:129-140:id:17617

Access Statistics for this article

Journal of Contemporary Accounting is currently edited by Ana Yuliani

More articles in Journal of Contemporary Accounting from Master in Accounting Program, Faculty of Business & Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia
Bibliographic data for series maintained by Ana Yuliani ().