The Influence Of Corporate Governance, Profitability And Leverage On Tax Management

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Devi Safitri , Zirman , Ferdy Putra


Tax management is a means of fulfilling tax obligations properly with the lowest amount of tax paid possible to obtain the expected profit and liquidity. Tax management should be administered in a good, efficient, and effective manner for greater profits. In this study, tax management was proxied by the effective tax rate because it describes effective tax planning and tax incentives. This study determined whether corporate governance (institutional ownership variables, audit committee and independent commissioners), profitability, and leverage affect tax management.

This quantitative study regarded secondary data of manufacturing companies listed on the Indonesia Exchange from 2017 to 2019. Purposive sampling technique was employed to select 167 companies as samples. The data were then analyzed using descriptive statistics, panel data regression analysis, while hypotheses of this study were tested using statistical software program Eviews 10.

The hypotheses testing showed that institutional ownership, independent commissioners, profitability and leverage did not have any partial significant influence on tax management. Meanwhile, audit committee was found to positively affect tax management. The determination coefficient of 0.0331 indicated that tax management of manufacturing companies listed on the IDX can be explained institutional ownership, audit committee, independent commissioners, profitability and leverage by 3.31% while the remaining 96.69% is explained by other independent variables that were not examined in this study.

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