Research Article
Corporate Governance, Earnings Management and Tax Avoidance: Indonesia Evidence
@INPROCEEDINGS{10.4108/eai.6-12-2018.2286317, author={Ibrahim Husein Lubis and Desi Adhariani}, title={Corporate Governance, Earnings Management and Tax Avoidance: Indonesia Evidence}, proceedings={Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia}, publisher={EAI}, proceedings_a={SU-AFBE}, year={2019}, month={8}, keywords={corporate governance earnings management tax avoidance institutional ownership independent commissioners audit committee}, doi={10.4108/eai.6-12-2018.2286317} }- Ibrahim Husein Lubis
Desi Adhariani
Year: 2019
Corporate Governance, Earnings Management and Tax Avoidance: Indonesia Evidence
SU-AFBE
EAI
DOI: 10.4108/eai.6-12-2018.2286317
Abstract
This study aims to investigate the empirical evidence on the impact of corporate governance on earnings management and tax evasion in public companies. The scope of this study is companies listed on the Indonesia Stock Exchange except those in financial, real estate, and telecommunication industries. Panel regression method was employed to run the data on samples for five-year-period (2012-2016). The results show that several corporate governance mechanisms play an important role in detecting earnings management, namely the institutional ownership, the percentage of independent commissioners, and percentage of audit committee members with finance/accounting background. For tax evasion, only the size of the board of commissioners that plays a role in detecting the practice. The results have practical implication on improving several corporate governance mechanisms to effectively tackle unethical practices such as earnings management and tax avoidance.