Abstract:
This research continues the prior research which aims to examining the
influence corporate governance mechanism through board of commissioners and
institutional ownership toward tax avoidance moderated by managerial incentive
in form of bonus. The method of the study is quantitative study which used
secondary data that the collected data is all companies of non-finance industry
from period 2016-2018 that listed in IDX, which amounted 299 companies. The
theory that corresponds with this study is agency theory and bonus plan
hypothesis. The result of the study are there is a positive influence between board
of commissioners toward tax avoidance, there is no influence of institutional
ownership toward tax avoidance, the existence of bonus negatively influence the
relationship between board of commissioners toward tax avoidance, and there is
no influence of bonus as the moderator toward the relationship between
institutional ownership and tax avoidance. The limitation during this study is the
IDX did not provide the annual report for 2014 and 2015, and the result of the
coefficient of determination is too small. So, for future researcher can use this
study as the reference, and add audit committee to examine the influence of
managerial incentive toward the relationship between audit committee and tax
avoidance with longer time period.
