THE INFLUENCE OF CORPORATE GOVERNANCE MECHANISM TOWARD TAX AVOIDANCE MODERATED BY MANAGERIAL INCENTIVE

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.