Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)

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Governance Structure, Tax Avoidance, and Firm Value

Authors
Yenni Mangoting, Cecilia Gunadi, Feren Priscilia Dinata Tobing, Olivia Ariyanto Putri
Corresponding Author
Cecilia Gunadi
Available Online 14 December 2020.
DOI
10.2991/aebmr.k.201212.056How to use a DOI?
Keywords
Agency theory, Audit committee, Corporate governance, Board diversity, Board size, Firm value, Independent board of commissioners, Signalling theory, Tax avoidance
Abstract

This study aims to determine the effect of good corporate governance with board size indicators, board diversity, independent commissioners, and audit committee on the firm value. Tax avoidance was also tested as mediation in Good Corporate Governance and firm value relationship. We used 132 publicly listed Indonesian manufacturing firms that are listed in 2014-2018 as samples. This study used multiple regression analysis and path analysis by a Sobel test. The study results indicated that the size of independent commissioners played a significant role in supervising and providing consultation that had an impact on increasing firm value and tax avoidance. Meanwhile, other Good Corporate Governance elements, including board size, board diversity, and audit committee, did not affect the firm value. Similarly, the role of tax avoidance as mediation couldn’t be proven in this study. This indicated that the regulators need to evaluate the mechanism to implement Good Corporate Governance in public firms and, if deemed necessary, provide additional Good Corporate Governance mechanism which principles can be applied entirely to prevent an agency conflict.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2020
ISBN
978-94-6239-297-7
ISSN
2352-5428
DOI
10.2991/aebmr.k.201212.056How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Yenni Mangoting
AU  - Cecilia Gunadi
AU  - Feren Priscilia Dinata Tobing
AU  - Olivia Ariyanto Putri
PY  - 2020
DA  - 2020/12/14
TI  - Governance Structure, Tax Avoidance, and Firm Value
BT  - Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)
PB  - Atlantis Press
SP  - 397
EP  - 407
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201212.056
DO  - 10.2991/aebmr.k.201212.056
ID  - Mangoting2020
ER  -