Executives characters, Gender and Tax Avoidance: A Study on manufacturing companies in Indonesia
STIE Indonesia Banking School
Research on corporate tax avoidance are interesting topic to be discussed. This study aims to provide empirical evidence about the effects of executives character and gender to corporate tax avoidance. Gender in this study was measured through a dummy variable, executives character is measured by the company risk, while tax avoidance is measured by the cash effective tax rate. Data analyzed consisted of 20 manufacturing companies from 2009-2014, and this research used 120 observations. The results showed that the executive character negatively affect tax avoidance. While male executives in this study proved to be more courageous in taking tax avoidance risk, when compared with women executives. Although executives character at the companies are basically a risk taker, with these law, perhaps in the case of tax avoidance, they tend to be more cautious. This may be explained that reputation is damaged due to violation of tax rules is not outweighed by the benefits form tax avoidance.
Topic: Financial Management and Accounting