Board Characteristics and Tax Avoidance: The Mediating Role of Integrated Reporting Quality

Sandicha Dwi ramadhan, Dian Saputra, Abrar Nawas, Firdaus Abdul Rahman

Abstract

This study examines the nexus between female directors, independent commissioners, board size, political connections, and Corporate Tax Avoidance (CTA) within the non-cyclical consumer goods sector of the Indonesian Stock Exchange (IDX) from 2019 to 2022. The research also tests the mediating influence of Integrated Reporting Quality (IR), addressing the significance of Integrated Reporting in Indonesia. Using SmartPLS 3 and PLS-SEM, the findings reveal that female directors are negatively associated with Tax Avoidance, while board size has a positive effect, and independent commissioners and political connections show insignificant impacts. The mediating role of IR Quality indicates that improved reporting quality reduces tax avoidance in relation to board characteristics and political connections. The study underscores the importance of IR quality in enhancing corporate transparency and reducing fraudulent activities, advocating for the adoption of Integrated Reporting frameworks by both government bodies and companies.

Full text article

Generated from XML file

References

Read More

Authors

Sandicha Dwi ramadhan
sandichadr542@gmail.com (Primary Contact)
Dian Saputra
Abrar Nawas
Firdaus Abdul Rahman
Author Biographies

Dian Saputra, Islamic University of Riau

Accounting Study Program, Faculty of Economics and Business

Abrar Nawas, Islamic University of Riau

Accounting Study Program, Faculty of Economics and Business

Firdaus Abdul Rahman, Islamic University of Riau

Accounting Study Program, Faculty of Economics and Business

Dwi ramadhan, S. ., Saputra, D., Nawas, A., & Abdul Rahman, F. (2024). Board Characteristics and Tax Avoidance: The Mediating Role of Integrated Reporting Quality . Agregat: Jurnal Ekonomi Dan Bisnis, 7(2), 174–197. https://doi.org/10.22236/agregat_vol7.i2/16394
Copyright and license info is not available

Article Details