PENGARUH EFEKTIFITAS DEWAN KOMESARIS DAN KOMITE AUDIT TERHADAP TAX AGGRESSIVENESS

Abstract

The existence of governance structure such as board of
commissioners and audit committee implies a better monitoring function
on the financial reporting process that represent manager actions.
Nevertheless, the quality of the monitoring function depends on how
effective the board and the audit committee perform their duties. This
study examines how the effectiveness of the board of commissioners and
audit committee in a two tierboard structure influences the tax
aggressiveness.This study develops a score for board and audit committee
effectiveness by using a checklist which captures how the independence,
activity, size, and competence characteristics are reflected in the board of
commissioners and audit committe.Hypothesis testing is carried out by
using a multiple regression model of 105 observations (firm-year) with
the sample taken from manufacture companies listed on the Indonesian
Stock Exchange during t.Results of this study provide robust evidence
that a more effective board of commissioners and audit committee will
decrease tax aggressiveness.