The Influence of Good Corporate Governance, Capital Intensity Ratio, and Profitability to Effective Tax Rate (Empirical Study on Manufacturing Companies Basic Industry Sectors and Chemicals Listed In Indonesia Stock Exchange Year 2011-2015)

Abstract

This study aims to examine empirically the influence of good corporate governance
(independent commissioner, audit committee, board of directors, & audit quality),
capital intensity ratio, and profitability to effective tax rate. The population of this
research was manufacturing companies basic industry sectors and chemicals listed
on the Indonesia Stock Exchange in the period 2011-2015. Sampling was done by
using purposive sampling method. There were 8 companies that fulfilled the
criteria of sampling. This study used multiple linear regression analysis. The results
of this study showed that the variable of independent commissioner and board of
directors significant influence to the effective tax rate. meanwhile variable audit
committee, audit quality, and capital intensity ratio, and profitability did not
significant influence to the effective tax rate. Based on the determination
coefficient test (R2) obtained the coefficient of determination with adjusted R2 of
0,300. These result show that 30,0% of variables effective tax rate can be explained
by the independent commissioner, audit committee, board of directors, audit
quality, capital intensity ratio, and profitability. While, the rest of 70,0% is
explained by other factors outside the model in this research.
Keywords: effective tax rate, independent commissioner, audit committee, board of directors,
audit quality, capital intensity ratio, and profitability