EFFECT OF PROFITABILITY, LEVERAGE AND CHARACTERISTICS OF CORPORATE GOVERNANCE IN TAX AVOIDANCE MINING COMPANY LISTED IN BEI

Abstrak

This study aimed to examine the effect of profitability, leverage, and corporate governance
characteristics against tax avoidance on mining companies listed on the Indonesia Stock
Exchange in 2013-2015. The independent variables in this study are Return on Assets
(ROA), Dept to Equity Ratio (DER), institutional ownership, independent board and audit
committee. While the dependent variable in this study is tax avoidance by using Cash
Effective Tax Rate (CETR). The sampling technique is done by using purposive sampling
method and data analysis tool used is multiple linear analysis. The sample used in this study
is that mining companies listed on the Indonesia Stock Exchange in the period 2013-2015,
with a total of 11 companies per period. The results of this study concluded that the variable
Return On Assets and Dept. To Equity Ratio effect on tax avoidance in mining companies,
whereas the institutional ownership variable, independent board and audit committee does
not affect the tax avoidance in mining companies.
Keywords: Profitability, leverage, corporate governance, tax avoidance