The Effect Of Corporate Social Responsibility And Good Corporate Governance On Pharmaceutical Company Tax Avoidation In Indonesia

Abstract

Istianingsih

This study aims to examine the role of Corporate Social Responsibility (CSR) disclosure towards tax avoidance of pharmaceutical companies in Indonesia. In addition, this study also examines the impact of implementing Good Corporate Governance practices as measured by the Audit Committee and audit quality on Tax Avoidance. Tax Avoidance in this study was measured by Cash Effective Tax Rate. The population of this research is pharmaceutical companies that are listed on the Indonesia Stock Exchange in 2015-2019. To determine the research sample used purposive sampling method. The number of final samples used in this study is the method of analysis in this study is a multiple linear regression test. This study failed to prove that CSR and GCG disclosures as measured by the Audit Committee did not have a significant impact on tax avoidance in the pharmaceutical sector. However, the findings of this research indicate that GCG as measured by Audit Quality has a significant effect on Tax Avoidance.