The Effect of Accounting Conservatism, Capital Intensity on Tax Avoidance with Independent Commissioners as Moderating Variables
Lina Herlina
Faculty of Business and Economy, Universitas Mercu Buana, Jakarta, Indonesia.
Triyani Budyastuti *
Faculty of Business and Economy, Universitas Mercu Buana, Jakarta, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This research aims to provide light on how accounting conservatism and capital intensity influence tax avoidance, and how the existence of independent commissioners acts as a moderators component in this connection. This study employs a causal quantitative methodology. This research focuses on 21 energy-related firms trading on the Indonesian Stock Exchange between 2017 and 2021. The sample size is 105, and it was determined using a basic random sampling technique. Linear regression analysis and moderated regression analysis were employed for the data analysis (MRA). This research shows that conservative accounting practices and high levels of capital intensity help taxpayers avoid paying their fair share of taxes. Moreover, independent commissioners can mitigate the impact of accounting conservatism on tax avoidance, but cannot do so for the impact of capital intensity.
Keywords: Accounting conservatism, capital intensity, independent commissioners, tax avoidance