The Effect of Firm Performance and Audit Committee on Tax Avoidance

Hatah Diez Pamangin, Vita Elisa Fitriana


This research aims to test empirically the effect of firm performance and audit committees on tax avoidance. This analysis uses independent variables, namely firm performance and audit committee. And the dependent variable is tax avoidance. The sample of this research is a list of companies indexed by Compass 100 which are listed on the Indonesian Stock Exchange with a research period of 2019-2021. The sample was taken by purposive sampling method. Data collection was carried out using the secondary data method from the annual reports of the sampled companies. The statistical method uses Multiple Linear Regression Analysis. The results of this study indicate that firm performance significantly negatively affects tax avoidance, but the audit committee does not affect tax avoidance. Tax avoidance is influenced by financial measurements and whereas non-financial measurements do not affect tax avoidance. Furthermore, it is possible to say that financial measurement is the basis for companies to avoid taxes.

Keywords: Tax avoidance, Firm Performance, Audit Committee

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