Does Corporate Governance Affect Tax Planning? A Case Study of a Manufacturing Company

Many studies pertain to the role of excellent corporate governance characteristics. Some of these characteristics are the presence of an independent commissioner (IDC), institutional ownership (IO) and leverage (LEV) at an effective tax rate. Therefore, the objective of this research is to examine the effect of the characteristics of corporate governance (CG) according to the factors mentioned. This working paper constitutes empirical research with data collection utilising the sampling method. Secondary data were obtained from privatised governmental financial statement listed on the Indonesia Stock Exchange (IDX) from 2011 to 2014. After multiple regression analyses, the results of this study showed that the proportion of IDCs had no effect on the effective tax rate (ETR). Meanwhile, institutional investors had no impact on effective tax rates, and leverage has a positive effect on the effective tax rate. Keywords: Corporate Governance, Effective Tax Rate, Tax Planning

The Influence of Corporate Social Responsibility Disclosure, Acceptance of Going Concern Audit Opinion and Audit Quality on Abnormal Returns

This research aims to examine the influence of CSR disclosure, acceptance of going concern audit opinion and audit quality on market reactions as measured by abnormal returns. The information content in Corporate Social Responsibility (CSR) disclosure, receipt of going concern audit opinion and audit quality are signals from the company that are predicted to cause a market reaction. The sample was obtained using a purposive sampling method and 20 mining sector companies listed on the Indonesia Stock Exchange in 2010-2013 were selected. The analytical method used in this research is multiple regression analysis. The results of hypothesis testing show that CSR disclosure, acceptance of going concern audit opinion, audit quality, company size and asset growth rate simultaneously influence abnormal returns. Meanwhile, partial CSR disclosure, acceptance of going concern audit opinion and audit quality do not affect abnormal returns. This implies that financial information is still a reference for investors in making investment decisions. They do not pay much attention to CSR disclosure information, going concern audit opinion and audit quality as a tool for predicting the future. This also shows that the characteristics of investors in the Indonesian capital market are more long-term oriented