KARAKTERISTIK EKSEKUTIF TERHADAP TAX AVOIDANCE DENGAN LEVERAGE SEBAGAI VARIABEL INTERVENING

Abstract

This research aimed to examine the influence of the executive characteristic on corporate tax avoidance. Risk
takers executive tended to be more courageous and aggressive in taking decision related to the tax. On the
contrary, the risk averse executive tended to be carefully (Low, 2006). This research used leverage as intervening
variable. Therefore, there was an assumption that the executive characteristic determined the corporate
leverage which then influenced their tax avoidance in the company. Manufacturing companies which were
listed in Indonesia Stock Exchange during the period 2010-2012 were used as samples. This research used
purposive sampling method to select the sample with the criteria as follows: they were listed in Indonesia Stock
Exchange during the period of 2010-2012, they made a profit during the period of 2010-2012, and they used
rupiah as reporting currency. Data was processed using path analysis and the result showed that the executive
characteristic had an impact on corporate tax avoidance with leverage as the intervening variable. The result
of this research could be used for the investors to assess the corporate tax avoidance before they made a decision,
and also for the policy makers to detect the corporate tax avoidance.