THE EFFECT OF GENDER DIVERSITY AND TUNNELING INCENTIVE ON TAX AVOIDANCE

Amalia Mayestika Putri, Wiwin Juliyanti

Abstract


This study aims to analyze the effect of gender diversity and tunneling incentive on tax avoidance in infrastructure sector companies listed on the Indonesia Stock Exchange. The phenomenon of tax avoidance in this sector is noteworthy due to its high transaction value and the potential for opportunistic practices by controlling shareholders. The research employed a quantitative approach with purposive sampling of infrastructure companies during 2019–2023. Data were analyzed using multiple linear regression with the assistance of SPSS software. The results show that gender diversity has a negative effect on tax avoidance, while tunneling incentive has a positive effect on tax avoidance. In conclusion, gender diversity on the board serves as a monitoring mechanism, whereas tunneling incentives tend to drive tax avoidance practices. Future research is suggested to include moderating variables such as political connection to enrich the analysis. These findings are important for regulators and companies to reduce tax avoidance through improved corporate governance.

Keywords: Gender Diversity, Tunneling Incentive, Tax Avoidance

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References


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