Title: Females on the board of directors and corporate tax aggressiveness in Indonesia: an empirical analysis

Authors: Nurul Herawati; Rahmawati Rahmawati; Dian Indudewi; Marita Kusuma Wardani; Barkah Susanto

Addresses: Doctoral Program of Economics Science, University of Sebelas Maret, Indonesia; Faculty of Economics and Business, University of Trunojoyo Madura, Indonesia ' Faculty of Economics and Business, University of Sebelas Maret, Indonesia ' Doctoral Program of Economics Science, University of Sebelas Maret, Indonesia; Faculty of Economic, University of Semarang, Indonesia ' Doctoral Program of Economics Science, University of Sebelas Maret, Indonesia; Faculty of Islamic Economics and Business, State Institute for Islamic Studies (IAIN) Surakarta, Indonesia ' Doctoral Program of Economics Science, University of Sebelas Maret, Indonesia; Faculty of Economics and Business, University of Muhammadiyah Magelang, Indonesia

Abstract: This study examines the impact of female's presence on the board of directors on corporate tax aggressiveness. The sample is manufacturing companies and trade, service, and investment companies listed on the Indonesia Stock Exchange (ISE) over the 2013-2015 periods. Listed companies on the ISE follow a two-tier board structure consisting of the board of directors and the board of commissioners. This study focuses on the presence of female on the board of directors as the management functions of the company. Based on a sample of 360 company-year observations, our multiple regression results show that a negative and statistically significant association between the presence of female on the board of directors and tax aggressiveness. This result supports previous empirical evidence conducted in Western countries. This finding suggests that the presence of female directors on the board of directors is effective in their tax reporting compliance.

Keywords: gender; female; board of directors; executive board; managerial board; two-tier system; corporate governance; corporate tax aggressiveness; effective tax rates; ETR; tax compliance; emerging market.

DOI: 10.1504/IJGFI.2021.116831

International Journal of Governance and Financial Intermediation, 2021 Vol.1 No.2, pp.105 - 119

Received: 11 Sep 2017
Accepted: 25 Mar 2018
Published online: 04 Aug 2021 *

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