The Influence of CEO Duality on Aggressive Tax Avoidance with Corporate Governance as Variable Moderation

Abstract

This research aims to empirically test the influence of dual positions (CEO Duality) as a board of directors (Chief Executive Officer) and a board of commissioners (Chairman of Board) in a company on tax avoidance, as well as the influence of good corporate governance on the relationship between CEO Duality and tax avoidance in Indonesia and Malaysia. The research sample consists of manufacturing companies listed on the Indonesia and Malaysia Stock Exchanges for the period 2017-2021. This research complements agency theory studies which apply the existence of agent and principle functions in one individual. This research also complements the use of tax avoidance measurement methods as a reference in determining the practice of aggressiveness of tax avoidance. The results of this research found that dual positions (CEO Duality) as a board of directors (Chief Executive Officer) and also as a board of commissioners (Chairman of Board) in a company have the potential to have an impact on increasing tax avoidance strategies carried out by the company. This research also found that the implementation of good corporate governance was able to minimize the potential use of tax avoidance strategies due to the impact of CEO Duality on the company's organizational structure. This research has implications for the importance of more specific anti-tax avoidance policies in order to reduce state losses due to tax avoidance practices by implementing strict supervision of companies that have dual positions (CEO Duality) and also policies for implementing good corporate governance that can minimize the practice. tax avoidance, the existence of a policy of implementing good corporate governance, it is hoped that there will be renewal of corporate governance in implementing CEO duality in Indonesia and Malaysia.