Does Managerial Ability and Corporate Governance Mitigate Tax Avoidance Activities when Environmental Uncertainty is Considered?

摘要

This study aims to examine the effect of environmental uncertainty on tax avoidance with a managerial ability and corporate governance as a moderating role in it. The sample used in this study is a company listed on the Indonesia Stock Exchange (IDX) period 2014-2016. Abnormal Book-Tax Difference (ABTD) considered as an appropriate measurement of tax avoidance in this study because considering of misleading created from management discretion as another cause of tax avoidance in addition to the differences in tax standard with accounting standard. The results of the study showed significant positive evidence of the effect of environmental uncertainty on tax avoidance. Managerial ability is found to play a role in strengthening the influence of environmental uncertainty on tax avoidance. For corporate governance, there is evidence of its role to mitigate the impact of environmental uncertainty on tax avoidance.