The Role of Corporate Governance in Moderating the Effect of Board Gender Diversity and Managerial Ownership on Tax Aggressiveness
DOI:
https://doi.org/10.54099/ijebm.v5i2.1942Keywords:
board gender diversity, managerial ownership, corporate governance, tax aggressivenessAbstract
Purpose – This study examines the effects of board gender diversity, managerial ownership, and corporate governance on tax aggressiveness, and investigates the moderating role of corporate governance in those relationships. It is grounded in Agency Theory, Corporate Governance Theory, Gender Socialization Theory, and Risk Aversion Theory.
Methodology/approach – The population consists of non-financial companies listed on the Indonesia Stock Exchange (IDX) during 2020–2024. Using purposive sampling, 36 companies with 180 firm-year observations were selected. Data were analyzed using Moderated Regression Analysis (MRA) with SPSS.
Findings – Board gender diversity has a positive and significant effect on the Effective Tax Rate (ETR), suggesting that greater gender diversity is associated with lower tax aggressiveness. Managerial ownership has no significant effect on ETR, while corporate governance has a positive and significant effect on ETR, implying that stronger governance enhances tax compliance. However, corporate governance does not significantly moderate the relationship between board gender diversity and tax aggressiveness, nor between managerial ownership and tax aggressiveness.
Novelty/value – The influence of board gender diversity and managerial ownership on tax aggressiveness is primarily determined by firms' internal characteristics rather than by the effectiveness of corporate governance as a moderating mechanism. The study integrates four theoretical perspectives into a single moderation-based empirical model.
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