THE EFFECT OF GOOD CORPORATE GOVERNANCE AND TAX AVOIDANCE ON THE FIRM VALUE (An Empirical Study at Private Companies Registered in the LQ45 Index of Indonesia Stock Exchange in 2015-2017)

Abstract

This study aims to determine the effect of Good Corporate Governance and Tax Avoidance on the Firm Value (An Empirical Study at Private Companies Registered in the LQ45 Index of Indonesia Stock Exchange in 2015-2017). This research is included in comparative causal research. The population in this study are private companies listed in the Indonesia Stock Exchange LQ45 Index for 2015-2017. The sample selection uses a purposive sampling method. There are 14 companies that meet the criteria for the study sample. So, the data sample in this research were 42. The data analysis techniques using descriptive statistics, classic assumption tests, and regression analysis. The results of this study indicate that (1) Managerial ownership have a positive significant effect on Firm Values, (2) Institutional Ownership have a positive significant effect on Firm Values, (3) Audit Committee does not have a significant effect on Firm Values, (4) Board of Independent Commissioners Proportion does not have a significant effect on Firm Values, (5) Board of Directors Size does not have a significant effect on Firm Values, (6) Tax Avoidance does not have a significant effect on Firm Values, and (7) Corporate Governance and Tax Avoidance simultaneously have positive significant effect on Firm Values.

Keywords: Good Corporate Governance, Tax Avoidance, Firm Value