Audit Quality and Company Size on Tax Avoidance:  The Role of Independent Commissioners

Raja Adri Satriawan Surya; Arumega Zarefar; Nanda Fito Mela; Nurfitriani Nurfitriani; M Hamid; R Multi Konvokesen Adiman

doi:10.37859/jae.v16i1.11390

Authors

Raja Adri Satriawan Surya Universitas Riau
Arumega Zarefar Universitas Riau
Nanda Fito Mela Universitas Riau
Nurfitriani Nurfitriani Universitas Riau
M Hamid Universitas Riau
R Multi Konvokesen Adiman Universitas Riau

DOI:

https://doi.org/10.37859/jae.v16i1.11390

Keywords: Audit quality, Company size, Tax avoidance, independent, commissioners

Abstract

This study examines the effect of audit quality and firm size on tax avoidance, with independent commissioners as a moderating variable. Using 595 firm-year observations from 94 manufacturing companies listed on the Indonesia Stock Exchange during 2016–2023, this study applies pooled panel regression with year fixed effects and firm-level clustered robust standard errors. The results show that audit quality is negatively associated with the effective tax rate, indicating higher tax avoidance. Firm size has no significant direct effect. Independent commissioners significantly strengthen the monitoring role of audit quality, but do not convert firm size into stronger tax compliance. These findings suggest that governance mechanisms influence tax avoidance differently depending on whether they operate through external audit quality or firm complexity.

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