Abstract:
The purpose of this research is to analyze the impact of tax avoidance and board
diversity on corporate performance in the perspective of corporate governance.
The research was conducted for non-financial firms listed on the Indonesia Stock
Exchange period 2010 to 2013. In this research, tax avoidance is measured by
Cash Effective Tax Rate (CETR), board diversity is measured by 3 proxies, i.e. age,
educational background and tenure of the board of directors, and the
performance of the company is measured by the Tobins Q ratio. Analysis of panel
data with fixed effects model was used to analyze the influence of independent
variables and the dependent variable. The results of this study indicate that the
tax avoidance negatively affects the corporate performance and board diversity
not affects the corporate performance.
