Academic Audit Committee Directors, Tax Governance, and Corporate Tax Avoidance

Sintia Nurlitasari; Umatun Markhumah

doi:10.69725/jipi.v1i4.325

Authors

Sintia Nurlitasari a. Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Indonesia, 57761
Umatun Markhumah b. Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Indonesia, 57761

DOI:

https://doi.org/10.69725/jipi.v1i4.325

Keywords:

Academic directors, Audit committee, Tax governance, Tax avoidance, Corporate Governance

Abstract

Purpose – This paper investigates the degree to which academic members of audit committees influence corporate tax avoidance via internal governance mechanisms.

Design/methodology/approach – Structural equation modeling is applied in testing direct, mediating and antecedent governance relationships with findings reported.

Findings – The results indicate that academic financial experts serving on audit committees are related to lower levels of corporate tax avoidance. This relationship is basically indirect and works through a higher quality of tax governance, consisting in better law, high control risk oversight and more transparency. The findings suggests that academic directors primarily act as effective monitors rather than advisers in the context of tax planning. Stronger tax governance, for its part, limits managerial discretion in tax decisions and discourages aggressive-taxing behavior. Moreover, the analysis also implies that governance-related mechanisms largely contribute to determine tax policies, especially in cases where inside monitoring is essential.

Originality/value – We contribute to the tax avoidance literature by incorporating tax governance quality as an intervening factor between audit committee members with accounting expertise and tax outcomes. It contributes to the existing literature on board heterogeneity by emphasizing the unique contribution of academic directors in governance-sensitive areas such as taxation.

Research Implications – The findings highlight the significance of expertisebased AC composition and have implications for regulating corporate tax behaviours towards more responsible and transparent governance.

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Author Biographies

Sintia Nurlitasari, a. Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Indonesia, 57761

Sintia Nurlitasari is an academic in the Department of Accounting, Faculty of Communication and Business at Universitas Muhammadiyah Karanganyar, Indonesia. Her research interests include financial accounting, taxation, corporate governance, and accounting information systems. She has a particular interest in examining corporate tax behavior, governance mechanisms, and the role of transparency in improving financial accountability. Her research adopts quantitative and governance-oriented approaches, with an emphasis on empirical analysis of firm-level data. Through her work, she aims to contribute to the advancement of accountable financial reporting practices and informed policy discussions in accounting and taxation.
Umatun Markhumah, b. Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Indonesia, 57761

Umatun Markhumah, S.E., S.H., M.Ak., CTC. is a lecturer and researcher in accounting and business studies with interdisciplinary academic qualifications in economics, law, and accounting. She is affiliated with Universitas Sebelas Maret and Universitas Muhammadiyah Karanganyar, Indonesia. Her research interests include taxation, financial accounting, corporate governance, and public finance, with a particular focus on tax compliance, tax justice, and regulatory effectiveness. Using quantitative and empirical research methods, her work contributes to evidence-based fiscal and accounting policy development in emerging economy contexts.

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