Increase the role of independent commissioners

Oct 13, 2025 by magicalceylontours.com 96 views

The Influence of Independent Commissioners, Inventory Intensity, Leverage, Size, and Profitability on Tax Management in Manufacturing Companies of Food and Beverage Subsectors Registered on the IDX 2015-2020

Introduction

Tax management is a crucial aspect of any business, and its effectiveness can significantly impact a company's financial performance. In the context of manufacturing companies in the food and beverage subsectors registered on the Indonesia Stock Exchange (IDX), understanding the factors that influence tax management is essential for stakeholders, including investors, management, and regulators. This study aims to determine the effect of independent commissioners, inventory intensity, leverage, company size, and profitability on tax management in these companies during the 2015 to 2020 period.

Methodology

The population data used in this study comes from companies listed on the IDX during the year. The sampling method used is purposive sampling, which produces 10 companies as a sample with a total of 60 observations. The results of this study are based on the analysis of the data collected from these companies.

The Role of Independent Commissioners

Independent Commissioner has the responsibility to supervise and provide direction to company management. Although it is expected to contribute to more transparent and accountable tax management, the results show that the role of independent commissioners is not significant enough to influence tax management decisions. This can be caused by lack of their active involvement in company taxation policies or perhaps also as a result of other more dominant internal influences.

Inventory and Leverage Intensity

Inventory and leverage intensity also do not show significant effect on tax management. High inventory intensity is not always directly proportional to tax efficiency, because many external factors can affect inventory and tax management. Likewise, high leverage does not always contribute to tax savings. Companies with large debt may face higher risk related to tax obligations arising from debt interest, which can have an impact on overall tax management.

Company Size

The size of the company is proven to have a significant influence on tax management. Larger companies tend to have more resources, including in terms of tax management. They can take advantage of more sophisticated tax planning strategies and have better access to professional tax consultations. This explains why company size is an important variable in the context of tax management.

Profitability and its Impact

Although profitability is expected to have an effect on tax management, the results show that this does not happen. This may be caused by the existence of a tax avoidance strategy adopted by the company, which can reduce the positive relationship between profitability and tax obligations that must be paid.

Research Implications

The results of this study have important implications for stakeholders, including investors, management, and regulators, in understanding the factors that influence tax management in the food and beverage sector. This also shows the need to increase the role of independent commissioners and better understanding of the impact of the company's size on tax strategies.

Conclusion

In all, this research provides valuable insights on how various variables interact in the context of tax management in companies in the food and beverage subsectors registered on the IDX, so that it can be a reference for further research in the future. The findings of this study can help stakeholders to better understand the factors that influence tax management and make informed decisions to improve the effectiveness of tax management in these companies.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase the role of independent commissioners: Independent commissioners should be more actively involved in company taxation policies to ensure more transparent and accountable tax management.
Improve tax management strategies: Companies should take advantage of more sophisticated tax planning strategies and have better access to professional tax consultations to improve tax management.
Better understanding of the impact of company size: The impact of company size on tax management should be better understood to ensure that larger companies are taking advantage of more sophisticated tax planning strategies.
Tax avoidance strategies: Companies should be aware of the potential for tax avoidance strategies to reduce the positive relationship between profitability and tax obligations that must be paid.

Limitations of the Study

This study has several limitations, including:

Sample size: The sample size of 10 companies is relatively small, which may limit the generalizability of the findings.
Data collection: The data used in this study is based on secondary data, which may be subject to errors or biases.
Methodology: The purposive sampling method used in this study may not be representative of the population of companies in the food and beverage subsectors registered on the IDX.

Future Research Directions

Future research should aim to:

Increase the sample size: A larger sample size would provide more robust findings and increase the generalizability of the results.
Use primary data: Primary data collection would provide more accurate and reliable data, which would improve the validity of the findings.
Use more sophisticated methodologies: More sophisticated methodologies, such as regression analysis, could be used to analyze the data and provide more detailed insights into the factors that influence tax management.

Conclusion

In conclusion, this study provides valuable insights into the factors that influence tax management in companies in the food and beverage subsectors registered on the IDX. The findings of this study can help stakeholders to better understand the factors that influence tax management and make informed decisions to improve the effectiveness of tax management in these companies.
Frequently Asked Questions (FAQs) about the Influence of Independent Commissioners, Inventory Intensity, Leverage, Size, and Profitability on Tax Management in Manufacturing Companies of Food and Beverage Subsectors Registered on the IDX 2015-2020

Q: What is the main objective of this study?

A: The main objective of this study is to determine the effect of independent commissioners, inventory intensity, leverage, company size, and profitability on tax management in manufacturing companies of food and beverage subsectors registered on the IDX 2015-2020.

Q: What is the significance of this study?

A: This study is significant because it provides valuable insights into the factors that influence tax management in companies in the food and beverage subsectors registered on the IDX. The findings of this study can help stakeholders to better understand the factors that influence tax management and make informed decisions to improve the effectiveness of tax management in these companies.

Q: What is the role of independent commissioners in tax management?

A: Independent commissioners have the responsibility to supervise and provide direction to company management. Although it is expected to contribute to more transparent and accountable tax management, the results show that the role of independent commissioners is not significant enough to influence tax management decisions.

Q: What is the impact of inventory intensity on tax management?

A: Inventory intensity does not show a significant effect on tax management. High inventory intensity is not always directly proportional to tax efficiency, because many external factors can affect inventory and tax management.

Q: What is the impact of leverage on tax management?

A: Leverage does not show a significant effect on tax management. High leverage does not always contribute to tax savings. Companies with large debt may face higher risk related to tax obligations arising from debt interest, which can have an impact on overall tax management.

Q: What is the impact of company size on tax management?

A: The size of the company is proven to have a significant influence on tax management. Larger companies tend to have more resources, including in terms of tax management. They can take advantage of more sophisticated tax planning strategies and have better access to professional tax consultations.

Q: What is the impact of profitability on tax management?

A: Although profitability is expected to have an effect on tax management, the results show that this does not happen. This may be caused by the existence of a tax avoidance strategy adopted by the company, which can reduce the positive relationship between profitability and tax obligations that must be paid.

Q: What are the implications of this study?

A: The results of this study have important implications for stakeholders, including investors, management, and regulators, in understanding the factors that influence tax management in the food and beverage sector. This also shows the need to increase the role of independent commissioners and better understanding of the impact of the company's size on tax strategies.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Sample size: The sample size of 10 companies is relatively small, which may limit the generalizability of the findings.
Data collection: The data used in this study is based on secondary data, which may be subject to errors or biases.
Methodology: The purposive sampling method used in this study may not be representative of the population of companies in the food and beverage subsectors registered on the IDX.

Q: What are the future research directions?

A: Future research should aim to:

Increase the sample size: A larger sample size would provide more robust findings and increase the generalizability of the results.
Use primary data: Primary data collection would provide more accurate and reliable data, which would improve the validity of the findings.
Use more sophisticated methodologies: More sophisticated methodologies, such as regression analysis, could be used to analyze the data and provide more detailed insights into the factors that influence tax management.

Q: What are the recommendations of this study?

A: Based on the findings of this study, the following recommendations are made:

Increase the role of independent commissioners: Independent commissioners should be more actively involved in company taxation policies to ensure more transparent and accountable tax management.
Improve tax management strategies: Companies should take advantage of more sophisticated tax planning strategies and have better access to professional tax consultations to improve tax management.
Better understanding of the impact of company size: The impact of company size on tax management should be better understood to ensure that larger companies are taking advantage of more sophisticated tax planning strategies.
Tax avoidance strategies: Companies should be aware of the potential for tax avoidance strategies to reduce the positive relationship between profitability and tax obligations that must be paid.