The Effect Of Cfo Co-Optation, Financial Distress, And Managerial Ability On Tax Avoidance
Abstract
This study is motivated by the rising concern over tax avoidance practices in the financial sector, an industry characterized by high regulatory pressure and complex governance structures. The main issue examined is how internal organizational dynamics CFO Cooptation, Financial Distress, and Managerial Ability shape corporate tax avoidance under different levels of gender diversity. The objective is to empirically analyze the influence of these variables on tax avoidance among financial firms listed on the Indonesia Stock Exchange during 2020–2024. Using a quantitative approach, the study employs panel data regression on 250 observations and conducts separate analyses for high and low gender diversity settings. The findings reveal that CFO Cooptation and Managerial Ability have significant negative effects, whereas Financial Distress shows a significant positive effect on tax avoidance. Situational analysis indicates that gender diversity weakens the positive impact of Financial Distress and strengthens the ethical influence of Managerial Ability in reducing tax avoidance. The study concludes that managerial characteristics and gender diversity jointly shape corporate tax behavior, highlighting the importance of inclusive governance and gender-balanced leadership in promoting fiscal transparency.
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Copyright (c) 2026 Nursyifah Fauziah, Dirvi Surya Abbas, Imam Hidayat
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EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
