@article{ICoBLAST913,
author = {Dian Wardhani and Eiffeliena Fisikaningputri and Rifki Prasetyo and Syarifa Fidyana},
title = {Does CEO Power Drive Corporate Tax Avoidance? Insights from Indonesia’s Energy Industry},
journal = {International Conference on Vocational Business, Logistic, Accounting, Supply Chain, Tax (ICoBLAST)},
volume = {1},
number = {1},
year = {2026},
keywords = {},
abstract = {Introduction/Main Objectives: This study aims to examine the effect of CEO power on tax avoidance in energy sector companies listed on the Indonesia Stock Exchange.Background Problems: CEOs hold a strategic role in shaping corporate policies, including tax avoidance strategies that can influence transparency and fiscal compliance. However, the extent to which CEO influence impacts tax avoidance remains debated academically, with limited empirical evidence. This study addresses this gap by providing empirical evidence of CEO power on tax avoidance in the energy sector.Novelty: This study examines how CEO power influences corporate tax avoidance in the Indonesian energy sector, an area with limited prior research. It also provides sector-specific insights that deepen understanding of how managerial power dynamics affect corporate tax strategies in emerging economies.Research Methods: The study uses a quantitative research method. CEO power is measured through three specific dimensions: expert, prestige, and ownership, while tax avoidance is measured by the effective tax rate (ETR). Data are analyzed using multiple linear regression to examine the relationship between the variables.Findings/Results: The study shows that CEO expertise, measured by tenure, and CEO prestige, indicated by education level, reduce corporate tax avoidance. Meanwhile, CEO ownership has no significant impact, suggesting that personal financial stakes do not influence tax behavior.Conclusion: This study finds that CEO expertise (tenure) and CEO prestige (education) decrease corporate tax avoidance, while CEO ownership has no significant impact. The results highlight the importance of leadership quality in promoting compliance and highlight the need for governance policies that consider CEO experience and education to strengthen responsible tax practices.Implementation Potential: The results of this study can be applied by companies through enhancing recruitment and promotion policies that prioritize CEO candidates with strong educational backgrounds and extensive leadership experience. Regulators and policymakers may also use these insights to design governance frameworks that emphasize the role of leadership quality in reducing tax avoidance, thereby improving transparency, accountability, and long-term corporate sustainability. Keywords: CEO power; CEO expertise; CEO prestige; CEO ownership; tax avoidance.JEL Classification: G3; H2; M2.},
pages = {250--264} url = {https://proceedings.undip.ac.id/index.php/ICoBLAST/article/view/913}
}