| Summary: | This research discusses how the role of the diversity gender of the board directors related to the prospect theory and the previous research that stated that women has a risk averse nature. The data that is used in this research come from all sectors of the company in Indonesia Stock Exchange excluding financial company in 2012 – 2017 with a total of observation 1399 samples. The analysis technique which is used in this research is regression linear method analysis with the help of STATA 14.0 software. Gender diversity on the director boards is a variable which will be tested whether it will affect the tax avoidance with several control variables. The result of the regression shows that gender diversity does not have any influence on tax avoidance. The additional testing is done by performing four interaction tests between independent variable with the variable of independent board, audit committee, big 4 auditor, and blockheld. The result indicates that there are not any tests which signify that gender diversity on the director boards affects tax avoidance. This result happened because of the companies which possess the high proportion of director boards does not necessarily have high ETR as well, so that it can be concluded that not all women have risk averse nature. This can be associated with the theory of liberal feminism that states women do not want to be distinguished from men except in terms of gender.
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