THE EFFECT OF INSTITUTIONAL OWNERSHIP, FAMILY OWNERSHIP, AND THIN CAPITALIZATION ON TAX AVOIDANCE Achmad Tarmizi, Didin Hikmah Perkasa, Dian Meliantari, Siti Annisa Wahdiawati
Universitas Dian Nusantara
Abstract
Companies in Indonesia as taxpayers have the goal of maximizing the amount of profit so that the value of the company^s shares can increase
The purpose of this study was to examine and analyze the effect of institutional ownership, family ownership, and thin capitalization on tax avoidance. This study uses data from manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2021, this study uses a purposive sampling method. The sample of this study there are 6 companies that meet the criteria. This study uses panel data regression analysis method which is a combination of time series and cross data to obtain more informative data.
From the table of the results of the regression test ^Coefficient^ it can be seen that the significant value for Institutional Ownership is 0.0295 less than 0.05 (alpha 5%) with a positive beta value in accordance with the hypothesis proposed in this study. So it can be stated that institutional ownership has a significant positive effect on tax avoidance at the 95% confidence level. From the table of the results of the ^Coefficient^ regression test, it can be seen that the significant value for family ownership is 0.2213 more than 0.05 (alpha 5%) with a negative beta value and is not in accordance with the hypothesis proposed in this study. So it can be stated that family ownership has no effect on avoidance.
From the table of the results of the ^Coefficient^ regression test, it can be seen that the significant value for Thin Capitalization is 0.0103 less than 0.05 (alpha 5%) with a positive beta value in accordance with the hypothesis proposed in this study. So it can be stated that Thin Capitalization has a significant positive effect on tax avoidance
From the table, it is known that the significant value is 0.005389 <0.05, which means that Institutional Ownership, Family Ownership and Thin Capitalization jointly affect jointly affect the dependent variable of tax avoidance
Keywords: tax avoidance, institutional ownership, family ownership, thin capitalization
Topic: Management (HR, Marketing, Finance, Operational, and Strategic Management)
