Published date: Jul 18 2023

Journal Title: KnE Social Sciences

Issue title: Transdisciplinary Symposium on Business, Economics, and Communication (TSBEC 2022)

Pages: 1–10

DOI: 10.18502/kss.v8i12.13645

Achmad Tarmiziachmad.tarmizi@undira.ac.idUniversitas Dian Nusantara, Jakarta, Indonesia

Didin Hikmah PerkasaUniversitas Dian Nusantara, Jakarta, Indonesia

Dian MeliantariUniversitas Dian Nusantara, Jakarta, Indonesia

Siti Annisa WahdiawatiUniversitas Dian Nusantara, Jakarta, Indonesia

Taxpaying companies in Indonesia aim to maximize profit to increase the company’s shares value so that more investors are interested in investing in the company. This practice causes companies to try to pay taxes to a minimum by carrying out tax management without violating tax laws. This study examines and analyzes the effect of institutional ownership, family ownership, and thin capitalization on tax avoidance. Data used were from the manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2021, using a purposive sampling technique. In the sample of this study, 6 companies met the criteria. This research uses the panel data regression analysis method which is a combination of time series and cross data to get more informative data. The table of the coefficient regression test result shows that the significant value for Institutional Ownership is 0.0295, <0.05 (alpha 5%) with a positive beta value in accordance with the hypothesis proposed in this study. Therefore, it can be stated that institutional ownership has a significant positive effect on tax avoidance at the 95% confidence level. The significant value for family ownership is 0.2213, >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. And, the significant value for thin capitalization is 0.0103, <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 at the 95% confidence level. The F-statistic test was used to measure the accuracy of the sample regression function in estimating the actual value (goodness of fit). The F-test analyzes whether the independent variables are able to explain the dependent variable well or whether the model used is fit or not. The F-test in this study uses a significance level of 5%. 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 simultaneously affect the dependent variable tax avoidance.

Keywords: tax avoidance, institutional ownership, family ownership, thin capitalization

[1] Olivia I, Dwimulyani S. Pengaruh Thin Capitalization dan Profitabilitas Terhadap Penghindaran Pajak dengan Kepemilikan Institusional sebagai Variabel Moderasi. InProsiding Seminar Nasional Pakar 2019 Apr 23 (pp. 2- 54). https://doi.org/10.25105/pakar.v0i0.4337.

[2] Silaban AC, Purba H. The effect of corporate social responsibility disclosure and corporate governance on tax avoidance [IJMR]. EPRA International Journal of Multidisciplinary Research. 2020;6(1):23–34.

[3] Putri VR, Putra BI. Pengaruh leverage, profitability, ukuran perusahaan dan proporsi kepemilikan institusional terhadap tax avoidance. Jurnal Manajemen Dayasaing. 2017 Aug;19(1):1–1.

[4] Subagiastra K, Arizona IP, Mahaputra IN. Pengaruh profitabilitas, kepemilikan keluarga, dan good corporate governance terhadap penghindaran pajak (Studi pada perusahaan manufaktur di Bursa Efek Indonesia). JIA ( Jurnal Ilmiah Akuntansi). 2016;1(2).

[5] Maharani W, Juliarto A. Pengaruh kepemilikan keluarga terhadap tax avoidance dengan kualitas audit sebagai variabel moderating. Diponegoro Journal of Accounting. 2019;8(4).

[6] Taylor G, Richardson G. The determinants of thinly capitalized tax avoidance structures: evidence from Australian firms. Journal of International Accounting, Auditing and Taxation. 2013 Jan;22(1):12–25.

[7] Sianipar NK, Yahya I, Sadalia I. The determinants of tax avoidance with firm size as moderating variable at multinational companies. Orang Journal of Research and Review. 2020 Jul;7:237–242.

[8] Afifah SN, Prastiwi D. Pengaruh Thin Capitalization Terhadap Penghindaran Pajak. Sumber. 2017;1(871):00.

[9] Jumailah V. Pengaruh thin capitalization dan konservatisme akuntansi terhadap tax avoidance dengan kepemilikan institusional sebagai variabel moderasi. Management and Accounting Expose. 2020 Jun;3(1):13–21.

[10] Ghozali I. Aplikasi analisis multivariate dengan program SPSS. Badan Penerbit Universitas Diponegoro; 2006.