KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

Ownership Structure and Tax Aggressiveness: Empirical Evidence from Indonesia

Published date: Jul 04 2024

Journal Title: KnE Social Sciences

Issue title: The 3rd Jakarta Economic Sustainability International Conference (3rd JESICA)

Pages: 318–327

DOI: 10.18502/kss.v9i20.16530

Authors:

Lidya Primta Surbakti - lidyaprimtasurbakti@upnvj.ac.id

Muhammad Auwal Kabir

Hendrik Elisa Sutejo Samosir3

Abstract:

This research paper examined how tax aggressiveness is influenced by ownership structure (managerial ownership, foreign ownership, and family ownership). The study used a population of 53 companies that engage in manufacturing sector and have been listed on the Indonesian Stock Exchange (BEI) from 2020 to 2022. In this study, tax aggressiveness was measured by effective tax rate and book-tax difference models. It also examined the relationship between foreign ownership, family ownership, and managerial ownership with tax aggressiveness using a regression model analysis with the aid of STATA. It was found that a significant relationship exists between managerial ownership and effective tax rate, similar to family ownership and book-tax difference. This implies that manufacturing companies in Indonesia that were dominated by family ownership and managerial ownership could reduce tax aggressiveness. In addition, this research also found that large companies in Indonesia tend to do more tax aggressiveness than small companies.

Keywords: tax aggressiveness, management ownership, foreign ownership, family ownership, Indonesia.

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