Ownership Structure On Tax Avoidance: Empirical Study On Manufacturing Companies
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Published:
Sep 28, 2022
Keywords:
ownership institutional, ownership manajerial, ownership public, tax avoidance
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Abstract
The purpose of this study aims to examine the effect of ownership structure as measured by institutional and public managerial ownership on tax avoidance. The population of this study are manufacturing companies listed on the IDX in 2019. The sampling technique uses a purposive sample which is a sampling method with criteria such as manufacturing companies listed on the IDX in 2019 and companies that present annual reports during 2019. The results show that managerial ownership structure affects tax avoidance, while public ownership structure and institutional ownership structure does not affect tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange in 2019. These results indicate that companies owned by managers are more likely to carry out tax avoidance because managers have full power to prepare financial statements in accordance with their wishes compared to institutional and public ownership. This research contributes to providing information to stakeholders about which type of ownership structure is more likely to avoid tax.
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Copyright (c) 2022 Nurfadilah Yusri, Sri Wibawani Wahyuning Astuti, Dwi Irawan, Ahmad Juanda
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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RICHARDSON, G., WANG, B. & ZHANG, X. 2016. Ownership structure and corporate tax avoidance: Evidence from publicly listed private firms in China. Journal of Contemporary Accounting & Economics, 12, 141-158.
RUAN, W., TIAN, G. & MA, S. 2011. Managerial ownership, capital structure and firm value: evidence from china’s civilian-run firms. Australasian Accounting, Business and Finance Journal, 5, 73-92.
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SHACKELFORD, D. A. & SHEVLIN, T. 2001. Empirical tax research in accounting. Journal of accounting and economics, 31, 321-387.
SHANE, S. A. 2003. A general theory of entrepreneurship: The individual-opportunity nexus, Edward Elgar Publishing.
SISWANTI, I., SALIM, U., SUKOHARSONO, E. & AISJAH, S. 2017. Sustainable business of Islamic bank through on the Islamic corporate Governance and Islamic financial performance. Journal of Finance and Banking Review, 2, 15-20.
YING, T., WRIGHT, B. & HUANG, W. 2017. Ownership structure and tax aggressiveness of Chinese listed companies. International Journal of Accounting & Information Management.
ADY, S. U., SUSANTO, H. & SALIM, U. 2010. Analisis Variabel yang Berpengaruh terhadap Spread Harga Saham pada Industri Manufaktur di Bursa Efek Jakarta. Wacana, Jurnal Sosial dan Humaniora, 13, 227-243.
ALZOUBI, E. S. S. 2016. Ownership structure and earnings management: evidence from Jordan. International Journal of Accounting & Information Management.
ANISMA, Y., DP, E. N. & JANNAH, R. 2015. Uji Faktor-faktor yang Mempengaruhi Pengembangan Pengungkapan melalui Praktik Pelaporan Keuangan Berbasis Internet (Internet Financial Reporting)(Studi Empiris pada 100 Perusahaan Terkemuka di Indonesia). Riau University.
ANNUAR, H. A., SALIHU, I. A. & OBID, S. N. S. 2014. Corporate ownership, governance and tax avoidance: An interactive effects. Procedia-Social and Behavioral Sciences, 164, 150-160.
BADERTSCHER, B. A., KATZ, S. P. & REGO, S. O. 2013. The separation of ownership and control and corporate tax avoidance. Journal of accounting and economics, 56, 228-250.
BIRD, A. & KAROLYI, S. A. 2017. Governance and Taxes: Evidence from Regression Discontinuity (Retracted). The Accounting Review, 92, 29-50.
BOUSSAIDI, A. & HAMED, M. S. 2015. The impact of governance mechanisms on tax aggressiveness: empirical evidence from Tunisian context. Journal of Asian Business Strategy, 5, 1-12.
BRADSHAW, M., LIAO, G. & MA, M. 2016. Ownership structure and tax avoidance: Evidence from agency costs of state ownership in China. Available at SSRN 2239837.
CABELLO, O. G., GAIO, L. E. & WATRIN, C. 2019. Tax avoidance in management-owned firms: evidence from Brazil. International Journal of Managerial Finance.
DARSANI, P. A. & SUKARTHA, I. M. 2021. The Effect of Institutional Ownership, Profitability, Leverage and Capital Intensity Ratio on Tax Avoidance. American Journal of Humanities and Social Sciences Research (AJHSSR), 5, 13-22.
DESAI, M. A. & DHARMAPALA, D. 2009. Corporate tax avoidance and firm value. The review of Economics and Statistics, 91, 537-546.
DYRENG, S. D., HANLON, M. & MAYDEW, E. L. 2010. The effects of executives on corporate tax avoidance. The accounting review, 85, 1163-1189.
FRIESE, A., LINK, S. & MAYER, S. 2008. Taxation and corporate governance—The state of the art. Tax and corporate governance. Springer.
GINTING, S. 2016. Pengaruh corporate governance dan kompensasi rugi fiskal terhadap penghindaran pajak dengan ukuran perusahaan sebagai variabel moderating. Jurnal Wira Ekonomi Mikroskil, 6, 165-176.
HADI, J. & MANGOTING, Y. 2014. Pengaruh struktur kepemilikan dan karakteristik dewan terhadap agresivitas pajak. Tax & Accounting Review, 4.
HANLON, M. & HEITZMAN, S. 2010. A review of tax research. Journal of accounting and Economics, 50, 127-178.
HARDYMENT, R., TRUESDALE, P. & TUFFREY, M. 2011. Tax as a corporate responsibility issue. Corporate Citizenship Insights.
HATTA, M. & FENNY, M. 2019. PENGARUH KEPEMILIKAN ISNTITUSIONAL, KEPEMILIKAN PUBLIK DAN KEPEMILIKAN TERKONSENTRASI TERHADAP PENGHINDARAN PAJAK (Studi Pada Perusahaan LQ 45 Tahun 2013-2016).
JENSEN, M. C. & MECKLING, W. H. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3, 305-360.
KHURANA, I. K. & MOSER, W. J. 2013. Institutional shareholders' investment horizons and tax avoidance. The Journal of the American Taxation Association, 35, 111-134.
LANDRY, S., DESLANDES, M. & FORTIN, A. 2013. Tax aggressiveness, corporate social responsibility, and ownership structure. Journal of Accounting, Ethics & Public Policy, 14, 611-645.
MAIS, R. G. & PATMANINGSIH, D. 2017. Effect Of Good Corporate Governance On Tax Avoidance of The Company In Listed of The Indonesia Stock Exchange (Bei). Jurnal STEI Ekonomi, 26, 230-243.
MANGOTING, Y., PRASTYA, D. M., SHANTY, V. C. & PRAYITNO, S. F. 2019. Transparency as a way to anticipate tax avoidance through corporate social responsibility. Jurnal Dinamika Akuntansi, 11, 15-25.
NGADIMAN, N. & PUSPITASARI, C. 2017. Pengaruh Leverage, Kepemilikan Institusional, Dan Ukuran Perusahaan Terhadap Penghindaran Pajak (Tax Avoidance) Pada Perusahaan Sektor Manufaktur Yang Terdaftar Di Bursa Efek Indonesia 2010-2012. Jurnal Akuntansi, 18, 408-421.
NUGROHO, W. C. & AGUSTIA, D. 2018. Corporate governance, tax avoidance, and firm value. AFEBI Accounting Review, 2, 15-29.
PRAYOGO, K. H. & DARSONO, D. 2015. Faktor-faktor yang Berpengaruh terhadap Penghindaran Pajak Perusahaan. Diponegoro Journal of Accounting, 4, 156-167.
RATNAWATI, V., FREDDY, D. & HARDI, H. 2018. Ownership structure, tax avoidance and firm performance. Archives of Business Research, 6.
REGO, S. O. & WILSON, R. 2009. Executive compensation, tax reporting aggressiveness, and future firm performance. Research Gate.
RICHARDSON, G., WANG, B. & ZHANG, X. 2016. Ownership structure and corporate tax avoidance: Evidence from publicly listed private firms in China. Journal of Contemporary Accounting & Economics, 12, 141-158.
RUAN, W., TIAN, G. & MA, S. 2011. Managerial ownership, capital structure and firm value: evidence from china’s civilian-run firms. Australasian Accounting, Business and Finance Journal, 5, 73-92.
SAIFUDIN, S. & YUNANDA, D. 2016. Determinasi Return on Asset, Leverage, Ukuran Perusahaan, Kompensasi Rugi Fiskal dan Kepemilikan Institusi Terhadap Penghindaran Pajak: Studi Empiris Pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2011-2014. Wiga: Jurnal Penelitian Ilmu Ekonomi, 6, 131-142.
SEPTIADI, I., ROBIANSYAH, A. & SURANTA, E. 2017. Pengaruh Manajemen Laba, Corporate Governance, Dan Corporate Social Responsibility Terhadap Tax Avoidance. Journal of Applied Managerial Accounting, 1, 114-133.
SHACKELFORD, D. A. & SHEVLIN, T. 2001. Empirical tax research in accounting. Journal of accounting and economics, 31, 321-387.
SHANE, S. A. 2003. A general theory of entrepreneurship: The individual-opportunity nexus, Edward Elgar Publishing.
SISWANTI, I., SALIM, U., SUKOHARSONO, E. & AISJAH, S. 2017. Sustainable business of Islamic bank through on the Islamic corporate Governance and Islamic financial performance. Journal of Finance and Banking Review, 2, 15-20.
YING, T., WRIGHT, B. & HUANG, W. 2017. Ownership structure and tax aggressiveness of Chinese listed companies. International Journal of Accounting & Information Management.