Open AccessTHE RELATIONS AMONG FIRM CHARACTERISTIC, CAPITAL INTENSITY, INSTITUTIONAL OWNERSHIP, AND TAX AVOIDANCE: SOME EVIDENCE FROM INDONESIA
Author(s) -
Wirmie Eka Putra,
Yuliusman Yuliusman,
Raeza Firsta Wisra
Publication year - 2020
Publication title -
humanities and social sciences reviews
Language(s) - English
Resource type - Journals
ISSN - 2395-6518
DOI - 10.18510/hssr.2020.8142
Subject(s) - business , profitability index , tax avoidance , leverage (statistics) , stock exchange , accounting , public economics , finance , economics , double taxation , machine learning , computer science
Purpose of the study: This study is to determine the effect of profitability, leverage, company size, capital intensity, and institutional ownership simultaneously and partially on tax avoidance in Indonesia.
Methodology: This study uses a quantitative approach to the type of descriptive research. The population of this research is property, real estate, and building constructs companies from 2013 - 2017, as many as 63 companies, which listed on the Indonesia Stock Exchange (IDX). While the samples in this study were 31 companies. The data analysis method used is multiple linear regression analysis.
Principal Findings: Profitability, leverage, company size, and institutional ownership partially influencing tax avoidance. However, the intensity of capital partly does not affect tax avoidance.
Applications of this study: This study suggests that the government makes several efforts to intervene to increase tax literacy on companies, the public, and expand access to higher education, as well as improve the quality of the democratization process to enhance tax compliance in Indonesia.
Novelty/Originality of this study: This research brings new evidence on the relationship between profitability, leverage, company size, and institutional ownership on tax avoidance in Indonesia.