Analysis of the Influence of Institutional Ownership, Sales Growth, Profitability, and Company Size on Tax Avoidance

Abstract

Aims: To determine and examine the effect of institutional ownership, sales growth, profitability, and company size on tax avoidance in Industrial Sector Companies listed on the Indonesia Stock Exchange. Studi Design: quantitative research. Place and Duration of Study: Industrial Sector companies listed on the Indonesia Stock Exchange for the period 2017 to 2021. Methodology: The population used in this study are industrial sector companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2021, with a total of 54 companies. The data is collected using the documentation technique, then sampling is carried out using the purposive sampling method, meaning that the sample selection is based on certain criteria, 15 companies are obtained which will be analyzed over 5 years, totaling 75. However, there are 18 outlier data after the normality test is carried out so the number of samples is 57, and data analysis uses multiple linear regression analysis using SPSS version 24. Results: institutional ownership, sales growth, and company size do not have an impact on tax avoidance. However, profitability has a negative effect on tax avoidance. This implies that a high level of profitability indicates a decrease in tax avoidance practices by businesses, as some companies tend to prioritize profitability and cash flow over complex tax strategies. Conclusion: This research, should be able to serve as a view for companies or corporate taxpayers in making decisions, especially regarding tax planning in the Company. Further researchers are recommended to add research periods and more varied variables apart from the four independent variables that have been used in this study.