The Effects of Institutional Ownership, Independent Board of Commissioners, Profitability and Leverage on Tax Avoidance

Abstract

Tax avoidance is a step taken legally by using loopholes in tax regulations and laws that aim to reduce the amount of tax that must be paid by the company. This research aims to examine "the effect of institutional ownership, independent board of commissioners, profitability and leverage on tax avoidance" in manufacturing companies listed on the Indonesia Stock Exchange. The object of research is manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2021. The population in this research is all manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2021 with a total of 180 companies. While the sample for this research was determined by purposive sampling method. The number of manufacturing companies sampled was 82 companies, so that 246 observation data were obtained during this research. The analysis method used is multiple linear regression analysis. Hypothesis testing and model testing using determination test, f test and t test. The results showed that the variables of institutional ownership and independent board of commissioners had no effect on tax avoidance. While the variables of profitability and leverage affect tax avoidance.