Financial Distress, Company Size, and Ownership to Tax Avoidance in the Listed Indonesia Stock Exchange Companies

Author
Purnamawati
Keywords
Financial Distress; Company Size; Institutional Ownership; Tax Avoidance.
Abstract
This paper assesses the effect of financial distress, business size, and institutional ownership affect tax avoidances in the Food and Beverage Sub-Sector Manufacturing Industry Registered at Listed Indonesia Stock Exchange Companies, IDX in 2016-2020. With a quantitative analysis approach, this study finds that the financial distress affects tax avoidance due to the decline in financial condition as experienced by the company. The right of large companies has a tendency to maintain its image to the public so that they will try to comply with the terms of tax payments. Meanwhile, corporate ownership has no influence on tax avoidance due to pressure on owners to implement aggressive tax policies in order to increase profits.
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Received : 11 March 2021
Accepted : 21 May 2021
Published : 28 May 2021
DOI: 10.30726/ijmrss/v8.i2.2021.82014

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