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Abstract

This study aims to examine whether foreign institutional ownership and management incentives can prevent tax avoidance practices in companies. The study was carried out on the manufacturing companies registered on IDX in the 2018-2020 period with 150 observations taken from 50 samples of companies. The sample selection used was purposive sampling. The data were analyzed using multiple regression. The results show that ownership of foreign institutions and management incentives negatively affect tax avoidance, which means that both factors can reduce tax avoidance. This result confirms the perspective of the agency theory used. Likewise, this study helps to enrich agency theory through the role of foreign institutional ownership and management incentives in tax avoidance, and it also helps to assist companies in considering these two factors to minimize tax avoidance practices.

Bahasa Abstract

Penelitian ini bertujuan untuk mengetahui apakah faktor kepemilikan institusi asing dan insentif manajemen mampu dalam mencegah praktik penghindaran pajak di perusahaan. Penelitian dilakukan pada perusahaan manufaktur terdaftar di BEI periode 2018-2020 dengan total 150 pengamatan yang diperoleh dari 50 sampel perusahaan. Pemilihan sampel dilakukan dengan menggunakan purposive sampling. Data penelitian dianalisis menggunakan regresi berganda. Hasil temuan menunjukkan bahwa kepemilikan institusi asing dan insentif manajemen berpengaruh negatif terhadap penghindaran pajak, yang berarti kedua faktor tersebut mampu dalam mengurangi tindakan penghindaran pajak secara agresif. Temuan ini mengonfirmasi perspektif dari teori keagenan yang digunakan. Sejalan dengan hal itu, maka temuan ini berkontribusi memperkaya teori agensi melalui peran kepemilikan institusi asing dan insentif manajemen pada penghindaran pajak, serta membantu perusahaan dalam mempertimbangkan kedua faktor tersebut untuk meminimalkan praktik penghindaran pajak.

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