Title: The Effect of Institutional Ownership on Tax Avoidance with Audit Quality as a Moderating Variable

Author: Ellyzabeth Putri Vizandra

Student ID: 042014253002

Study Program: Master of Accounting

Year of Publication: 2021

Abstract:

This study aims to provide empirical evidence regarding the effect of institutional ownership on tax avoidance, with audit quality as a moderating variable. This study uses a quantitative approach with a population of manufacturing companies listed on the Indonesia Stock Exchange during the 2010–2019 period. The sample was selected using a purposive sampling method with a total of 760 observations. Data analysis used moderated regression analysis with the help of SPSS software version 25. The results show that institutional ownership has no effect on corporate tax avoidance, both at high and low ownership levels. This finding is reinforced by additional analysis that shows similar results when tax avoidance is measured using GAAP ETR. On the other hand, audit quality is proven to be able to moderate by strengthening the negative effect of institutional ownership on tax avoidance. However, audit quality is unable to moderate this effect when measured from the output side, namely using discretionary accruals, which is likely due to the weakness of less direct measurement. This study has limitations such as incomplete financial reports published by companies and limited variable data that is not available in the Osiris database. Practically, this research provides implications that the existence of institutional ownership needs to be accompanied by good audit quality to minimize tax avoidance practices.

Keywords: Institutional Ownership, Tax Avoidance, Audit Quality

Read more: https://repository.unair.ac.id/101985/2/2.%20ABSTRAK%20.pdf