THE EFFECT OF POLITICAL CONNECTIONS, INDEPENDENT COMMISSIONERS, AND INSTITUTIONAL OWNERSHIP ON TAX AVOIDANCE IN LQ45 COMPANIES 2015-2020 PERIOD
Keywords:
political connections, independent commissioners, institutional ownership, tax avoidanceAbstract
The purpose of this study was to analyze the effect of political connections, independent commissioners, institutional ownership on tax avoidance. The data used is secondary data. The population in this study were LQ45 companies on the Indonesia Stock Exchange in 2015-2020 with a total sample of 45 companies that met the criteria by using purposive sampling technique. The independent variables used are political connections, independent commissioners, and institutional ownership which are tested for their influence on the dependent variable, namely tax avoidance. The analytical technique used is multiple linear regression analysis using t test for hypothesis testing. The results of the study show that political connections have no significant effect on tax avoidance. Independent Commissioner has a negative and significant effect on tax avoidance. Institutional ownership has a positive effect on tax avoidance. Overall, the dependent variable above simultaneously affects tax avoidance.
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References
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Richardson, G. and R. Lanis. 2013. "The Impact of Board of Director Oversight Characteristics on Corporate Tax Aggressiveness: An Empirical Analysis". Journal of Accounting and Public Policy, 32. pp. 68-88.
Siegfried, J. 1972. The relationship between economic structure and the effect of political influence: Empirical evidence from the federal corporation income tax program.
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Wahidahwati, 2011. The Effect of Managerial Ownership and Institutional Ownership on Corporate Debt Policy: An Agency Theory Perspective. IV National Symposium of the Indonesian Accountants Association.
www.bps.go.id
Annisa, Nuralifmida Ayu, 2012. "The Effect of Good Corporate Governance on Tax Avoidance (Study of Companies Listed on the IDX in 2008)". S1 Thesis. Sebelas Maret University. Surakarta.
Chen, S. (2010). "Are Family Firms More Tax Aggressive than Non-Family Firms?" Journal of Financial Economics. Vol. 95, pp. 41-61.
Desai, M., & Dharmapala, A. D. (2006). Corporate Tax Avoidance and High-Powered Incentives. Journal of Financial Economics, 79, 145-179.
Dyreng, S.D., Hanlon, M. and Maydew, E.L. (2010) Long-Run Corporate Tax Avoidance. The Accounting Review, 83, 61-82
Ghozali, Imam. 2018. Application of Multivariate Analysis with the SPSS Program. Semarang: Diponegoro University Publishing Agency .
Hanlon, Michelle, & Heitzman, Shane. (2010). A review of tax research. Journalof
Accounting and Economics, 50 (40). 127 - 178. Hasibuan, Malayu S.P. 2010. Human Resource Management. Jakarta: PT Bumi Aksara.
Kim, Chansog (Francis), and Liandong Zhang. 2013. Corporate Political Connections and Tax Aggressiveness. City University of Hong Kong.
Lanis, R. and G. Richardson. 2011. The Effect of Board of Director Composition on
Corporate Tax Aggressiveness. J. Account. Public Policy, 50-70.
Luh, Ni, and Putu Puspita. "The Effect of Company Size, Leverage, Profitability and Corporate Social Responsibility on Tax Avoidance." EJournal of Accounting 21, no. 2 (2017): 882-911.
Merslythalia, D. R. and Lasmana, M. S. (2016) 'Independent Commissioner, and Institutional Ownership Towards Tax Avoidance the Effect of Executive Competency, the Firm Size, the Independent Commissioner and the Institutional Ownership Towards Tax Avoidance', Scientific Journal of Accounting and Business, 11(2), pp. 117-124.
Minnick and Noga. 2010. "Do corporate governance characteristics influence tax management?". Journal of Corporate Finance, Vol. 16, pp. 703-718.
Nugroho, R., & Rosidy, D. 2019. The Effect of Independent Commissioners and Executive Compensation on Tax Aggressiveness. Info Artha, 3(1), 55-65.
N. A. Puspitasari, and D. Darsono. 2014 "FACTORS AFFECTING DIVIDEN POLICY," Diponegoro Journal of Accounting, vol. 3, no. 2, pp. 846-85.
Rego, S.O. (2003). "Tax-avoidance Activities of U.S. Multinational Firms". Contemporary Accounting Research, 20(4), pp. 805-833..
Richardson, G. and R. Lanis. 2013. "The Impact of Board of Director Oversight Characteristics on Corporate Tax Aggressiveness: An Empirical Analysis". Journal of Accounting and Public Policy, 32. pp. 68-88.
Siegfried, J. 1972. The relationship between economic structure and the effect of political influence: Empirical evidence from the federal corporation income tax program.
Sugiyono. 2017. Quantitative, Qualitative and R&D Research Methods. Bandung: PT Alfabet. Sunyoto.
Sunyoto. DDanang. 2013. Accounting Research Methodology. Bandung: PT Refika Aditama Member of Ikapi.
Swingly, C., & Sukartha, I. (2015). The Effect of Executive Character, Audit Committee, Company Size, Leverage and Sales Growth on Tax Avoidance. E-Journal of Accounting, Udayana University, 10.1 (2015): 47-62.
Law No. 36 of 2008 on the Fourth Amendment to Law No. 7 of 1983 on Income Tax. Law No. 28 of 2007 on the Third Amendment to Law No. 6 of 1983 on General Provisions and Tax Procedures. Law Number 16 Year 2009 on pFourth.
Law No. 6 of 1983 concerning General Provisions and Tax Procedures. Waluyo. 2011. Indonesian Taxation Book I. Edition 10. Salemba Empat. Jakarta. Yusuf, Haryono. 2005. Accounting Basics. Yogyakarta: YKPN Accounting Academy.
Wahidahwati, 2011. The Effect of Managerial Ownership and Institutional Ownership on Corporate Debt Policy: An Agency Theory Perspective. IV National Symposium of the Indonesian Accountants Association.
www.bps.go.id
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Published
2026-02-17
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