Proceedings of the 2023 Brawijaya International Conference (BIC 2023)

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The Role of Multiple Large Shareholders (MLS) and Family Firms (As Moderating) on Tax Avoidance in Indonesia

Authors
Nindhita Nisrina Sari1, Siti Nuryanah1, Sri Indah Nikensari2, *
1Universitas Indonesia, Depok, Indonesia
2Universitas Negeri Jakarta, East Jakarta, Indonesia
*Corresponding author. Email: indah_nikensari@unj.ac.id
Corresponding Author
Sri Indah Nikensari
Available Online 29 October 2024.
DOI
10.2991/978-94-6463-525-6_77How to use a DOI?
Keywords
Shareholders; Book-tax differences; Family firms
Abstract

Conflicts of interest between shareholders often arise, including in tax avoidance decisions. This research aims to explore the role of multiple large shareholders (MLS) on tax avoidance in the firm, and whether family-held firms influence its relation. MLS explained as the second largest shareholders who at least held 10% of shares, while tax avoidance measured by book-tax differences. This research used panel data regression analysis techniques to analyze sample data from 68 public companies in Indonesia from 2017 until 2020. The results show that MLS is negative and significantly related to corporate tax avoidance, indicating that MLS has incentives to monitor and control agency problems that lead to reduced tax avoidance practices for private benefits. In addition, family firms strengthen the negative relationship between MLS and tax avoidance. This shows that the existence of MLS is effective in reducing tax avoidance since they have quite high voting rights to monitor corporate tax avoidance. On the other hand, family-held firms further strengthen MS in reducing tax avoidance as their family names could degenerate if they collude to aggressively avoid paying taxes.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2023 Brawijaya International Conference (BIC 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
29 October 2024
ISBN
978-94-6463-525-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-525-6_77How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Nindhita Nisrina Sari
AU  - Siti Nuryanah
AU  - Sri Indah Nikensari
PY  - 2024
DA  - 2024/10/29
TI  - The Role of Multiple Large Shareholders (MLS) and Family Firms (As Moderating) on Tax Avoidance in Indonesia
BT  - Proceedings of the 2023 Brawijaya International Conference (BIC 2023)
PB  - Atlantis Press
SP  - 704
EP  - 713
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-525-6_77
DO  - 10.2991/978-94-6463-525-6_77
ID  - Sari2024
ER  -