Governance, leadership, and compliance: Evidence on institutional ownership and executive characteristics from Indonesia

Tax avoidance remains a critical challenge in Indonesia’s food and beverage sector, causing significant revenue losses and undermining public trust. Despite regulatory reforms like the Harmonization of Tax Regulations Law, corporate tax avoidance strategies such as transfer pricing, capital intensity manipulation, and institutional ownership dynamics persist, often influenced by the characteristics of company executives. This study aims to investigate the direct effects of transfer pricing, capital intensity, and institutional ownership on tax avoidance, and examine the moderating role of executive characteristics on these relationships. Employing a quantitative approach with panel data regression analysis, this research analyzes secondary financial data from food and beverage companies listed on the Indonesia Stock Exchange from 2020 to 2023. The results indicate that capital intensity has a significant positive effect on tax avoidance, while transfer pricing and institutional ownership do not directly influence tax avoidance. Executive characteristics moderate the relationships between transfer pricing and tax avoidance, as well as institutional ownership and tax avoidance, but do not moderate the effect of capital intensity. These findings highlight the complex role of leadership traits in shaping tax behavior and suggest that policy efforts should consider executive profiles alongside financial strategies. Future research should explore additional moderating variables and extend analyses to other sectors and regions to improve tax compliance frameworks.

This study aims to: (1) determine and predict the relationship leadership style influence on tax compliance, (2) determine the influence of organizational culture on tax compliance, (3) determine the effect of firm size on tax compliance, (4) determine the effect of age corporate tax compliance, and (5) the effect of ownership on tax compliance.Associative and quantitative statistical methods are used. Object and the sample are property, real estate and construction company sector in Jakarta, and are listed on the Indonesian Stock Exchange. The sampling technique used by census method based on the number of small population. 32 respondents of tax staff / manager, accounting or finance were used as the primary data. Spread questionnaires were analyzed using Structural Equation Modeling (SEM) with an alternative Partial Least Square (PLS) using SmartPLS program version 2.0 M3. SEM-PLS is used because of the difference in scale of measurement variables and lack of samples.The results showed that of the five hypotheses proposed, only two hypotheses are acceptable. Organizational culture has an significant influence and firm size variabel affect tax compliance by 17.79% and significant with T-statistic of 2.41 (>1,96). The larger the company the more it is likely to dutifully carry out their tax compliance and predictions on the role of leadership styles to improve tax compliance is acceptable. Leadership style affect by 19,91% and no significant with T-Statistic 1.83 (<1.96) at 5% significance level, age and ownership of the company was found do not affect the Tax compliance. R-square showed value of 0.4003 indicates, the relationship model are moderate which means that all variables affect the overall 40.03% of the tax compliance.

Studies relating to tax compliance disclose that there is much likelihood of the corporate tax compliance behaviour getting influenced by the tax compliance behaviour of the in-house tax professionals. However, no studies have investigated the nexus between the personal tax compliance and the corporate tax compliance so far. Therefore, this study aims at investigating the link between the above two tax compliance behaviours and the mediating effect of the personal tax compliance behaviour of the in-house tax professionals on their corporate tax compliance behaviour. A sequential explanatory design is chosen to collect data from 392 in-house tax professionals through a survey questionnaire, and the findings obtained from the survey are supported further by the supplementary findings made by nine (9) tax experts from the tax authority, tax agency, and tax scholars of the institutions in Malaysia. Structural equation modelling is used to analyse the data taken from the findings that reveal that the factors that contribute to the tax compliance behaviour have strong influence on the personal tax compliance of the in-house tax professionals. Interestingly, their tax compliance behaviour strongly influences their corporate tax compliance as well. Further, the bootstrapping test reveals that personal tax compliance behaviour has a significant indirect effect on the corporate tax compliance. The empirical findings give a clue to the tax authorities to identify the root cause for the corporate tax non-compliance by investigating the decision makers’ tax compliance pattern. The researchers of the future studies are encouraged to follow the same method of data collection, along with the sequential explanatory design, and to consider the moderation effect of the financial constraints on the tax compliance behaviour.

This paper examines the impact of religion (i.e. Buddhism and Taoism on the whole) on corporate tax compliance in China. Using a sample of 13,743 firm-year observations from the Chinese stock market for the period of 2008–2016, we find that firms headquartered in locations with stronger religious atmosphere are more likely to do better in tax compliance. Moreover, the tax compliance effect is moderated by pecuniary motivation and religious intensity, and varies with heterogeneity in formal institutions. The effect is weakened when the pecuniary motivation is strong, such as firms with more institutional ownership or less state ownership. The effect gets strengthened in firms with more female managers, while weakened in firms located in coastal regions which are more vulnerable to culture shocks. The effect is also more pronounced in regions with weaker formal institutions, such as worse legal environment or laxer tax enforcement. Our findings are robust to a battery of robustness checks, and shed light on the role of religion in disciplining corporate tax behaviors.

Tax-related state income plays a significant part in funding state spending. The government is working to maximize tax income, but tax avoidance practices have prevented it from reaching. The effective tax rate (ETR) was used in this study to calculate tax avoidance. This study aims to gather empirical data on the relationship between tax avoidance and variables such as profitability, capital intensity, company size, institutional ownership, and corporate social responsibility. This study was done at mining companies listed on the Indonesia Stock Exchange between 2017 and 2021. From the tax perspective, the mining industry contributes so much to the national economy that it receives comparatively little oversight, resulting in unethical behavior such as tax dodging. The discussion of tax avoidance is interesting because many mining companies still do tax avoidance, which will impact the interest of the government's development. Purposive sampling was used to determine the sample size, yielding 55 samples. Data were evaluated using multiple linear regression analysis with specific criteria, and up to 11 companies were found to fit the criteria. This study's results indicate that profitability positively affects tax avoidance, while capital intensity, company size, institutional ownership, and corporate social responsibility do not.

The purpose of this study was to determine (1) the effect of both institutional ownership and earnings quality to the value of the transportation firm listed in Indonesia Stock Exchange (2) the effect of institutional ownership to the value o f the transportation firm listed in Indonesia Stock Exchange (3) the effect of earnings quality to the value of the transportation firm listed in Indonesia Stock Exchange.The population for this study is the Transportations firm listed in Indonesia Stock E xchange in 4 period of times (2009 2012), totaling 71 firm. All elements of the population are included and analysed. In other word, the study will be using census method. Due to differences in element of population in each year, data used are unbalanced p anel data. Analytical method used in this study is Multiple Linear Regression. The result is showed (1) institutional ownership and earnings quality have a significant effect to the value of the firm in simultaneous way (2) partially, institutional ownersh ip and earnings quality also have a significant effect to the value of the firm. In the future study researcher recommended to impose other variables from GCG mechanism such as; Independent Commissaries Board, Managerial Ownership, and Audit Quality.

This study aims to examine the influence of managerial ownership and institutional ownership on company value as an intervening variable in mining companies listed on the Indonesia Stock Exchange. The data used is secondary data obtained from the annual reports of mining companies listed on the Indonesia Stock Exchange for the 2019-2022 period. The analysis method used is multiple linear regression with the help of SPSS software. The results of the study show that managerial ownership has a significant positive effect on the company's value. Likewise, institutional ownership has a significant positive effect on the value of the company. As an intervening variable, it has also been proven to affect the relationship between managerial ownership, institutional ownership, and company value. The Adjusted R Square in this study is 0.309, which means that 30.9% of the variation in the value of the company can be explained by the variables of managerial ownership and institutional ownership, while the remaining 69.1% is explained by other factors that were not studied in this study.

This study aims to examine the effect of executive characteristics and institutional ownership on tax aggressiveness with leverage as an intervening variable. This type of research is classified as causative research. Population of this research is company of property sector, real estate, and building construction which listed in Indonesia Stock Exchange (BEI) year 2012-2017. The sample is determined by purposive sampling method, so that the sample of 37 property companies, real estate, and building construction are obtained. The data used in this research is secondary data. Technique of collecting data is done by documentation technique obtained through IDX official website: www.idx.co.id. Data analysis used is structural equation modeling (SEM) using SmartPLS software ver 3.2.7.The result of the research shows that (1) the executive character has a significant positive effect on the tax aggressiveness (2) the executive character has a significant positive effect on the tax aggressiveness through leverage (3) institutional ownership has a significant positive effect on tax aggressiveness (4) institutional ownership has a significant positive effect on tax aggressiveness through leverage.Keywords: tax aggressiveness, executive characteristics, institutional ownership, leverage

This study aims to analyze the effect of dividend policy, investment decisions, leverage, profitability, company size, liquidity, sales growth, institutional ownership, and activity ratio on firm value. This study uses a sample of all manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2023 period with 44 manufacturing sector companies as samples in this study. Through purposive sampling method and analyzed with multiple linear regression. The results showed that leverage, profitability, liquidity, and institutional ownership have a positive effect on firm value. The higher leverage shows that the company is able to manage debt effectively so it can attract shareholder attention. High profitability provides a positive signal to investors regarding the profits generated by the company. A high level of liquidity indicates that the company is able to finance its short-term debt so this may increase the value of the company. Institutional ownership that increases reflects the strict supervision of investors so it can prevent management's opportunistic behavior and increase firm value. On the other hand, dividend policy, investment decisions, firm size, sales growth, and activity ratio have no effect on firm value.

The study examines the impact of executive character, leverage, political connections, and profitability on tax avoidance moderated by institutional ownership in manufacturing companies listed on the Indonesian Stock Exchange (BEI) from 2017-2021. The study uses quantitative data, which is used to prove the cause-and-effect relationship between independent variables, namely, executive character, leverage, political connection and profitability to the dependent variable. The results support the efficient transaction hypothesis theory, which suggests that RPT is profitable but reduces corporate tax aggressiveness. Leverage and profitability are proven to have a significant influence on tax avoidance. Meanwhile, executive character and political connections are the opposite, namely they do not have a significant effect on tax avoidance. Debt levels and profits have an important role in tax avoidance. the existence of institutional ownership also does not have a significant impact on tax avoidance. Likewise, institutional ownership is unable to strengthen the relationship between executive character, political connections and profitability with tax avoidance. However, unlike leverage, institutional ownership is able to strengthen the relationship between leverage and tax avoidance. So it is clear that the level of debt certainly needs to be the main monitoring if the company is going to carry out tax avoidance. The findings provide valuable insights for companies looking to improve their tax preventive strategies.

This study aims to identify, analyze and determine the effect of managerial ownership and institutional ownership partially and simultaneously on the value of the company in manufacturing companies listed on the Indonesia stock exchange. The method used is quantitative. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2013 to 2016. The samples used in this study are manufacturing companies that have certain criteria. The sampling method is done by purposive sampling, which is based on certain criteria. The data analysis technique used is the classic assumption test (normality, multicollinearity, heterocedasticity, and autocorrelation), multiple linear regression, t test, F test and coefficient of determination. Based on multiple linear regression analysis of variable managerial ownership and institutional ownership of firm value obtained Y = 1,419 + 0,014 X1 +1,158 X2 + e. From the results of the t test performed, the sig value of the managerial ownership variable is 0.381> 0.05, it can be concluded that the managerial ownership variable (X1) does not have a significant effect on firm value. While the sig value of institutional ownership is 0,000 <0,05, it can be concluded that institutional ownership (X2) has a significant effect on firm value. From the results of the F test or the tests carried out simultaneously, the sig value is 0,000 <0,05, it can be concluded that management ownership (X1) and institutional ownership (X2) together have a significant effect on firm value, while the coefficient of determination obtained Adjusted R Square of 0.201. This means that the ability of managerial ownership and institutional ownership variables in explaining the dependent variable is equal to 20.1% and the remaining 79.9% is explained by other variables not discussed in this study.

Earning management is an implementation carried out by the company's management to carry out actions to manipulate financial statements in order to achieve certain targets. This study was conducted with the aim to find the effect of profitability, liquidity, company size, and institutional ownership on earning management. The population of this study is an industrial sector company listed on the Indonesia Stock Exchange for the period 2019-2022. Sampling techniques using purposive sampling and obtained by 19 companies. Data analysis using multiple linear regression. The results showed that profitability measured using Return on Assets has no effect on earning management, Net Profit Margin has an effect on earning management, Return on Equity has an effect on earning management. Liquidity as measured by The Current Ratio, Quick Ratio, and Cash Ratio does not affect earning management. The size of the company is measured by the natural logarithm of total assets resulting in the size of the company has an affects earning management. Institutional ownership is measured by the division between the ownership of the number of shares of the institution and the number of shares outstanding, resulting in that institutional ownership has no effect on earning management. High and low return on assets, liquidity, and institutional ownership have no effect on earning management. But the higher the value of net profit margin, return on equity, and company size in a company, the lower the value of earning management. Conversely, the lower the value of net profit margin, return on equity, and company size, the value of earning management value increases.

This study has provided empirical evidence where the corporate tax compliance does have a significant relationship with corporate governance mechanisms. The study covered the period of pre MCCG (Malaysian Code on Corporate Governance) revision (2005 to 2006) and post MCCG revision (2007 to 2008). The statistical results reveal that MCCG does influence a constructive impact on the level of corporate tax compliance in Malaysia. Although the efforts of establishing MCCG and strengthening the code by the MCCG revision in year 2007 was not embrace directly to increase the level of corporate tax compliance. But, this study has successfully provided empirical evidence where the corporate tax compliance does have a significant relationship with corporate governance mechanisms. The findings of this study will give another angle of deliberation to the corporate governance interests' as well as the corporate taxation.

The purpose of this study was to determine the effect of institutional ownership, firm size and earnings quality, either simultaneously or partially with respect to the issuer company in manufacturing in Indonesia Stock Exchange (IDX) with the observation period from 2006 to 2009. This type of study is a hypothesis testing study with a sample of purposive sampling method.Target population of this study is the issuer of manufacturing in Indonesia Stock Exchange (BEI), which has complete data related to institutional ownership, assets, receivables, liabilities, sales, net income and operating cash flow. The research sample consists of 149 observations. To test the effect of institutional ownership, firm size and earnings quality both simultaneously and partially on the company used multiple linear regression models.The results showed: (1) institutional ownership has a positive effect on firm value, but the effect is very small, (2) the size of the company's negative effect on the value of the firm and its influence is small, (3) a positive effect on earnings quality and firm value, (4) simultaneously institutional ownership, firm size and earnings quality significantly influence the value of the company.

This study examines the effect of good corporate governance attributes on the tax compliance behavior of listed firms in Nigeria from 2012-2016. 79 selected listed firms met the conditions for inclusion in the sample. Data for corporate governance attributes were extracted from the annual reports of the sample firms and those of the tax compliance indices were extracted from their files with the tax office. Based on the result of the Hausman test, the fixed-effect model was used as a basis for the discussion of findings. Findings suggest that managerial ownership and non-executive director have significant positive relationship with tax compliance. Board size has a negative relationship while the effects of gender diversity, auditor profile, ownership concentration, and institutional ownership are not significant. It is therefore recommended that firm should seek an optimal mix of managerial and non-managerial ownership to guarantee compliance.