The Effect of Executive Compensation, Capital Intensity, Institutional Ownership, and Family Ownership on Tax Avoidance with Audit Quality as a Moderating Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange of 2016-2020

Abstract

This study aims to determine whether executive compensation, capital intensity, institutional ownership, and family ownership affect tax avoidance. This study also aims to determine whether audit quality as a moderating variable can moderate the relationship between executive compensation, capital intensity, institutional ownership, and family ownership on tax avoidance. The population used in this study were all manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period. Sample selection was made by using the purposive sampling method. The number of samples in this study was 12 companies, so 60 research observations could be obtained. Data processing was carried out using the R Studio program. The results showed that: (1) Capital intensity has a partially positive and significant effect on tax avoidance, (2) Partial family ownership has a negative and significant effect on tax avoidance, and (3) Executive compensation and institutional ownership partially have no significant effect on tax avoidance, (4) audit quality is partially able to moderate the relationship between capital intensity and tax avoidance, but partially audit quality is unable to moderate the relationship between executive compensation, institutional ownership and family ownership on tax avoidance. Keywords: Executive Compensation, Capital Intensity, Institutional Ownership, Family Ownership, Tax Avoidance, Audit Quality.