The Effect of Capital Intensity, Executive Compensation, and Institutional Ownership on Tax Avoidance in Companies Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.24256/kharaj.v8i3.12541Keywords:
Capital Intensity, Executive Compensation, Institutional Ownership, Tax Avoidanace, Effective Tax Rate.Abstract
Objective: This study investigates whether capital intensity, executive compensation, and institutional ownership are associated with tax avoidance among firms in the Construction Machinery & Heavy Vehicles subsector listed on the Indonesia Stock Exchange (IDX) during 2022–2025. Methods: A quantitative associative design was applied. Purposive sampling produced 8 eligible companies and 32 company-year observations. Tax avoidance was represented by the Effective Tax Rate (ETR), and the data were examined through multiple linear regression. Results: Capital intensity and institutional ownership show significant relationships with tax avoidance, while executive compensation does not reach statistical significance. When considered jointly, the three explanatory variables significantly affect tax avoidance. Implications: The evidence suggests that asset composition and ownership structure are relevant to corporate tax-management behavior in this subsector.
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