Ownership Structure, Tax Avoidance and Firm Performance
DOI:
https://doi.org/10.14738/abr.61.4011Abstract
The aims of this study was to obtain empirical evidence of how ownership structure ie institutional and managerial ownership affect firm performance. The study also examine the moderating role of tax avoidance on the effect of institutional and managerial ownerships on firm performance. A model was developed and tested using sample of 58 manufactured companies from 2012 to 2014, which is listed on Indonesian Stock Exchange. Data were collected and analyzed using least square regression and moderated regression analisys. The result showed that institutional ownership and managerial oenrrship affect firm performance. This study also showed that tax avoidance moderates the effect of both institutional and managerial ownership on firm performance.
Keywords: Institutional Ownership, managerial ownership, tax avoidance, firm performance
References
Allen, J.W dan Phillips, G.M, 2000. Corporate equity ownership, strategic alliances and product market relationships. Journal of Finance. Vol.55. hal.2791-2816.
Aina Qorri, 2016. Analysis of the effect of tax avoidance on corporate value with institutional ownership and transparency as moderating variables , Universitas Diponegoro.
Armstrong, Christopher,S., Wayne R.Guay., Yoseph P.Weber. 2010. The role of information and financial reporting in corporate governance and debt contracting. Journal of Accounting and Economics. 50:175-234.
Benson, Bradly.W and Wallace N. Davinson. (2008). Reexamining the Managerial Ownership Effect on Firm Value. Available on line at www.ssrn.com, diunduh 5 Maret 2013
The influence of managerial ownership on firm value with dividend policy Budianto, Wahyu dan Payamta.(2014). as moderating variables ASSETS : Jurnal Akuntansi dan Pendidikan, Vol.3, No.1, April 2014 .
Chen, Zhang, Cheong K.C, Rajah Rasiah. (2016). Corporate Tax Avoidance and Performance: Evidence from China’s Listed Companies. Institutions and Economies. Vo. 8 (3),pp.61-83
Cornett, Marcia Millon, Alan J. Marcus, & Hassan Tehranian (2008). Corporate governance and pay-forperformance: The impact of earnings management. Journal of Financial economics, 87 ,357–373
Darmawan, I Gede Hendy dan I Made Sukartha. 2014. The effect of corporate governance, Leverage, Return on assets, and firm size on tax avoidance. E-Jurnal Akuntansi Universitas Udayana. 9 (1) : 143-161.
Dechow, P.M., Sloan, R.G. & Sweeney, A.P. (1996). Causes and consequences to earnings manipulation: An analysis of firms subject to enforcement action by the SEC. Contemporary Accounting Research, 13,1-36.
Dewinta, Ida Ayu Rosa dan Putu Ery Setiawan. 2016. The inpact of firm size, firm age, profitability, leverage, and sales growth on Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 14 (3): 1584-1613
Dyreng, S., M. Hanlon and E. Maydew. 2008. Long run corporate tax avoidance. The Accounting Review 83: 61-82.
Gideon, Boediono. 2005. Earnings quality: The study of the effect of corporate governance mechanism and the impact of earnings management using path analysis. Simposium Nasional Akuntansi (SNA) VIII Solo.
Gillan, S.L., Starks, L.T., (2003). Corporate governance, corporate ownership, and the role of institutional investors: a global perspective. Journal of Applied Finance , 13(2), 4 –22
Gill, Amarjit. and Obradovich, John D. 2012. The impact of corporate governance and financial leverage on the value of American Firms. International Research Journal of Finance and Economics. 91
Gill, Amarjit. and Obradovich, John D. 2012. The impact of Ccrporate governance and financial leverage on the value of American Firms. International Research Journal of Finance and Economics. 91
Gozali, Imam. (2013). Application of multivariate analysis with IBM program, SPSS 21, update PLS regresi. Badan Penerbit Universitas Diponegoro, 7.
Hassan, Shehu Usman., Abubakar Abubakar. (2012). Corporate governance, earnings management, and Financial performance: A case of Nigerian manufacturing firms. American International Journal of Contemporary Research Herawaty,Vinola. 2008. The role of corporate governance practices as a oderating variable of the effect of earnings management on firm value. Jurnal Akuntansi dan Keuangan. 10(2): 97-108
Hanlon, M. & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics , 50, 127-178.
Hoque, Md Jahirul, Mohamad Zahid Hossain Bhuiyan, and Afzal. 2011. Tax avoidance crimes - A study on some corporate firms of Bangladesh
Jensen, Michael C. dan W.H. Meckling. (1976). Theory of the firm: Managerial behavior, agency cost and ownership structure. Journal of Financial Economics 3. hal. 305-360.
Kamardin, Hasnah. (2014). Managerial Ownership and Firm Performance: The Influence of Family Directors and Non-Family Directors .Ethics, Governance and Corporate Crime: Challenges and Consequences. 47-83
Kurniasih, Tommy dan Sari, Maria M. R. (2013). The effect of return on asset, leverage, corporate gorvenance, firm size and fiscal loss compensation on tax avoidance.Buletin Studi Ekonomi, Vol. 18: 58-66
Li,Dong Hui., Fariborz.M., Pascal Nguyen Li., Wen Tan (2007). Managerial ownership and firm performance: Evidence from China's privatizations. Research in International Business and Finance. Vol.21(3): 396-413
Mule, Robert Kisavi., Mohamed S.M., Onesmus,M. (2015). Corporate Size, Profitability and Market Value,:An Econometric Panel Analysis oo Listed Firms in Kenya. European Scientific Journal May 2015 edition vol.11, No.13 ISSN: 1857– 7881
Nuraina, Eva. (2012). The effect institutional ownership and firm size on debt policy and firm value (Study on manufactured company which is listed on Indonesian Stock Exchange). Jurnal Bisnis dan Ekonomi (JBE),9 (2) : 110–125
Maryam, Sitti. (2014). The analysis of the effect of firm size, growth, leverage, and profitability on firm value (Study on manufactured company which is listed on Indonesia Stock Exchange. Skripsi S1 Universitas
Mansor, N.A., Che-Ahmad., Ahmad-Zaluki, N.A., Osman, A. H. (2013). Corporate governance and earnings management: A study of the Malaysian family and non-family owned. International Conference on Economics and Business Research 2013 (ICEBR 2013).
Prasetyorini, Bhekti Fitri. (2013). The effect of firm size, leverage, price earning ratio and Profitability on firm value. Jurnal Ilmu Manajemen, 1(1), h: 183-196.
Praditasari, Ni Koming Ayu., Putu Ery Setiawan. (2017). The effect of good corporate governace, firm size, leverage, and profitability on firm size. E Jurnal Akuntansi Universitas Udayana. 19(2):1229-1258
Pratama, I Gusti bagus Angga, I Gusti Bagus Wiksuana. (2016). The effect of firm size and leverage on firm value with profitability as a mediating variable. E- Jurnal Manajemen UNUD, 5 (2):1338-1367
Ratnawati, Vince., & M. A. Abdul Hamid. (2015). The moderating effect of managerial ownership and institutional ownership on the relationship between control right and earnings management. Australian Academy of Accounting and Finance Review, 1 (1), 69-85
Ruan, Wenjuan; Tian, Gary; and Ma, Shiguang, Managerial Ownership, Capital Structure and Firm Value: Evidence from China’s Civilian-run Firms, Australasian Accounting , Business and Finance Journal, 5(3), 2011, 73-92.
Saifudin., Derik Yuanda. (2016.) Determinant of return on asset, leverage, firm size, fiscall loss compensation and institutional ownership on tax avoidance (Empirical study on manufactured company which listed on Indonesian Stock Exchange from 2011 - 2014). . 6 (2); 131 –
Santa, Silvio Luis Leite, Amaury José Rezende. (2016). Corporate tax avoidance and firm value: from Brazil Florianopolis, v. 13, n. 30, p. 114-133
Scott D. Dyreng, Michelle Hanlon, and Edward L. Maydew (2008) Long-Run Corporate Tax Avoidance. The Accounting Review: January 2008, Vol. 83, No. 1, pp. 61-82.
Shahira, A. S. (2003). Does ownership structure affect firm value? Evidence from the Egyptian Stock Market. Unpublished Working Paper.
Slemrod, Joel., Shlomo Yitzhaki. (2002). Tax avoidance, evasion, and administration. Handook of Public Economics, 3; 1423-1470 from Elsevier
Sudianto, Bambang., Elen Puspitasari. (2010). Tobin’s Q and Alman- Z Score as the indicator of firm performance measuremet. Kajian Akuntansi,2: 9-21
Swingly, Calvin., I MadeSukarta. (2015). The effect of executive characters, audit committee firm size, leverage, and sales growth on tax avoidance. E Jurnal Universitas Udayana, 10(1) ; 47-62
Wahyudi dan Perwestri, Hartini.P. (2006). The implication of ownership structures on firm value, financial decision as a intervening variable.SNA IX : Ikantan Akuntan Indonesia
Wida,Ni Putu., I Wayan Suartana. (2014). The effect of managerial ownership and institutional ownership on firm value. E-Jurnal Akuntansi Udayana 9(3): 575-590
Winata, Fenny. (2014). The effect of corporate governance on Tax Avoidance of manufactured company which is listing on Indonesian stock Exchange 2013. Tax & Accounting Review,Vol 4 (No. I), hal 1-11.
Xudong Chen, Na Hu, Xue Wang, Xiaofei Tang, (2014) "Tax avoidance and firm value: evidence from China", Nankai Business Review International, Vol. 5 Issue: 1, pp.25-42, https://doi.org/10.1108/NBRI-10-2013-0037
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2018 Archives of Business Research
This work is licensed under a Creative Commons Attribution 4.0 International License.
