PENGARUH GOOD CORPORATE GOVERNANCE, LEVERAGE DAN PERTUMBUHAN PENJUALAN TERHADAP PRAKTIK TAX AVOIDANCE

Abstract

This research aimed to find out the effect of institutional ownership, leverage, and sales growth on tax avoidance. While, the population was Food and Beverages companies which were listed on Indonesia Stock Exchage during 2014-2019. The research was quantitative. Moreover, the data collction technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 14 companies as the sample. Furthermore, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 20.0. The research result, partially, concluded that sales growth affected tas avoidance. It meant, the higher the profit sales was, the higher the tax payable would be. Therefore, companies had tax avoidable in order to have lower cost. On the other hand, institutional ownership did not affect tax avoidance as its ownership had a lack function as action control of companies‘management. Likewise, leverage did not affect tax avoidance since management wa still conservative in having financial report for companies’ operations. In additional, companies which had higher debt would have tax incentives in the form of discounts for loan interest.
Keyword: institutional ownership, leverage, sales growht, tax avoidance