Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing

The purpose of this study is to examine and evaluate the extent of the influence of institutional ownership and transfer pricing on tax avoidance practices in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. Tax avoidance is underst...

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Main Authors: Az-Zahra Putri Aulia, Ferdiansyah Ritonga
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-08-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7347
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author Az-Zahra Putri Aulia
Ferdiansyah Ritonga
author_facet Az-Zahra Putri Aulia
Ferdiansyah Ritonga
author_sort Az-Zahra Putri Aulia
collection DOAJ
description The purpose of this study is to examine and evaluate the extent of the influence of institutional ownership and transfer pricing on tax avoidance practices in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. Tax avoidance is understood as a legal strategy and is often applied by companies to reduce the tax burden by utilizing loopholes or weaknesses in the tax regulation system. This research approach is quantitative in nature by applying multiple linear regression analysis methods based on secondary data obtained from the company's annual financial statements. The sample selection was carried out using purposive sampling technique using certain criteria, which resulted in 45 companies as samples with a total of 225 observations. Measurement of tax avoidance variables is done using the Cash Effective Tax Rate (CETR) method. The research findings indicate that neither institutional ownership nor transfer pricing has a significant effect on tax avoidance, although the direction of the relationship shown is positive and requires further research.
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issn 2621-606X
language English
publishDate 2025-08-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
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series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-46e2c83732e84304a71f7fc24d1517cf2025-08-20T03:58:08ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-08-018310.31538/iijse.v8i3.7347Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer PricingAz-Zahra Putri Aulia0Ferdiansyah Ritonga1Sekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, IndonesiaSekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, Indonesia The purpose of this study is to examine and evaluate the extent of the influence of institutional ownership and transfer pricing on tax avoidance practices in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. Tax avoidance is understood as a legal strategy and is often applied by companies to reduce the tax burden by utilizing loopholes or weaknesses in the tax regulation system. This research approach is quantitative in nature by applying multiple linear regression analysis methods based on secondary data obtained from the company's annual financial statements. The sample selection was carried out using purposive sampling technique using certain criteria, which resulted in 45 companies as samples with a total of 225 observations. Measurement of tax avoidance variables is done using the Cash Effective Tax Rate (CETR) method. The research findings indicate that neither institutional ownership nor transfer pricing has a significant effect on tax avoidance, although the direction of the relationship shown is positive and requires further research. https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7347Tax AvoidanceInstitutional OwnershipCETRLiniear Regression
spellingShingle Az-Zahra Putri Aulia
Ferdiansyah Ritonga
Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing
Indonesian Interdisciplinary Journal of Sharia Economics
Tax Avoidance
Institutional Ownership
CETR
Liniear Regression
title Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing
title_full Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing
title_fullStr Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing
title_full_unstemmed Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing
title_short Tax Avoidance Tactics: Exploring the Interplay Between Institutional Ownership and Transfer Pricing
title_sort tax avoidance tactics exploring the interplay between institutional ownership and transfer pricing
topic Tax Avoidance
Institutional Ownership
CETR
Liniear Regression
url https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7347
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