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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 21 March 2019

The Effect of Family Ownership to Tax Aggressiveness with Good Corporate Governance and Transparency as Moderating Variable

Retnaningtyas Widuri, Yo’elin Anugrah, Yumico, Celine Laurentia

Petra Christian University, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.02.01.76

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Abstract

This research was conducted to determine the effect of family ownership structure on aggressive tax aggressiveness and to determine the effect of good corporate governance and transparency on family ownership that conduct tax aggressiveness. This study uses family ownership as an independent variable measured by the proportion of shares held by family members from the total number of shares outstanding. Good Corporate Governance variable uses several sub-variables, namely: (1) executive compensation, (2) executive character, (3) size, (4), institutional ownership, (5) proportion of BOC, and (6) audit committee. The results showed that there was no effect of family ownership structure on aggressive tax aggressiveness, with a significant value of less than 0.05. The existence of good corporate governance can reduce the likelihood of family companies conducting tax aggressiveness through executive compensation and executive character, while the audit committee, institutional ownership, and proportion of BOC may not necessarily reduce the possibility of family companies conducting tax aggressiveness. Similarly, transparency which also does not necessarily reduce the likelihood of family companies conducting tax aggressiveness.

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