THIN CAPITALIZATION, SALES GROWTH, CAPITAL INTENSITY ON TAX AVOIDANCE: INSTITUTIONAL OWNERSHIP PERSPECTIVE AS MODERATION
Downloads
Objective: Objective: This study aims to examine the effect of thin capitalization, sales growth, and capital intensity on tax avoidance with institutional ownership as a moderating variable. Method: This type of research is quantitative research. The population in this study were food and beverage sub-sector manufacturing companies listed on the IDX in 2023 - 2025. The sample obtained were 105 companies using purposive sampling techniques. The data analysis technique in this study uses software (SPSS) Statistics version 26. Results: The results show that thin capitalization and sales growth have an effect on tax avoidance, while capital intensity has no effect on tax avoidance. Novelty: Institutional ownership is able to moderate the influence of thin capitalization and sales growth on tax avoidance, while institutional ownership is unable to moderate the influence of capital intensity on tax avoidance.
R. Lutfian, GN Ahmad and D. Kurnianti, “Determinants of Tax Avoidance Practices: Cases of Food and Beverage Companies in Indonesia, Malaysia, Thailand and the Philippines,” Journal of Business, Management,and Finance,p. 21, 2021.
A. Nadila and AD Silalahi, “Determinants of Corporate Management Motivation in Conducting Tax Planning,” Journal of Business and Economics Research (JBE), Vol.%1 of %2Vol 3, No 2, June 2025, pp. 134−145, p. 12, 2025.
NA Yuliana, T. Nuryati, E. Rossa and NM Machdar, “The Effect of Tax Planning, Deferred Tax Expenses, and Tax Avoidance on Earnings Management,” Sinomika Journal, vol. 2, no. 1, pp. 55 - 64, 2023.
R. Purbowati, “The Effect of Good Corporate Governance on Tax Avoidance,” Dewantara Accounting and Finance Research Journal, vol. 4, no. 1, pp. 61 - 76, 2021.
A. GAZALI, H. KARAMOY and H. GAMALIEL, “The Effect of Leverage, Institutional Ownership and Operating Cash Flow on Tax Avoidance in Mining Companies Listed on the Indonesia Stock Exchange for the Period 2014-2019,” Journal of Accounting and Auditing Research “GOODWILL”, vol. 11, no. 2, pp. 83- 96, 2023.
DE Marlinda, KH Titisari and E. Masitoh, “The Effect of GCG, Profitability, Capital Intensity, and Company Size on Tax Avoidance,” Ekonomis: Journal of Economics and Business, vol. IV, pp. 39-47, 2023.
MI Nugraha and SD Mulyani, “The Role of Leverage as a Mediator of the Influence of Executive Character, Executive Compensation, Capital Intensity, and Sales Growth on Tax Avoidance,” Trisakti Accounting Journal, vol. IV, no. 2, pp. 301-324, 2019.
Y. Devi, GU Saefurrohman, W. Rosilawati, ZR Utamie and N. , “Analysis of the Causes of Tax Avoidance in Financial Reports of Companies Listed on the IDX in 2016-2019,” Journal of Accounting and Taxation, Vol. %1 of %2-, no. -, p. 6, 2025.
S. selistiaweni, D. Arieftiara and S. , “The Effect of Family Ownership, Financial Distress and Thin Capitalization on Tax Avoidance,” Business Management, Economic, and Accounting National Seminar, vol. 1, no. -, p. 13, 2023.
MF Utami and F. Irawan, “The Effect of Thin Capitalization and Transfer Pricing Aggressiveness on Tax Avoidance with Financial Constraints as Moderation Variables,” Owner: Research & Accounting Journal, vol. 6, no. -, p. 14, 2025.
TTF Ari and E. Sudjawoto, “The Effect of Financial Distress and Sales Growth on Tax Avoidance,” Journal of Administration and Business, vol. 15, no. 2, p. 7, 2021.
RF Sjahril, INP Yasa and GAKR Dewi, “Analysis of Factors Affecting Effective Tax Rates on Corporate Taxpayers (Study of Real Estate & Property Companies Listed on the Indonesia Stock Exchange for the Period 2016-2018),” JIMAT (Scientific Journal of Accounting Students) Ganesha University of Education, vol. 11, no. 1, pp. 56-65, 2023.
MA Ashari, P. Simorangkir and M. , “The Effect of Sales Growth, Institutional Ownership and Managerial Ownership on Tax Avoidance,” Jurnal Syntax Transformation, vol. I, no. 8, pp. 2721-2769, 2023.
A. Andawiyah, A. Subeki and A. Hakiki, “The Effect of Thin Capitalization on Tax Avoidance of Indonesian Sharia Stock Index Companies,” Accountability: Journal of Accounting Research and Development, vol. 13, pp. 1-16, 2019.
M. Sueb, “Tax Avoidance: Thin Capitalization and Asset Mix,” JIAFE (Journal o Accounting, Faculty of Economics), vol. 6, pp. 41-52, 2023.
RK Sari, DS Abbas, I. Hidayat and D. Rahandri, “The Influence of Thin Capitalization, Executive Character, CSR and Profitability on Tax Avoidanc Actions,” Journal of Management and Accounting Students, pp. 1-15, 2025.
A. Prayoga, M. Neldi and DP Sari, “The Effect of Thin Capitalization, Transfe Pricing and Capital Intensity on Tax Avoidance in Manufacturing Companies,” Journal of Business and Economics (JBE), vol. 4, no. 1, pp. 20-25, 2019.
L. Ziliwu and A. , “The Effect of Company Age and Sales Growth on Ta Avoidance,” Jurnal Disrupti Bisnis, vol. 4, no. 5, pp. 426-438, 2021
SM Ainniyya, A. Sumiati and S. Susanti, “The Effect of Leverage, Sales Growth, and Company Size on Tax Avoidance,” Owner: Research & Accounting Journal, vol. 5, no. 2, pp. -, 2021.
NMD Payanti and IK Jati, “The Effect of Corporate Social Responsibility Disclosure, Good Corporate Governance and Sales Growth on Tax Avoidance,” e-Jurnal Akuntansi, vol. 30, no. 5, pp. 1066-1083, 2023.
IS Maulana and M. , “The Influence of Independent Commissioners, Audit Committee, Leverage, Profitability, and Sales Growth on Tax Avoidance,” senapan.upnjatim.ac.id, vol. 1, no. 1, p. 601–615, 2021.
R. Sinaga and H. Malau, “The Effect of Capital Intensity and Inventory Intensity on Tax Avoidance (Case Study of Chemical Sub-Sector Companies Listed on the IDX for the 2017-2019 Period),” Scientific Journal of Management, Business and Accounting Students, vol. 3, no. 3, pp. 311 - 322, 2021.
AA Al Hasyim, NI Inayati, A. Kusbandiyah and T. Pandansari, “The Effect of Transfer Pricing, Foreign Ownership, and Capital Intensity on Tax Avoidance,” Journal of Accounting and Taxation, Vol. %1 of %2-, no. -, pp. 1-12, 2025.
F. and S., “The Effect of Capital Intensity, Inventory Intensity, Profitability and Ownership Structure on Tax Avoidance in Manufacturing Companies,” Scientific Conference on Accounting, vol. 9, no. 1, pp. 144-160, 2025.
MKY Zoebar and D. Miftah, “The Influence of Corporate Social Responsibility, Capital Intensity and Audit Quality on Tax Avoidance,” Trisakti Accounting Masters Journal, vol. VII, no. 1, pp. 25 - 40, 2023.
AZ Cahyani, S. Djaddang and M. Sihite, “Factors Affecting Tax Avoidance with Institutional Ownership as a Moderating Variable,” Jurnal KRISNA: Kumpulan Riset AkuntansI, vol. 13, no. 1, pp. 122-135, 2021.
M. Abdurrosyid and MA Damayanti, “Institutional Ownership as Moderation: Earnings Management, Financial Distress, Sales Growth Against Tax Avoidance Practices,” AKRUAL Journal of Accounting and Finance, vol. 5, no. 1, pp. 36 - 46, 2023.
AD Wahyuni and M. , “The Effect of Sales Growth and Capital Intensity on Tax Avoidance with Institutional Ownership as a Moderating Variable in Raw Material Sector Companies Listed on the Indonesia Stock Exchange for the Period 2018-2021,” Inisiatif: Journal of Economics, Accounting and Management, vol. 2, no. 4, pp. 293- 309, 2023.
C. Tanjaya and N. Nazir, “The Effect of Profitability, Leverage, Sales Growth, and Company Size on Tax Avoidance,” Trisakti Accounting Journal, vol. 8, no. 2, pp. 189-208, 2021.
D. Kurniawati and AH Mukti, “The Effect of Thin Capitalization, Capital Intensity on Tax Avoidance with Institutional Ownership as a Moderating Variable,” Jurnal Akuntansi Edukasi Nusantara ICMA, vol. 1, no. 1, pp. 44 - 50, 2023.
I. Natalia and F. Widyadhana, “Thin capitalization and tax avoidance after the implementation of PMK 169,” Sustainability: Journal of Management and Journal, vol. 6, no. 2, pp. 106-115, 2021.
SS DARMA, “The Effect of Related Party Transaction and Thin Capitalization on Tax Avoidance Strategy,” Accounting Scientific Journal of Pamulang University, vol. 7, no. 1, pp. 58-75, 2019.
L. Febriana and AI Kesuma, “The Effect of Executive Risk Preferences, Tax Incentives, and Thin Capitalization on Tax Avoidance,” Jurnal Pustaka Aktiva, vol. 3, pp. 1-6, 2023.
N. GOUWVARA and M. SUSANTY, “The Effect of Thin Capitalization and Other Factors on Tax Avoidance,” TSM ACCOUNTING E-JOURNAL, vol. 3, no. 2, p. 291–304, 2023.
NB Anggara and K. , “The Effect of Thin Capitalization and Executive Character on Tax Avoidance,” Journal of Accounting Information, vol. 2, no. 1, pp. 31-38, 2023.
RY Azlia, “The Effect of Liquidity, Profitability and Thin Capitalization on Tax Avoidance,” JIIP (Scientific Journal of Educational Sciences), vol. 6, no. 8, pp. 5974- 5981, 2023.
IAMW Ningsih and N. Noviari, “Financial Distress, Sales Growth, Profitability and Tax Avoidance,” E-Journal of Accounting, vol. 32, no. 1, pp. 229-244, 2021.
D. Marta and N. Nofryanti, “The Effect of Capital Intensity, Sales Growth and Company Size on Tax Avoidance Capital, Sales Growth and Company Size,” Journal of Accounting and Finance (JAK), vol. 28, no. 1, pp. 55-65, 2023.
Z. “The Effect of Company Size, Inventory Turnover, Sales Growth and Capital Intensity on Tax Avoidance in Food & Beverage Manufacturing Companies on the Indonesia Stock Exchange (BEI) in 2014-2018,” 2023.
L. Tantika, NI Lubis and E. Masyitah, “The Effect of Capital Intensity, Inventory Intensity, Sales Growth, and Leverage on Tax Avoidance in Retail Trade Sub-Sector Companies Listed on the IDX in 2018-2020,” MAIBIE Journal (Management, Accounting, Islamic Banking and Islamic Economic, vol. 1, no. 1, pp. 161-179, 2023.
I. Febriyan and P. Kalao, “The Effect of Sales Growth, Leverage, and Managerial Ownership on Tax Avoidance Practices,” Journal of UKMC National Seminar on Accounting Proceeding, vol. 2, no. 1, pp. 318 - 327, 2023.
HH Sudibyo, “The Effect of Profitability, Leverage, and Sales Growth on Tax Avoidance,” Jurnal jaman, vol. 2, no. 1, pp. 78-85, 2025.
MKI Yulianto and SD Nur, “Corporate Governance, Profitability and Capital Intensity Against Tax Avoidance,” Journal of Logistics and Supply Chain Business, vol. 2, no. 1, pp. 17 - 24, 2025.
PAN Fajarwati and W. Ramadhanti, “The Effect of Accounting Information (ROA, Leverage, Sales Growth, Capital Intensity and Company Size) and Company Age on Tax Avoidance,” Jurnal Investasi, vol. 7, no. 1, pp. 1-15, 2021.
AB Muslim, DS Wulandari and E. Firmansyah, “Analysis of Aspects Affecting Tax Avoidance with Parameters of Company Size, Leverage, Capital Intensity, Independent Commissioners and Audit Committee,” Journal of Trends Economics and Accounting Research, vol. 3, no. 4, p. 529−540, 2023.
MA Dewi, D. Edriani, S. Bangun and PW Hasibuan, “The Role of CSR in Moderating the Relationship between Capital Intensity, Institutional Ownership, and Company Size with Tax Avoidance,” Owner: Research & Accounting Journal, vol. 7, no. 1, pp. 131-140, 2023.
SDN Putri and T. Aryati, “The Effect of Institutional Ownership, Capital Intensity and Executive Character on Tax Avoidance with Political Connections as Moderation in Manufacturing Companies,” Trisakt Economic Journal, vol. 3, no. 1, pp. 1573-1582, 2023.
AA Rahma, N. Pratiwi, H. Mary and I. , “The Effect of Capital Intensity, Company Characteristics, and CSR Disclosure on Tax Avoidance in Manufacturing Companies,” Owner: Research & Accounting Journal, vol. 6, no. 1, pp. 677 - 689, 2025.
H. Fadillah, “The Effect of Tax Avoidance on Company Value with Institutional Ownership as a Moderating Variable,” JIAFE (Scientific Journal of Accounting, Faculty of Economics), vol. 4, no. 1, pp. 117-133, 2019.
YN Afifah and D. Prastiwi, “The Effect of Independent Board of Commissioners, Audit Committee, and Institutional Ownership on Tax Aggressiveness,” Journal of Accounting and Finance Research, vol. 9, no. 1, pp. 141-148, 2021.
HNH Auliya, H. Andriani, RA Fardani, J. Ustiawaty, EF Utami, DJ Sukmana and RR Istiqomah, Qualitative & Quantitative Research Methods, Yogyakarta: CV. Pustaka Ilmu, 202.
A. Veronica, ERM Abas, YHN Hidayah, J. Sabtohad, H. Marlina, W. Mulyani and Z. , Quantitative Research Methodology, West Sumatra: PT. Global Executive Technology, 2025.
GO Lucky and M. , “The Effect of Thin Capitalization and Capital Intensity with Institutional Ownership as a Moderating Variable on Tax Avoidance,” Journal of Research and Community Service, vol. 2, no. 4, pp. 950-965, 2025.
WR Muhardi, Analysis of Financial Reports, Stock Projections and Valuation, Jakarta: Salemba Empat, 2015.
M. Aprianto and S.The Two-Face, “The Effect of Sales Growth and Leverage on Tax Avoidance with Institutional Ownership as a Moderating Variable,” Proceedings of the 2nd National Expert Seminar 2019, vol. 2, 2019.
SL Dewi and RM Oktaviani, “The Effect of Leverage, Capital Intensity, Independent Commissioners and Institutional Ownership on Tax Avoidance,” Journal of Accounting and Finance Studies, vol. 4, no. 2, pp. 79 - 194, 2021.
RS Parmananda and E. Maryanti, “The Effect of Overvalued Equity, Earning Management, Operational Cash Flow Volatility on Earnings Quality with Good Corporate Governance as a Moderating Variable,” Archice Umsida, pp. 1 - 15, 2023.
DR Sumekar, S. Mulyani and S. Nuridah, “Analysis of the Influence of Thin Capitalization, Audit Committee and Institutional Ownership on Tax Avoidance in Financial Sector Companies on the Indonesia Stock Exchange in 2023-2025,” Journal Of Social Science Research, vol. 3, no. V, pp. 4533 - 4541, 2023.
MM and M. Su'un, “The Effect of Institutional Ownership, Independent Commissioners, Leverage and Sales Growth on Tax Avoidance in Manufacturing Companies on the Indonesia Stock Exchange,” SiMAk, vol. 16, no. II, pp. 142-165, 2018.
MQ Mahdiana and MN Amin, “The Effect of Profitability, Leverage, Company Size, and Sales Growth on Tax Avoidance,” Trisakti Accounting Journal, vol. 7, no. 1, pp. 127-138, 2023.
J. Jusman and F. Nosita, “The Influence of Corporate Governance, Capital Intensity and Profitability on Tax Avoidance in the Mining Sector,” Scientific Journal of Batanghari University, Jambi, pp. 697-704, 2023
V. Jumailah, “The Effect of Thin Capitalization and Accounting Conservatism on Tax Avoidance with Institutional Ownership as a Moderatin Variable,” Management & Accounting Expose, vol. 3, no. 1, pp. 13-21, 2023.
N. Safitri and TW Damayanti, “Sales Growth and Tax Avoidance with Institutional Ownership as a Moderating Variable,” Accounting Perspectives, vol. 2, no. 1, pp. 175-216, 2021.
L. Ristanti, “Corporate Social Responsibility, Capital Intensity, Audit Quality and Tax Avoidance: Institutional Ownership as a Moderating Variable,” LITERA: Jurnal Literasi Akuntansi, pp. 51 - 62, 2025.
P. Adelia, AN Hanum and I. Kristiana, “The Effect of Profitability, Leverage and Capital Intensity on Tax Avoidance with Institutional Ownership as a Moderator,” Proceedings of the UNIMUS National Seminar, vol. 6, pp. 228-242, 2023.
Copyright (c) 2025 Putri Anarkie, Herman Ernandi, Diana Retno Furi, Feny Sabella Efendi
This work is licensed under a Creative Commons Attribution 4.0 International License.
