Ownership Structure and Tax Aggressiveness of Tourism Companies in Indonesia

Abstract

Recognizing the negative implications of companies"s tax aggressiveness for government income, this study delves into the role of ownership structure on tax aggressiveness. Focusing on the tourism industry on the Indonesia Stock Exchange, we hand-collect data from annual reports for 2015-2021. Our study reveals mixed results regarding ownership structure and tax aggressiveness in Indonesian tourism companies. While both managerial and institutional ownership seems neutral, public ownership surprisingly boosts tax aggressiveness, but foreign ownership dampens it. Interestingly, these effects are not straightforward, as company size plays a role in moderating the impact of public and foreign ownership on tax strategies. Notably, these findings hold true even amidst the COVID-19 pandemic, suggesting that public and foreign shareholders have not shifted their stance on tax aggressiveness despite the economic downturn.