The effect of Institutional Ownership, Sales Growth and Profitability on Tax Avoidance

ABSTRACT: This research aims to test, analyze and obtain empirical evidence about the influence of institutional ownership, sales growth and profitability on tax avoidance. The object of this research is manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (BEI) in 2018-2022. This research used quantitative research methods and causal research design. The sampling technique in this research used non-probability sampling with purposive sampling as the basis for determining the sample so that a sample of 55 samples was obtained. The data used is secondary data obtained from the official website of the Indonesia Stock Exchange (BEI) during the 2018-2022 period. The data analysis method used was multiple linear regression analysis with several tests such as descriptive statistical tests, classical assumption tests, and hypothesis testing using SPSS version 26 statistical software. The results showed that the institutional ownership variable has no effect on tax avoidance, while the sales growth and profitability has a negative and significant effect on tax avoidance.

KEYWORDS: Institutional Ownership, Sales Growth, Profitability, Tax Avoidance