Ownership Structure, Capital Intensity, and Tax Avoidance: Evidence from Mining Companies Listed on The Indonesia Stock Exchange

Syafwan Nor, Tina Lestari, Fakhri Fakhri and Dwi Rochmawati ()
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Syafwan Nor: Pancasetia School of Economics
Tina Lestari: Pancasetia School of Economics
Fakhri Fakhri: Pancasetia School of Economics
Dwi Rochmawati: Pancasetia School of Economics

A chapter in Proceedings of the International Conference on Contemporary Risk Studies (ICONIC-RS 2025), 2026, pp 241-253 from Springer

Abstract: Abstract This study examines the effect of ownership structure managerial, in stitutional, and foreign ownership and capital intensity on tax avoidance among mining companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. While prior studies provide mixed evidence on the owner ship–tax avoidance relationship, empirical research focusing on capital-intensive extractive industries in emerging markets remains limited. Using a quantitative approach and panel data regression analysis, this study analyzes firm-level financial data to test the proposed hypotheses. The results indicate that ownership structure and capital intensity jointly have a significant effect on the effective tax rate (ETR). Partially, managerial ownership does not significantly affect tax avoidance, suggesting limited alignment incentives due to low managerial share holdings. In contrast, institutional ownership, foreign ownership, and capital intensity exhibit significant negative effects on ETR, indicating a higher propensity for tax avoidance. Institutional ownership emerges as the most dominant determinant. These findings highlight the importance of ownership configuration and investment structure in shaping corporate tax behavior and provide policy-relevant implications for strengthening tax governance and regulatory oversight in capital-intensive industries.

Keywords: Managerial Ownership; Institutional Ownership; Foreign Owner ship; Capital Intensity; Tax Avoidance; Effective Tax Rate (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-2-38476-595-9_19

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