Year: 2026 | Month: May | Volume: 13 | Issue: 5 | Pages: 757-774
DOI: https://doi.org/10.52403/ijrr.20260575
The Effect of Transfer Pricing, Thin Capitalization, and Institutional Ownership on Tax Avoidance Moderated by Corporate Social Responsibility (CSR) in Plantation Sub-Sector Companies Listed on The Indonesia Stock Exchange for the 2020-2024 Period
Indra Sahputra1, Erlina2, Yeni Absah3
1Master of Accounting Student, 2,3Master of Accounting Lecturer,
1,2,3Univesity of Sumatera Utara, Indonesia
Corresponding Author: Indra Sahputra
ABSTRACT
This study aims to analyze the effects of transfer pricing, thin capitalization, and institutional ownership on tax avoidance, with Corporate Social Responsibility (CSR) as a moderating variable, among companies in the plantation subsector listed on the Indonesia Stock Exchange during the 2020–2024 period. The background of this study is based on Indonesia’s still-low tax ratio, which indicates the potential for tax avoidance by companies, particularly through financial strategies and corporate governance.
This study employs a quantitative approach using secondary data obtained from companies’ annual reports and sustainability reports. The study population consists of plantation sub-sector companies listed on the Indonesia Stock Exchange for the 2020–2024 period. The sample was selected using purposive sampling, resulting in 19 companies with a total of 95 panel data observations. The analysis techniques used include panel data regression and Moderated Regression Analysis (MRA) with the assistance of EViews 13 software.
The results of the study indicate that transfer pricing has a positive and significant effect on tax avoidance, whereas thin capitalization does not have a significant effect on tax avoidance. Institutional ownership has a negative and significant effect on tax avoidance. Furthermore, Corporate Social Responsibility (CSR) was found to mitigate the effects of transfer pricing and thin capitalization on tax avoidance, but it does not moderate the effect of institutional ownership on tax avoidance.
Keywords: tax avoidance, transfer pricing, thin capitalization, institutional ownership, corporate social responsibility (CSR).
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