Tax Amnesty as a Control Variable Affects The Relationship between Domestic Institutional Shareholders and the Firm Value.

Santoso, Muhammad Rifky and Maksum, Azhar and Ramli, Ramli and Br. Bukit, Rina Br. (2020) Tax Amnesty as a Control Variable Affects The Relationship between Domestic Institutional Shareholders and the Firm Value. In: ICASI 2020, 20 June 2020, Medan, Indonesia.

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Abstract

The number of shares owned by the domestic institutional shareholders influences the firm value. The next question is whether this relationship is linear or non-linear. When the tax amnesty policy enacted, management will adjust the strategies that influence on the firm value. The tax amnesty policy also influences the relationship between the domestic institutional shareholders and the firm value. By using the manufacturing firm listed in the Indonesia Stock Exchange, the comparative casual method, and the tax amnesty policy as a control variable, this study find out that the relationship between the domestic institutional shareholders and the firm value is non-linear and inverted U-shaped, both with and without the tax amnesty policy. When using the tax amnesty policy as a control variable, the relationship between the domestic institutional shareholders and the firm value is getting weaker. It is estimated that this weakening is a management reaction to the tax amnesty policy whose influence is more significant compared to the influence of the domestic institutional shareholders on the firm value.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: domestic instituional shareholders tax amenesty control variable non-linear
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 21 Apr 2021 09:51
Last Modified: 21 Apr 2021 09:51
URI: https://eprints.eudl.eu/id/eprint/2694

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