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Determining Factors of Thin Capitalization Practices in Indonesia

Safrudin, Jepri Duwi and Suryaningrum, Diah Hari (2020) Determining Factors of Thin Capitalization Practices in Indonesia. In: The 2nd International Conference on Business and Banking Innovations (ICOBBI) 2020, 14 - 15 Agustus 2020, STIE Perbanas Surabaya.

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Abstract

This study aims to obtain empirical evidence of the influence of multinationality, tax haven utilization, tax uncertainty, executive character, institutional Ownership, independent commissioners, audit committees, and audit quality on thin capitalization. The population in this study is multinational companies listed on the Indonesia Stock Exchange (IDX) for the period 2016-2018. Sample selection using purpoive sampling and obtained a sample of 63 companies. Data analysis techniques are multiple linear regression. The results showed that multinationality, utilization of tax havens, tax uncertainty, independent commissioners, and audit quality influenced thin capitalization. Meanwhile, the executive character, institutional Ownership, and audit committee do not affect thin capitalization. The implication is to tighten the supervision of corporate debt by the Government and maximize the implementation of good corporate governance by companies to prevent the practice of thin capitalization.

Item Type: Conference or Workshop Item (Paper)
Subjects: 600 - TECHNOLOGY > 657 - ACCOUNTING > 657.45 - AUDITING
Divisions: ICOBBI (International Conference of Business and Banking Innovations)
Depositing User: Perpustakaan Universitas Hayam Wuruk Perbanas Surabaya
Date Deposited: 14 Oct 2020 03:01
Last Modified: 20 Oct 2020 04:49
URI: http://eprints.perbanas.ac.id/id/eprint/6207

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