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

DOI

10.2991/978-2-38476-595-9_19How to use a DOI?

Keywords

Managerial Ownership; Institutional Ownership; Foreign Owner ship; Capital Intensity; Tax Avoidance; Effective Tax Rate

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.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Syafwan Nor
AU  - Tina Lestari
AU  - Fakhri Fakhri
AU  - Dwi Rochmawati
PY  - 2026
DA  - 2026/07/08
TI  - Ownership Structure, Capital Intensity, and Tax Avoidance: Evidence from Mining Companies Listed on The Indonesia Stock Exchange
BT  - Proceedings of the  International Conference on Contemporary Risk Studies (ICONIC-RS 2025)
PB  - Atlantis Press
SP  - 241
EP  - 253
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-595-9_19
DO  - 10.2991/978-2-38476-595-9_19
ID  - Nor2026
ER  -