Research Article
Tax Amnesty as a Control Variable Affects The Relationship between Domestic Institutional Shareholders and the Firm Value.
@INPROCEEDINGS{10.4108/eai.20-6-2020.2300639, author={Muhammad Rifky Santoso and Azhar Maksum and Ramli Ramli and Rina Br. Bukit}, title={Tax Amnesty as a Control Variable Affects The Relationship between Domestic Institutional Shareholders and the Firm Value.}, proceedings={Proceedings of the 3rd International Conference on Advance \& Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia}, publisher={EAI}, proceedings_a={ICASI}, year={2020}, month={9}, keywords={domestic instituional shareholders tax amenesty control variable non-linear}, doi={10.4108/eai.20-6-2020.2300639} }- Muhammad Rifky Santoso
Azhar Maksum
Ramli Ramli
Rina Br. Bukit
Year: 2020
Tax Amnesty as a Control Variable Affects The Relationship between Domestic Institutional Shareholders and the Firm Value.
ICASI
EAI
DOI: 10.4108/eai.20-6-2020.2300639
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.
