Pengaruh Tax Haven Utilization, Substantial Foreign Ownership, Audit Committee Size, Multinationality, dan Withholding Taxes Terhadap Praktik Thin Capitalization pada Perusahaan Multinasional yang Terdaftar di Bursa Efek Indonesia (Bei) Periode 2017-2021

Abstract

This research aims to obtain empirical evidence regarding the influence of Tax Haven Utilization, Substantial Foreign Ownership, Audit Committee Size, Multinationality, and Withholding Taxes on Thin Capitalization practices in Multinational Companies listed on the Indonesia Stock Exchange (BEI) for the 2017-2021 period. Thin capitalization is a company that is financed with a large amount of debt compared to its equity. Thin capitalization uses the debt to equity ratio. This type of research is quantitative research. The sampling method used in this research was a purposive sampling method so that 48 companies that passed the criteria were obtained with 240 observations. The results of this research prove that Tax Haven Utilization has a significant positive effect on Thin Capitalization Practices, Substantial Foreign Ownership has a significant positive effect on Thin Capitalization Practices, Audit Committee Size has an insignificant negative effect on Thin Capitalization Practices, Multinationality has no significant effect on Thin Capitalization Practices, and Withholding Taxes do not have a significant effect on Thin Capitalization Practices. This research also proves that Tax Haven Utilization, Substantial Foreign Ownership, Audit Committee Size, Multinationality, and Withholding Taxes simultaneously have a significant influence on Thin Capitalization Practices in multinational companies listed on the Indonesia Stock Exchange in 2017 – 2021.