Capital Intensity, Thin Capitalization, and Accounting Conservatism Effects on Tax Avoidance with Institutional Ownership as Moderator

Concerns surrounding tax avoidance persist because the practice can erode government tax receipts and, in turn, affect the resources available for sustainable economic development. This research investigates whether capital intensity, thin capitalization, and accounting conservatism are associated with tax avoidance and whether institutional ownership changes those relationships. The analysis covers infrastructure firms listed on the Indonesia Stock Exchange for the 2020–2024 period. The study responds to mixed results in earlier research and to the limited evidence on the moderating function of institutional ownership within Indonesian infrastructure companies. A quantitative approach was applied to secondary information obtained from annual reports and financial statements. Purposive sampling produced 161 firm-year observations. The hypotheses were examined using multiple linear regression and Moderated Regression Analysis (MRA) in IBM SPSS Statistics. The findings show a negative effect of capital intensity on tax avoidance and a positive effect of thin capitalization, whereas accounting conservatism has no significant effect. Institutional ownership strengthens the effect of capital intensity, but weakens the effects of thin capitalization and accounting conservatism on tax avoidance. These results underline the relevance of institutional oversight for corporate tax governance and compliance.

Tax Avoidance, Capital Intensity, Thin Capitalization, Accounting Conservatism, Institutional Ownership

1. Apriliana, T., & Margie, L. A. (2024a). The Effect Of Company Size, Financial Distress, And Accounting Conservatism On Tax Avoidance. Journal of Industrial Engineering &Management, 5(4), 95–102. [Google Scholar] [Crossref]

2. Apriliana, T., & Margie, L. A. (2024b). The Effect Of Company Size, Financial Distress, And Accounting Conservatism On Tax Avoidance. Journal of Industrial Engineering & Management Research, 5(4), 95–102. https://doi.org/10.7777/jiemar.v5i4.540 [Google Scholar] [Crossref]

3. Arieftiara, D. (2022). Tax Avoidance Latent Variable Score (Taxlvs) Sebagai Pengukuran Penghindaran Pajak Perusahaan Secara Komprehensif (M. Miftah (ed.)). Widina Bhakti Persada Bandung. [Google Scholar] [Crossref]

4. Ayu, A. G., & Nurcahyono. (2024a). Analysis of The Influence of Auditor Characteristics and Capital Intensity on Tax Avoidance in Coal Sector Mining Companies. Economics and Business International Conference, 1(2), 42–51. [Google Scholar] [Crossref]

5. Ayu, A. G., & Nurcahyono, N. (2024b). Analysis of The Influence of Auditor Characteristics and Capital Intensity on Tax Avoidance in Coal Sector Mining Companies. Economics and Business …, 1(2), 42–51. https://jurnalnew.unimus.ac.id/index.php/EBiC/article/view/423%0Ahttps://jurnalnew.unimus.ac.id/index.php/EBiC/article/download/423/643 [Google Scholar] [Crossref]

6. Dalimah, & Wulandari, R. (2024). The Effect of Profitability, Company Value, and Environmental Social and Governance (Esg) on Tax Avoidance (Empirical Study on Infrastructure Companies on the Indonesia Stock Exchange in 2016-2022). 3, 3861–3876. https://doi.org/https://doi.org/10.55927/fjas.v3i9.11496 [Google Scholar] [Crossref]

7. Ekawati, & Utami, W. (2024). The Influence of Leverage, Profitability, and Liquidity on Tax Avoidance with Institutional Ownership as a Moderating Variable. International Journal For Multidisciplinary Research, 6(2), 1441–1458. https://doi.org/10.36948/ijfmr.2024.v06i02.16645 [Google Scholar] [Crossref]

8. Ervina, N., Zuhra, S., Werastuti, desak nyoman sri, Amani, T., Agustina, putu ayu anggya, Wahidahwati, Tenriwaru, Rohmatunnisa, layly dwi, Murniati, A., Suharsono, riyanto setiawan, Saleh, L., Hanafie, H., & Dura, J. (2022). Teori Akuntansi (Vol. 4, Issue 1). CV. MEDIA SAINS INDONESIA. [Google Scholar] [Crossref]

9. Handayani, R. (2025). The Effect of Transfer Pricing , Sales Growth , Thin Capitalization on Tax Avoidance Moderated by Size. Journal of Economics, Finance Nd a Management Studies, 0(01), 415–423. https://doi.org/10.47191/jefms/v8 [Google Scholar] [Crossref]

10. Hery Vidiyanto, & Agustin Fadjarenie. (2025). the Role of Profitability in Moderating the Influence of Thin Capitalization, Capital Intensity, Carbon Emission Disclosure, and Transfer Pricing Aggressiveness on Tax Avoidance: an Empirical Study on Mining Companies on the Idx 2019-2023. EPRA International Journal of Economics, Business and Management Studies, 17, 197–208. https://doi.org/10.36713/epra24163 [Google Scholar] [Crossref]

11. Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. The Economic Nature of the Firm: A Reader, Third Edition, 283–303. https://doi.org/10.1017/CBO9780511817410.023 [Google Scholar] [Crossref]

12. Jumailah, V. (2020). Pengaruh Thin Capitalization dan Konservatisme Akuntansi terhadap Tax Avoidance dengan Kepemilikan Institusional sebagai Variabel Moderasi. Management and Accounting Expose, 3(1), 13–21. https://doi.org/10.36441/mae.v3i1.132 [Google Scholar] [Crossref]

13. Kusuma, T. B., & Firnanti, F. (2023). Do Capital Intensity and Profitability Affect Tax Avoidance in Manufactuting Company in Indonesia? Journal of Accounting, Business and Management (JABM), 30(1), 78. https://doi.org/10.31966/jabminternational.v30i1.784 [Google Scholar] [Crossref]

14. Margareth, V., Juanda, A., & Khristina, Y. (2024). Pengaruh Thin Capitalization dan Konservatisme Akuntansi terhadap Tax Avoidance dengan Kepemilikan Institusional sebagai Variabel Moderasi. AKURASI: Jurnal Riset Akuntansi Dan Keuangan, 3, 313–324. https://doi.org/10.36407/akurasi.v6i3.1328 [Google Scholar] [Crossref]

15. Meizar, C., Indriasih, D., & Budi Raharjo, T. (2025). The Effect Of Capital Intensity, Corporate Governance, Gender Diversity, And Financial Distress On Tax Avoidance (A Case Study Of Manufacturing Companies Listed On The Indonesian Stock Exchange From 2019 To 2023) Pengaruh. Costing: Journal of Economic, Business and Accounting, 8, 2637–2652. [Google Scholar] [Crossref]

16. Meizar, C., Indriasih, D., & Raharjo, T. B. (2025). The Effect of Capital Intensity, Corporate Governance, Gender Diversity, and Financial Distress on Tax Avoidance (A Case Study of Manufacturing Companies Listed on the Indonesian Stock Exchange from 2019 to 2023). COSTING: Journal of Economic, Business and Accounting, 8(2), 2637–2652. [Google Scholar] [Crossref]

17. Modigliani, F., & Miller, M. H. (1959). The cost of capital, corporation finance, and the theory of investment: Reply. The American Economic Review, 49(4), 655–669. [Google Scholar] [Crossref]

18. Muti’ah, Marsyaf, & Ahmad, Z. (2021). the Influence of Sales Growth, Debt Equity Ratio (Der) and Related Party Transaction To Tax Avoidance. International Journal of Management Studies and Social Science Research, 3(4), 237–244. www.ijmsssr.org [Google Scholar] [Crossref]

19. Nataherwin, Dewi, S., & Widyasari. (2023). Pajak Internasional. Uwais Inspirasi Indonesia. [Google Scholar] [Crossref]

20. Nuari, F. (2024, June). PT Waskita Karya: Terjerat Rekayasa Laporan Keuangan dan Proyek Fiktif, Kerugian Negara Belum Terlunasi Sepenuhnya. Kompasiana. [Google Scholar] [Crossref]

21. Nulhakim, S., & Tarmidi, D. (2025). Pengaruh Thin Capitalization dan Capital Intensity Terhadap Penghindaran Pajak. Journal Akuntansi Manajerial ISSN (E), 10(1), 85–93. http://journal.uta45jakarta.ac.id/index.php/JAM/index [Google Scholar] [Crossref]

22. Prananda, W., & Tumirin. (2025). Pengaruh Thin Capitalization Dan Capital Intensity Terhadap Penghindaran Pajak. Jurnal Akuntansi Manajerial (Managerial Accounting Journal), 10(1), 85–93. [Google Scholar] [Crossref]

23. Pratiwi, E. O., & Trisnawati, R. (2023). Analysis of the Influence Profitability, Accounting Conservatism, Sales Growth, Company Age and Company Size on Tax Avoidance. International Journal of Latest Research in Humanities and Social Science (IJLRHSS, 06(07), 381–390. www.ijlrhss.com [Google Scholar] [Crossref]

24. Purba, R. B. (2023). Teori Akutansi: Sebuah Pemahaman untuk Mendukung Penelitian di Bidang Akuntansi. In CV. Merdeka Kreasi Group. CV. Merdeka Kreasi Group. [Google Scholar] [Crossref]

25. Rachmania, D., & Zahra, A. A. (2025a). Kepemilikan Institusional Memoderasi Thin Capitalization, Capital Intensity, dan Ukuran Perusahaan terhadap Tax Avoidance. Journal of Artificial Intelligence and Digital Business, 4(3), 2333–2340. [Google Scholar] [Crossref]

26. Rachmania, D., & Zahra, A. A. (2025b). Kepemilikan Institusional Memoderasi Thin Capitalization , Capital Intensity , dan Ukuran Perusahaan terhadap Tax Avoidance. Journal of Artificial Intelligence and Digital Business (RIGGS), 4(3), 2333–2340. [Google Scholar] [Crossref]

27. Rahman, F. N., Siregar, D. K., & Susilawati, D. (2023). Effect of thin capitalization and transfer pricing on tax avoidance on manufacturing sector multinational company listed on the indonesia stock exchange for the period 2016-2021. Journal of Management Science (JMAS), 6(1), 93–100. https://exsys.iocspublisher.org/index.php/JMAS/article/view/194 [Google Scholar] [Crossref]

28. Rizki, N., Gunadi, D., Rangga, Y., Nugraha, Y., Pembangunan, U., Veteran, N., Pembangunan, U., & Veteran, N. (2026). The Effect Of Thin Capitalization And Executive Character On Tax Avoidance With Institutional Ownership As A Moderating Variable Pengaruh Thin Capitalization Dan Karakter Eksekutif Terhadap Tax Avoidance Dengan Kepemilikan. Akuntansiku, 5(1), 16–26. [Google Scholar] [Crossref]

29. Rohmah, V. A., & Romadhon, F. (2023). Apakah Karakter Eksekutif Memoderasi Hubungan Antara Thin Capitalization, Transfer Pricing, Financial Distress Dan Penghindaran Pajak? Jurnal Akademi Akuntansi, 6(3), 419–438. https://doi.org/10.22219/jaa.v6i3.24069 [Google Scholar] [Crossref]

30. Sa’ad, H. N., Abubakar, Z., & Salami, S. (2023). Accounting Conservatism and Corporate Tax Avoidance. International Journal of Banking and Finance, 18(1), 51–66. https://doi.org/10.32890/ijbf2023.18.1.3 [Google Scholar] [Crossref]

31. Sari, K. R., Iswanaji, C., & Nugraheni, A. P. (2023). Pengaruh Leverage , Capital Intensity , Dan Inventory Intensity Terhadap Tax Avoidance ( Studi Pada Industri Barang Konsumsi Yang Terdaftar Di BEI. 3(1), 13–24. [Google Scholar] [Crossref]

32. Sari, N. N., & Mayangsari, S. (2024). Pengaruh Thin Capitalization, Konservatisme Akuntansi Dan Financial Distress Terhadap Penghindaran Pajak Dengan Kepemilikan Institusional Sebagai Moderasi. Journal of Economic, Bussines and Accounting (COSTING), 7(3), 5875–5899. https://doi.org/10.31539/costing.v7i3.9109 [Google Scholar] [Crossref]

33. Sihombing, S., & Sibagariang, S. A. (2020). Perpajakan Teori dan Aplikasi. In Widina Bhakti Persada Bandung. Widina Bhakti Persada Bandung. https://doi.org/10.1201/9781003041788-10 [Google Scholar] [Crossref]

34. Tandayu, B., Kalangi, L., & Tangkuman, S. J. (2023). The Uncovering Tax Avoidance Drivers in IDX Mining Firms 2019-2021: Financial Distress, Thin Capitalization, and CSR Disclosure Effects. Ilomata International Journal of Tax and Accounting, 4(2), 221–235. https://doi.org/10.52728/ijtc.v4i2.710 [Google Scholar] [Crossref]

35. Wijaya, S., & Rahayu, F. D. (2021). Penghindaran Pajak: Agresivitas Transfer Pricing, Negara Lindung Pajak, Dan Kepemilikan Institusion. Guepedia. [Google Scholar] [Crossref]

36. Wijayanti, E., Khoiriyah, M., Ratnawati, V., & Nasir, A. (2025). Pengaruh Kompensasi Eksekutif, Konservatisme Akuntansi dan Family Ownership terhadap Tax Avoidance. CURRENT: Jurnal Kajian Akuntansi Dan Bisnis Terkini, 6(1), 205–222. https://doi.org/10.31258/current.6.1.803-820 [Google Scholar] [Crossref]

37. Yanti, Y., & Dwi Astuti, C. (2023). The Effect of Thin Capitalization and Fixed Asset Intensity on Tax Avoidance with Institutional Ownership as a Moderation Variable. Devotion : Journal of Research and Community Service, 4(2), 560–572. https://doi.org/10.36418/devotion.v4i2.407 [Google Scholar] [Crossref]

38. Yoshida, D. (2023a). the Effect of Transfer Pricing, Thin Capitalization and Foreign Ownership on Tax Avoidance. International Journal of Management Studies and Social Science Research, 05(05), 213–219. https://doi.org/10.56293/ijmsssr.2022.4718 [Google Scholar] [Crossref]

39. Yoshida, D. (2023b). the Effect of Transfer Pricing, Thin Capitalization and Foreign Ownership on Tax Avoidance. International Journal of Management Studies and Social Science Research, 05(05), 213–219. https://doi.org/10.56293/ijmsssr.2022.4718 [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors