Ownership structure, digital transformation, and corporate tax avoidance: Evidence from Indonesia
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Author(s)Yefri ReswitaLink to ORCID Index: https://orcid.org/0009-0000-2563-8404
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Syukri LukmanLink to ORCID Index: https://orcid.org/0009-0007-0853-7098
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Rahmat FebriantoLink to ORCID Index: https://orcid.org/0000-0002-1294-5656
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Fajri AdriantoLink to ORCID Index: https://orcid.org/0000-0001-9347-6355
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DOIhttp://dx.doi.org/10.21511/imfi.23(1).2026.26
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Article InfoVolume 23 2026, Issue #1, pp. 347-359
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Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
Corporate tax avoidance remains a central governance concern in emerging markets characterized by concentrated ownership and uneven monitoring effectiveness. This study examines whether multiple large shareholders and family ownership constrain corporate tax avoidance and whether digital transformation moderates these relationships in Indonesian listed firms. The sample consists of 369 firms (3,670 firm-year observations) during 2013–2022, representing major industry groups on the Indonesia Stock Exchange, including basic materials, energy, consumer cyclical, consumer non-cyclical, industrials, infrastructure, and property and real estate. Panel regression models are estimated using effective tax rates (ETR) and book–tax differences (BTD) as tax avoidance proxies. The results show that multiple large shareholders are negatively but not significantly associated with tax avoidance, indicating limited monitoring effectiveness in the full sample. Family ownership likewise exhibits no systematic relationship with tax avoidance. Furthermore, digital transformation does not significantly moderate the ownership–tax avoidance relationship at the aggregate level. However, industry-level analysis reveals that multiple large shareholders significantly reduce tax avoidance in the consumer cyclical sector, and this effect becomes stronger in firms with higher digital transformation intensity. Overall, the findings indicate that ownership-based governance and digital transformation do not uniformly constrain corporate tax avoidance in Indonesia, and their effectiveness is highly dependent on industry context.
Acknowledgment
This research was supported by the Ministry of Higher Education (MoHE) of Malaysia through the Fundamental Research Grant Scheme (FRGS/1/2022/SS01/UUM/02/10).
- Keywords
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JEL Classification (Paper profile tab)G32, H26, O33
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References38
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Tables5
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Figures0
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- Table 1. Descriptive statistics
- Table 2. Baseline regression
- Table 3. Robustness check
- Table 4. Tax avoidance (ETR) in business sectors
- Table 5. Tax avoidance (BTD) in business sectors
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Digital transformation to enhance Indonesian SME performance: Exploring the impact of market competition and digital strategy
Dorojatun Prihandono 
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Angga Pandu Wijaya ,
Bayu Wiratama ,
Widya Prananta ,
Syam Widia
doi: http://dx.doi.org/10.21511/ppm.22(2).2024.09
Problems and Perspectives in Management Volume 22, 2024 Issue #2 pp. 103-113 Views: 5367 Downloads: 941 TO CITE АНОТАЦІЯIn the current era, the challenges faced by SMEs in Indonesia are becoming increasingly complex. Previously, the primary challenge for SMEs has been to enhance performance. However, with the emergence of information technology, SMEs are now required to compete fiercely. SMEs in Indonesia are still in the process of digital transformation to improve their business strategies, thus limiting research focused on digital transformation in SMEs. Research also considers market complexity and digital strategy as crucial factors for SMEs. The aim of this study is to analyze the role of digital transformation in influencing SME performance. The research approach is quantitative, involving 171 SMEs owners as respondents. The instrument utilized is a Likert scale questionnaire, focusing on the majority of SMEs in Indonesia, particularly those in Java, the most populous island and business center of the country. This includes SMEs operating within various sectors, such as culinary, fashion, retail, and creative industries. The results indicate that digital strategy and market complexity influence digital transformation and SMEs performance. The research findings suggest that digital transformation mediates the influence of digital strategy and market complexity on SME performance. The novelty of this study lies in its focus on the current SMEs digitalization strategy area. This study indicates that digital transformation is an essential aspect affecting current SME performance. The results suggest that SMEs require focused strategies to strengthen resources and gain competitive advantage in complex markets.
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The influence of digital transformation on the growth of small and medium enterprises in South Africa
Sanele Jeza ,
Lawrence Mpele Lekhanya
doi: http://dx.doi.org/10.21511/ppm.20(3).2022.24
Problems and Perspectives in Management Volume 20, 2022 Issue #3 pp. 297-309 Views: 4452 Downloads: 1957 TO CITE АНОТАЦІЯFrom a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.
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Impact of digital transformation on the organization’s financial performance: A case of Jordanian commercial banks listed on the Amman Stock Exchange
Nahed Habis Alrawashedh ,
Mohammad Fawzi Shubita
doi: http://dx.doi.org/10.21511/bbs.19(1).2024.11
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