Institutional Ownership as a Moderator in the Relationship Between Company Size, Profitability, Tax Avoidance, and Cost of Debt

Abstract

This research is a quantitative study which aims to find out the influence of company size, profitability and tax avoidance on the cost of debt with institutional ownership as a moderating variable in construction companies listed on the Indonesian Stock Exchange in 2019-2021. The number of samples in this research was 16 companies with a sampling method using a purposive sampling method. This research uses secondary data obtained through company annual reports. Analysis of panel data regression data using e-views 12. The results of the analysis show that the tax avoidance variable has an effect on the cost of debt, while the variables of company size and profitability have no effect on the cost of debt. Institutional ownership can moderate the effect of tax avoidance on the cost of debt, but institutional ownership cannot moderate the effect of company size and profitability on the cost of debt.