Study the Effect of Moderating Corporate Size on the Relationship between Financial Crisis, Ownership Structure and Tax Management

Tax is one of the most important business costs imposed on companies, which has a direct impact on the profitability and wealth of shareholders. Companies around the world often use tax management practices to find ways to reduce tax on profits from their operations. Tax administration is in fact a different tax planning strategy to reduce tax liabilities. The purpose of this study is to investigate the role of corporate size moderator on the relationship between financial crisis, ownership structure and tax management. The ownership structure used in this research includes institutional ownership, management ownership, and state ownership. To analyze the data and test the hypotheses, the linear regression model has been used for estimating generalized least squares (EGLS). Evidence and empirical results of the research showed that financial and management ownership variables have a direct and significant effect and institutional ownership variables have a negative effect on corporate tax management. No significant relationship was found between government ownership and tax administration. The size of the company also strengthens the relationship between financial crisis and tax administration and weakens the relationship between institutional ownership and tax administration. Therefore, it is possible to get the conditions of the companies including the management system and their ability to provide financial resources as the determining factors of tax management. Also, the size of the company modifies the role of these factors in determining tax administration.