Analysis of the Effect of Profitability, Company Size and Leverage on Tax Avoidance (Study on Go Public Companies In Indonesia)
DOI:
https://doi.org/10.31695/IJASRE.2019.33547Keywords:
Tax avoidance, Profitability, Company size, Leverage.Abstract
This study aims to obtain evidence of the effect of profitability, company size, and leverage on tax avoidance. Research using quantitative data includes profitability proxied by Return On Assets, company size, leverage and tax avoidance which is proxied through the Cash Effective Tax Rate (CETR). Public companies in Indonesia for the period 2013-2017 as the study population while the sample in this study were public companies included in the manufacturing industry sector. Sampling using a purposive sampling method. Statistical analysis shows that there is a correlation between profitability and leverage. For this reason, profitability variables are not included in subsequent analyses. The results of the research have found empirical evidence that leverage has a significant effect on tax avoidance on publicly traded companies in Indonesia. The higher the leverage the higher the tax avoidance. As for the size of the company did not find empirical evidence significant effect on tax avoidance.
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Copyright (c) 2019 Sri Ernawati, Grahita Chandrarin, Harianto Respati

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