Analysis of the Effect of Profitability, Company Size and Leverage on Tax Avoidance (Study on Go Public Companies In Indonesia)

Authors

  • Sri Ernawati Doctoral Program University of Merdeka Malang, and STIE Indonesia Banjarmasin, Indonesia
  • Grahita Chandrarin Graduate Program, University of Merdeka Malang, Indonesia
  • Harianto Respati Graduate Program, University of Merdeka Malang, Indonesia

DOI:

https://doi.org/10.31695/IJASRE.2019.33547

Keywords:

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.

Published

2019-10-02

How to Cite

Ernawati, S. ., Chandrarin, G., & Respati, H. (2019). Analysis of the Effect of Profitability, Company Size and Leverage on Tax Avoidance (Study on Go Public Companies In Indonesia). I. J. Of Advances in Scientific Research and Engineering-IJASRE (ISSN: 2454 - 8006), 5(10), 74-80. https://doi.org/10.31695/IJASRE.2019.33547