The Effect of Profitability, Capital Intensity, Company Size, Institutional Ownership, and Corporate Social Responsibility on Corporate Tax Avoidance
Abstract
Tax-related state income plays a significant part in funding state spending. The government is working to maximize tax income, but tax avoidance practices have prevented it from reaching. The effective tax rate (ETR) was used in this study to calculate tax avoidance. This study aims to gather empirical data on the relationship between tax avoidance and variables such as profitability, capital intensity, company size, institutional ownership, and corporate social responsibility. This study was done at mining companies listed on the Indonesia Stock Exchange between 2017 and 2021. From the tax perspective, the mining industry contributes so much to the national economy that it receives comparatively little oversight, resulting in unethical behavior such as tax dodging. The discussion of tax avoidance is interesting because many mining companies still do tax avoidance, which will impact the interest of the government's development. Purposive sampling was used to determine the sample size, yielding 55 samples. Data were evaluated using multiple linear regression analysis with specific criteria, and up to 11 companies were found to fit the criteria. This study's results indicate that profitability positively affects tax avoidance, while capital intensity, company size, institutional ownership, and corporate social responsibility do not.
Keywords
Full Text:
PDFReferences
Akbar, A., & Thamrin, H. (2020). Analysis of Effect of CAPR, DAR, ROA and SIZE on Tax Avoidance. Dinasti International Journal of Management Science, 1(5), 706-718.
Amri, M. (2017). Pengaruh Kompensasi Manajemen terhadap Penghindaran Pajak dengan Moderasi diversifikasi Gender Direksi dan Preferensi Risiko Eksekutif Perusahaan di Indonesia. Jurnal Aset (Akuntansi Riset), 9(1), 1- 14.
Arianandini, P. W., & Ramantha, I. W. (2018). Pengaruh Profitabilitas, Leverage, dan Kepemilikan Institusional pada Tax Avoidance. E-Jurnal Akuntansi, 2088-2116.
Arianti, B. (2020). The Effect of Independent Commissioner’s Moderation of CSR and Institutional Ownership on Tax Avoidance. Jabe (Journal of Accounting and Business Education), 98.
Charisma, R. B., & Dwimulyani, S. (2019). Pengaruh Struktur Kepemilikan Terhadap Tindakan Penghindaran Pajak Dengan Kualitas Audit Sebagai Variabel Moderating. Prosiding Seminar Nasional Pakar, 2, 1-10.
Darsani, P. A., & Sukartha, I. M. (2021). The Effect of Institutional Ownership, Profitability, Leverage and Capital Intensity Ratio on Tax Avoidance. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 13-22.
Dewi, N. L., & Noviari, N. (2017). Pengaruh Ukuran Perusahaan, Leverage, Profitabilitas dan Corporate Social Responsibility terhadap Penghindaran Pajak (Tax Avoidance). E-Jurnal Akuntansi, 21(2), 882-911.
Dewinta, I. A., & Setiawan, P. E. (2016). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Profitabilitas, Leverage, dan Pertumbuhan Penjualan Terhadap Tax Avoidance. E-jurnal Akuntansi, 1584-1615.
Dharma, I. M., & Ardiana, P. A. (2016). Pengaruh Leverage, Intensitas Aset Tetap, Ukuran Perusahaan, dan Koneksi Politik Terhadap Tax Avoidance. E- Jurnal Akuntansi Universitas Udayana, 15, 584-613.
Dharma, N. B., & Noviari, N. (2017). Pengaruh Corporate Social Responsibility Dan Capital Intensity Terhadap Tax Avoidance. E-Jurnal Akuntansi, 18(1), 529-556.
Fiandri, K. A., & Muid, D. (2017). Pengaruh Kepemilikan Institusional Dan Ukuran Perusahaan Terhadap Tax Avoidance Dengan Kinerja Keuangan Sebagai Variabel Mediasi Padaperusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia tahun 2011–2014. Diponegoro Journal of Accounting, 6(2), 31-43.
Gay, L., & Diehl, P. (1992). Research Methods for Business and Management. New York: Mc. Millan Publishing Company.
Gebhart, M. S. (2017). Measuring Corporate Tax Avoidance - An Analysis of Different Measures. Junior Management Science, 43-60.
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Semarang: Badan Penerbit Universitas Diponegoro.
Gunawan, C. (2020). Mahir Menguasai SPSS Panduan Praktis Mengolah Data Penelitian New Edition Buku untuk Orang yang (Merasa) Tidak Bisa dan Tidak Suka Statistika. Yogyakarta: Penerbit Deepublish.
Harahap, R. (2021). Harahap, R. (2021). Analysis of the Effect of Institutional Ownership Profitability, Sales Growth and Leverage on Tax Avoidance in Construction Subsector Companies. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(3), 5010-5018.
Hidayati, N., & Fidiana, F. (n.d.). Pengaruh Corporate Social Responsibility Dan Good Corporate Governance Terhadap Penghindaran Pajak. Jurnal Ilmu dan Riset Akuntansi (JIRA), 6(3), 2017.
Ichsani, S., & Susanti, N. (2019). The Effect of Firm Value, Leverage, Profitability and Company Size on Tax Avoidance in Companies Listed on Index LQ45 period 2012-2016. Global Business and Management Research: An International Journal, 307-313.
Irawan, Y., Sularso, H., & Farida, Y. N. (2020). Analisis atas Penghindaran Pajak (Tax Avoidance) pada Perusahaan Properti dan Real Estate di Indonesia. Soedirman Accounting Review, 02, 114-127.
Kalbuana, N., Solihin, S., Yohana, Y., & Yanti, D. R. (2020). The influence of capital intensity, firm size, and leverage on tax avoidance on companies registered in Jakarta Islamic index (Jii) period 2015-2019. International Journal of Economics, Business and Accounting Research (IJEBAR), 4(03).
Kurnia, Pratomo, D., & Raharja, D. G. (2021). The Influence of Capital Intensity and Fiscal Loss Compensation on Tax Avoidance (Study of Food and Beverages Companies Listed on The Indonesia Stock Exchange from 2010- 2015). PalArch's Journal of Archaeology of Egypt/Egyptology, 18(1), 813-823.
Mahrani, S. (2019). Corporate Governance, Profitability, and Liquidity Against Tax Avoidance in Mining Companies Registered on The Indonesia Stock Exchange in 2012-2016. Research Journal of Finance and Accounting, 10(11), 68-78.
Masyuri, M. Z. (2009). Metodologi Penelitian Pendekatan Praktis dan Aplikatif / Masyuri, M. Zainuddin. Bandung: Refika Aditama.
Monika, C. M., & Noviari, N. (2021). The Effects of Financial Distress, Capital Intensity, and Audit Quality on Tax Avoidance. American Journal of Humanities and Social Sciences Research (AJHSSR), 282-287.
Muzakki, M. R., & Darsono, D. (2015). Pengaruh Corporate Social Responsibility Dan Capital Intensity Terhadap Penghindaran Pajak. Diponegoro Journal of Accounting, 4(3), 445-452.
Nathania, C., Wijaya, S., Hutagalung, G., & Simorangkir, E. N. (2021). The Influence of Company Size and Leverage on Tax Avoidance With Profitability As Intervening Variable At Mining Company Listed In Indonesia Stock Exchange Period 2016-2018. International Journal of Business, Economics and Law, 24(2), 132-140.
Pattiasina, V., Tammubua, M. H., Numberi, A., Patiran, A., & Temalagi, S. (2019). Capital Intensity and Tax Avoidance: An Indonesian Case. International Journal of Social Sciences and Humanities, 3(1), 58-71.
Pitaloka, S., & Merkusiawati, N. (2019). Pengaruh Profitabilitas, Leverage, Komite Audit, dan Karakter Eksekutif Terhadap Tax Avoidance. E-Jurnal Akuntansi, 27(2), 1202-1230.
Prabowo, I. C. (2020). Capital Structure, Profitability, Firm Size and Corporate Tax Avoidance: Evidence from Indonesia Palm Oil Companies. Business Economic, Communication, and Social Sciences (BECOSS) Journal, 2(1), 97-103.
Prasetyo, A., Masitoh, E., & Wijayanti, A. (2018). The Influence of Good Corporate Governance, Capital Intensity Ratio, and Profitability to Effective Tax Rate (Empirical Study on Manufacturing Companies Basic Industry Sectors and Chemicals Listed in Indonesia Stock Exchange Year 2011-2015). The 2nd International Conference on Technology, Education, and Social Science 2018, 74-82.
Resmi, S. (2017). Taxation Theory and Cases. Jakarta: Salemba Empat.
Rodriguez, E. F., & Arias, A. M. (2012). Do Business Characteristics Determine an Effective Tax Rate? Chinese Economy, 45(6), 60-83.
Saifudin, & Yunanda, D. (2016). Determinasi Return on Asset, Leverage, Ukuran Perusahaan Kompensasi Rugi Fiskal dan Kepemilikan Institusi Terhadap Penghindaran Pajak ( Studi Empiris Pada Perusahaan Manufaktur yang Terddaftar di BEI Tahun 2011-2014. Jurnal Penelitian Ilmu Ekonomi Wiga, 6(2), 131-143.
Sandra, M. Y., & Anwar, A. S. (2018). Pengaruh Corporate Social Responsibility dan Capital Intensity terhadap Penghindaran Pajak. Jurnal Akademi Akuntansi, 1-10.
Santoso, S. (2010). Statistik Parametrik. Jakarta: PT Elex Media Komputindo.
Saputra, M., Nadirsyah, & Hanifah, H. (2017). The Influence of Ownership Structures , Financial Distress , and Tax Loss Carry Forward on Tax Avoidance (Study on Manufacturing Company Listed in Indonesia Stock Exchange). Journal of Resources Development and Management, 21-31.
Sarra, H. D. (2017). Pengaruh Konservatisme Akuntansi, Komite Audit Dan Dewan Komisaris Independen Terhadap Penghindaran Pajak (Studi Empiris Pada Industri Kimia dan Logam di Bursa Efek Indonesia Periode 2010-2014). Competitive Jurnal Akuntansi Dan Keuangan, 63.
Siregar, S. V., & Utama, S. (2008). Type of Earnings Management and The Effect of Ownership Structure, Firm Size, and Corporate-Governance Practices: Evidence from Indonesia. The International Journal of Accounting, 43(1), 1-27.
Solihin, E. M. (2018). Impact of Corporate Social Responsibility Disclosure to Stockprice of Banking and Mining Industry Listed at Indonesia Stock Exchange (IDX). American Research Journal of Business and Management, 4(1), 1-8.
Sonia, S., & Suparmun, H. (2019). Factors influencing Tax Avoidance. In 5th Annual International Conference on Accounting Research (AICAR 2018), 238-243.
Sriyono, S., & Andesto, R. (2022). The Effect Of Profitability, Leverage And Sales Growth On Tax Avoidance With The Size Of The Company As A Moderation Variable. Dinasti International Journal of Management Science, 112-126.
Sugiyono. (2010). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Wardani, D. K., & Pricillia, R. M. (2019). Effect of Corporate Social Responsibility (Csr), Profitability, and Profit Management on Tax Evasion. Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 14(1), 56-67.
Widarjono, A. (2015). Analisis multivariat terapan / Agus Widarjono, Ph. D. Yogyakarta: UPP STIM YKPN.
Wiguna, I. P., & Jati, I. K. (2017). Pengaruh Corporate Social Responsibility, Preferensi Risiko Eksekutif, dan Capital Intensity pada Penghindaran Pajak. E-Jurnal Akuntansi, 21(1), 418-446.
Yuni, N. P., & Setiawan, P. E. (2019). Yuni, N. P. A. I., & Setiawan, P. E. (2019). Pengaruh Corporate Governance dan Profitabilitas terhadap Penghindaran Pajak dengan Ukuran Perusahaan Sebagai Variabel Pemoderasi. E-Jurnal Akuntansi, 29(1), 128-144.
DOI: https://doi.org/10.24198/jaab.v6i2.48932
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 Journal of Accounting Auditing and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal of Accounting Auditing and Business (JAAB) Indexed in:
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.