The Effect of Profitability and Leverage on Tax Avoidance Moderated by Firm Size: Evidence from Property and Real Estate Companies in Indonesia

Sasiska Rani (), Meti Zuliyana () and Rizal Effendi ()
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Sasiska Rani: Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia
Meti Zuliyana: Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia
Rizal Effendi: Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia

Finance, Accounting and Business Analysis, 2023, vol. 5, issue 2, 147-158

Abstract: Purpose : This research aims to determine the moderating role of company size on the influence of profitability and leverage on tax avoidance in property and real estate companies listed on the BEI in 2020 - 2022. Design/Methodology/Approach: This research uses quantitative methods. The research population was 79 companies in the property and real estate sub-sector listed on the Indonesia Stock Exchange in 2020 - 2022. The sample in this study was 10 companies. The sampling technique used purposive sampling. The analytical method used in this research is moderated regression analysis (MRA). Findings: The research results found that profitability has an effect on tax avoidance, leverage has no effect on tax avoidance, company size has no effect on tax avoidance, company size is unable to moderate the effect of profitability on tax avoidance, company size is not able to moderate the effect of leverage on tax avoidance Practical Implications: The findings of this research are useful for increasing insight and helping companies in determining the direction of their tax policies as well as being taken into consideration by the government in formulating tax regulations so as to reduce gaps in tax avoidance. Originality/Value: This research uses company size as a moderating variable to differentiate this research from previous research so that it is hoped that it can provide broader insight into tax avoidance practices. Paper Type:Research Paper.

Keywords: Tax Avoidance; Profitability; Leverage; Firm Size (search for similar items in EconPapers)
JEL-codes: G32 H26 M4 (search for similar items in EconPapers)
Date: 2023
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