Profitability, Firm Size, Leverage, and Tax Avoidance in Indonesian Food and Beverage Companies

Hardiansyah Hardiansyah () and Fauziah Umar
Additional contact information
Hardiansyah Hardiansyah: Hasanuddin University
Fauziah Umar: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 2509-2518 from Springer

Abstract: Abstract This study analyzes the influence of corporate characteristics on tax avoidance practices among food and beverage companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The research focuses on three main variables: profitability, firm size, and leverage. The analysis reveals that profitability, measured by Return on Assets (ROA), does not have a significant impact on tax avoidance, a significance level of 0.085. Similarly, firm size is not found to significantly affect tax avoidance, a significance level of 0.130. In contrast, leverage, measured by the Debt to Equity Ratio (DER), shows a positive and significant relationship with tax avoidance, a significance level of 0.018. These findings suggest that companies with higher leverage are more likely to engage in tax avoidance strategies by utilizing interest expenses to reduce taxable income. Overall, the results highlight that tax avoidance is a multifaceted issue influenced by various factors, particularly financial strategies related to capital structure.

Keywords: Tax Avoidance; Profitability; Leverage; Company Size; Indonesia Stock Exchange; Food and Beverage Industry (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_175

Ordering information: This item can be ordered from
http://www.springer.com/9789462397095

DOI: 10.2991/978-94-6239-709-5_175

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().