The Influence of Profitability, Leverage, Firm Size and Capital Intensity Towards Tax Avoidance

Irianto, Bambang Setyobudi; S.Ak, Abim Wafirli

doi:10.15640/ijat.v5n2a3

Cited by 90 publications

(152 citation statements)

References 5 publications

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“…It is negative and therefore, the larger the company, the lower the ETR. This result is in line with Irianto et al (2017), Janssen (2005), and Richardson and Lanis (2007). It supports the "political power theory" (Siegfried, 1972).…”

Section: Sectorsupporting

confidence: 85%

“…Thus, the related research hypotheses (H 2 and H 3 ) are confirmed. The result concerning the first variable is in line with Delgado et al (2018), Irianto et al (2017), Liu and Cao (2007). Most previous studies (Gupta and Newberry, 1997;Richardson and Lanis, 2007) that did not directly control for the effect of tax benefits envisaged to incentivise the investment in tangible fixed assets initially hypothesised and later found that a statistically significant and negative association exists between the incidence of tangible fixed assets and the ETR.…”

Section: Parametersupporting

confidence: 76%

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The determinants of the corporate effective tax rate of Italian private companies

Poli¹

2019

Afr. J. Bus. Manage.

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This study investigates the determinants of the corporate effective tax rate (ETR) of Italian private (unlisted) companies in 2016 and 2017. Although a large body of research has addressed the issue of the determinants of the ETR, both the Italian context and the private companies have been the object of scant attention in previous studies. To test research hypotheses, as in several previous studies, a pooled cross-sectional OLS model has been adopted. The study shows a statistically significant and negative (positive) association between ETR and firm size, investment in tangible fixed assets, inventories, investments in subsidiaries, affiliates and other companies, and the firm's profitability (intangible fixed assets and the firm's indebtedness). Conversely, it shows no statistically significant association between ETR and tangible fixed assets. The financial year in question, the region where companies are located, and the economic sector they belong to, included as control variables, affect the ETR. Italian public policy-makers and Italian and non-Italian economic operators can benefit from the results of the study in order to make more informed future decisions.

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Section: Sectorsupporting

confidence: 85%

Section: Parametersupporting

confidence: 76%

The determinants of the corporate effective tax rate of Italian private companies

Poli¹

2019

Afr. J. Bus. Manage.

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“…With these conditions, the company will try to maintain its business cash flow instead of making tax payments. Furthermore, the use of variable leverage conducted by [9] shows that leverage has a negative effect on tax avoidance in addition to that research with similar variables that have been conducted by [5] The results of this study indicate that there is an influence between leverage and tax avoidance. Then corporate governance variables are used as one of the variables in research such as research conducted by [4] because, in the study, it stated that corporate governance has a positive influence on tax avoidance.…”

Section: Introductionsupporting

confidence: 64%

Tax Avoidance on the Banking Industry in the Era of Financial Technology Development

Pribadi*,

Prawati

2019

IJRTE

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Current technological developments touch the financial sector, now known as Financial Technology (Fintech). Fintech makes financial services faster and cheaper. With the development of Fintech, the banking world is also developing. Fintech and banking collaborate to get the maximum profit. Under these conditions, this study aims to analyze the factors that influence tax avoidance on banking companies listed on the Indonesia Stock Exchange. The population to observe were 43 banking companies listed on the Indonesia Stock Exchange in the 2015-2017 period. The sample selection uses the purposive sampling method, and 21 banking companies are selected according to the criteria and processed using SPSS version 25. The dependent variable used is the effective cash tax rate (CETR). Besides, the independent variables are profitability (Return on Assets), liquidity (Loan to Deposit Ratio), leverage (Debt to Total Assets), corporate governance (corporate governance based on Surat Edaran Bank Indonesia 15/15 / DPNP), and company size. The results showed that company liquidity and size significantly affected the cash effective tax rate, while profitability, leverage, and corporate governance did not affect the cash effective tax rate. This research can be used by companies to pay attention to aspects of reporting and implementation of good corporate governance, and banking companies are expected to be able to extend credit following applicable regulations. Then for tax consultants are expected to be able to use laws and regulations wisely and not be used as a loophole to make deviations in the interests of clients. Furthermore, the Government is expected to be able to increase the supervision of tax legislation so that it is not misused or used by certain interested parties and closely supervises credit disbursements made by banking companies to comply with applicable regulations

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“…Kepemilikan aset tetap akan berpengaruh pada pengurangan pembayaran pajak yang akan dibayarkan oleh perusahaan, karena aset tetap menyebabkan adanya biaya depresiasi. Rasio intensitas modal sering dikaitkan dengan seberapa besar aktiva tetap dan saham yang dimiliki oleh perusahaan (Irianto, Sudibyo, & Wafirli S.Ak, 2017).…”

Section: Capital Intensityunclassified

Pengaruh Gcg, Profitabilitas, Capital Intensity, dan Ukuran Perusahaan terhadap Tax Avoidance

2020

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Tax Avoidance is a taxpayer's attempt to exploit the legal gap for the tax to be minimized. The study aims to empirically know the influence of good corporate governance (independent Board of Commissioners, institutional ownership, Audit Committee), profitability, capital intensity, and size of the company To the tax avoidance of the banking sector companies listed on the Indonesia Stock Exchange (IDX) with a 3-year observation period in 2016-2018. The theory used in this study was agency theory. The population in this research is the entire banking sector company listed on the Indonesia Stock Exchange period 2016-2018 with the determination of research samples using the purposive sampling method, resulting in a sample of 21 companies Banking sector. The data analysis techniques used in this study were multiple linear regression. The results of this research show that an independent board of Commissioners, profitability, and capital intensity do not affect tax avoidance. Meanwhile, institutional ownership, audit committee, and size affect tax avoidance.

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The Influence of Profitability, Leverage, Firm Size and Capital Intensity Towards Tax Avoidance

Cited by 90 publications

References 5 publications

The determinants of the corporate effective tax rate of Italian private companies

The determinants of the corporate effective tax rate of Italian private companies

Tax Avoidance on the Banking Industry in the Era of Financial Technology Development

Pengaruh Gcg, Profitabilitas, Capital Intensity, dan Ukuran Perusahaan terhadap Tax Avoidance

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