The Effect of Corporate Risk, Sales Growth and Profitability on Tax Avoidance (Study in Food Sub-sector of Indonesian Stock Exchange on 2018-2020)

Author:

Mukti Aloysius Harry1,Fajriah Nur Hayati2

Affiliation:

1. Department Accounting, Bhayangkara Jakarta Raya University INDONESIA

2. Department Accounting, Pelita Harapan University INDONESIA

Abstract

This research was conducted to analyse, observe and test the effect of Corporate Risk, Sales Growth, and Profitability on Tax Avoidance practices. The object of this research is the food and beverage sub-sector companies listed on the IDX during the 2018-2020 period. The sample selection used the purposive sampling method with a total of 143 samples that met the criteria. The analytical method used is multiple linear regression analysis with the help of the SPSS statistical program. From this test, the results show that (1) corporate risk, profitability and corporate size have no effect on tax avoidance, (2) sales growth have a negative effect on tax avoidance, (3) leverage have a positive effect on tax avoidance.

Publisher

World Scientific and Engineering Academy and Society (WSEAS)

Reference10 articles.

1. OECD, “Revenue Statistics in Asian and Pacific Economies,” 2018, [Online]. Available: https://doi.org/10.1787/9789264308091-en.

2. S. Nabila and I. Zulfikri, “Influence Of Company Risk, Leverage (Debt To Equity Ratio) And Sales Growth On Tax Avoidance (Empirical Study on Food & Beverage Subsector Manufacturing Companies Listed on the IDX 2014-2017),” Proced. Natl. Semin. Scholarsh., pp. 1179–1182, 2018, [Online]. Available: https://trijurnal.lemlit.trisakti.ac.id/semnas/article /view/3496.

3. Yustrianthe and Fatniasih, “The Effect of Sale Growth, Leverage and Profitability on Tax Avoidance (In Manufacturing Companies Listed on the IDX for the 2015-2019 Period),” MEA Sci. J. (Management, Econ. Accounting), 2021.

4. E. Jon, S. Bambang, S. Bambang, and D. Tjahjanulin, “Improving the Indonesian Taxation System using Tax Amnesty’s Policy,” WSEAS Trans. Bus. Econ., vol. 19, pp. 876–884, 2022, doi: 10.37394/23207.2022.19.76.

5. I. Dewinta and P. Setiawan, “The Effect Of Company Size, Company Age, Profitability, Leverage, And Sales Growth On Tax Avoidance,” Accounting, E-Journal of, vol. 14, no. 3, pp. 1584–1615, 2016, [Online]. Available: https://ojs.unud.ac.id/index.php/Accounting/articl e/view/16009.

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