ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI TAX AVOIDANCE DENGAN LEVERAGE SEBAGAI VARIABEL INTERVENING (Studi Empiris pada Perusahaan Food and Beverage Stock Exchange of Thailand Periode Tahun 2015-2019 )

Abstract

This study aims to analyze Company Size, Institutional Ownership, Executive Character, Sales Growth, and Profitability against Tax Avoidance with leverage as an intervening variable. The data used are financial reports (annual reports) during 2015 - 2019. The sample method used in this study is purposive sampling. The entire sample consists of 10 food and beverage companies listed on the Thailand Stock Exchange. The analysis tool used was SPSS 23.0. Hypothesis testing is using Path Analysis and Sobel Test. The results showed that Institutional Ownership (X2), Executive Character (X3) and Sales Growth (X4), showed a direct influence on Leverage (Z). Meanwhile, the variable Company Size (X1) and Profitability (X5) shows an indirect effect on Leverage (Z). Company Size (X1) and Leverage (Z) show a direct effect on Tax Avoidance (Y). Meanwhile, the variables of Institutional Ownership (X2), Executive Character (X3), Sales Growth (X4), and Profitability (X5) show an indirect effect on Tax Avoidance (Y). Based on the Sobel Leverage (Z) test, it is unable to become an intervening variable between Company Size (X1), Institutional Ownership (X2), Executive Character (X3), Sales Growth (X4), and Profitability (X5) on Tax Avoidance (Y).

Profitability, Capital Intensity, and Company Size against Tax Avoidance with Leverage as an Intervening Variable

“…The size of the company if it gets bigger, then tax avoidance tends to be done. The statement is consistent with the findings (Jannah & Dimyati, M.Si, 2021), (Sarpingah, 2020), (Ayu & Kartika, 2019), (Nababan & Primasari, 2019), (Putri & Putra, 2017), (Tristianto & Oktaviani, 2016) who said company size affects tax avoidance directly. Nevertheless, it does not correspond to (Yusrizal et al, 2022), (Bandoro & Ariyanto, 2020), (Widodo & Wulandari, 2021), (Ernawati et al, 2019), (Andharini & Kanti, 2018) which suggests that tax avoidance is not directly influenced by company size.…”

“…When the profit obtained is high, it can increase the number of mandatory contribution dependents, so the practice of tax avoidance will be carried out. The explanation is in accordance with the findings of the study (Jannah & Dimyati, M.Si, 2021), (Sarpingah, 2020), (Ayu & Kartika, 2019), (Nababan & Primasari, 2019), (Putri & Putra, 2017), (Tristianto & Oktaviani, 2016) Leverage is the ratio to measure a company's capability to meet long-term and short-term obligations. Leverage on a company is said to be large if the number of company assets is less than the number of assets of its creditors (Idris, 2021).…”

“…This is in accordance with the findings of (Andalenta & Ismawati, 2022), (Muniroh, 2022), (Bandoro & Ariyanto, 2020), (Ayu & Kartika, 2019), (Rifai & Atiningsih, 2019), (Andharini & Kanti, 2018), (Hidayat, 2018), (Putri & Putra, 2017) which explains that profitability has a direct effect on tax avoidance. However, these findings are different from those of (Yusrizal et al, 2022), (Jannah & Dimyati, M.Si, 2021), (Widodo & Wulandari, 2021) (Nababan & Primasari, 2019) which state that tax avoidance is not directly affected by profitability.…”

“…This is in line with (Andalenta & Ismawati, 2022), (Muniroh, 2022), (Bandoro & Ariyanto, 2020), (Ayu & Kartika, 2019), (Rifai & Atiningsih, 2019), (Andharini & Kanti, 2018), (Hidayat, 2018), (Putri & Putra, 2017) which states tax avoidance is influenced by profitability. Nevertheless, it is not in line with (Yusrizal et al, 2022), (Jannah & Dimyati, M.Si, 2021), (Widodo & Wulandari, 2021) (Nababan & Primasari, 2019) which expresses otherwise.…”

“…Leverage causes the relationship between the variables of profitability, capital intensity, and company size to have an indirect effect on tax avoidance. Findings (Yusrizal et al, 2022), (Jannah & Dimyati, M.Si, 2021) state that leverage does not play a role in the relationship between profitability and company size or it says profitability and company size do not have an indirect effect on tax avoidance.…”