Effect of Leverage, Inventory Intensity, Fixed Asset Intensity, and Political Connections on Tax Aggressiveness (Empirical Study of Multinational Companies Listing on the Indonesia Stock Exchange 2017-2021)

Abstract

This study aims to prove empirically thst leverage, inventory intensity, fixed asset intensity, and political connections have an effect on tax aggressiveness. The population of this study are multinational companies listed on the Indonesia Stock Exchange between 2017 and 2021. This survey relied on quantitative research and a variety of secondary data sources. In the population, there are 85 businesses. The sampling technique is 25 companies x 5 years = 125 financial report data from companies. In this case, the analytical method used is multiple linear regression analysis.
 Testing outcomes of the multiple linear regression coefficients show that Leverage does not affect tax aggressiveness. Inventory intensity influences tax aggressiveness positively. The power of fixed assets has a positive effect on tax aggressiveness. The political connections have no bearing on tax evasion.
 
 Keywords: Leverage, inventory intensity, fixed asset intensity, political connections, tax aggressiveness.

The Impact of the Influence of Profitability, Company Size, and Leverages on Tax Avoidance

“…A large entity will have significant assets so that the entity may avoid tax. The political cost hypothesis in positive accounting theory is used to explain that entities dealing with political costs tend to reduce political costs because the larger the size of the entity, the greater the tendency of the entity to decide on accounting policies to reduce profits, thus the entity can minimize tax avoidance (Sartika & Prastyatini, 2023).…”