The Effect of Executive Character, Capital Intensity, Sales Growth, and Financial Distress on Tax Avoidance

Abstract

This study aims to test empirically the effect of executive character, capital intensity, sales growth, and financial distress on tax avoidance. The population used in this study were manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2018-2020. Sampling of the population used purposive sampling technique so as to produce a total sample of 64 companies with 182 units of analysis after outliers. Collection techniques The data in this study used documentation techniques. The data obtained are sourced from www.idx. co.idor the official website of each sample company. Data analysis using panel data regression with Microsoft Excel and Eviews version 9. The results of the study prove that the empirical character variable has a significant positive effect on tax avoidance, empirically capital intensity has a significant negative effect on tax avoidance, while sales growth and financial distress do not. Effect on tax avoidance.

Variables That Influence Tax Avoidance of Financial Sector Companies Listed on the Idx

“…Although there are many related studies on tax avoidance, the results are inconsistent. In [3], [4], and [5], Executive Character has a significant positive effect on Tax Avoidance, otherwise in [6] and [7] Executive Character does not affect Tax Avoidance. Other studies say that Executive Character has a negative effect on Tax Avoidance, namely research by [8].…”

“…Therefore, executives with a risk-taking nature try to increase company income by carrying out tax avoidance [39]. The research found that executive character has a significant positive effect on Tax Avoidance [4], [5], and [6].…”