ANALISIS PENGARUH PROFITABILITAS, LEVERAGE, KEPEMILIKAN INSTITUSIONAL DAN UKURAN PERUSAHAAN TERHADAP TAX AVOIDANC

Abstract

Tax avoidance is a practice of legal tax avoidance by exploiting a loophole in taxation regulations. This is done in order to minimize the tax burden so that the profit earned by a company increases. Increasing the profit of a company, the manager (agent) will get a good image from the shareholder (principal). This study aims to examine the effect of profitability, leverage, institutional ownership and company size on tax avoidance. The proxy for the dependent variable used is CETR, while the independent variables are profitability (ROA), Leverage (DAR), Institutional Ownership (INST) and Company Size (SIZE). The population used in this study were all 179 manufacturing companies listed on the IDX 2017-2019. Using the purposive sampling method as sample determination. The analytical tool used is SPSS (SPSS adalah Statistical Product and Service Solutions) with multiple linear regression analysis techniques. The results showed that profitability had a negative effect on tax avoidance. Leverage variables, institutional ownership, and firm size have no effect on tax avoidance.