Open AccessTHE EFFECT OF LIQUIDITY, CAPITAL INTENSITY, AND INVENTORY INTENSITY ON TAX AVOIDANCE
Author(s) -
Syifa Urrahmah,
Aloysius Harry Mukti
Publication year - 2021
Publication title -
international journal of research - granthaalayah
Language(s) - English
Resource type - Journals
eISSN - 2394-3629
pISSN - 2350-0530
DOI - 10.29121/granthaalayah.v9.i12.2021.4399
Subject(s) - capital intensity , market liquidity , business , econometrics , monetary economics , return on capital employed , tax avoidance , stock exchange , intensity (physics) , economics , finance , double taxation , capital formation , financial capital , microeconomics , profit (economics) , physics , quantum mechanics
This study aims to examine the effect of liquidity, capital intensity, and inventory intensity on tax avoidance with leverage and profitability as control variables. Tax avoidance was measured by Effective Tax Rate (ETR), liquidity was measured by current ratio, capital intensity was measured by capital intensity ratio, inventory intensity was measured by inventory intensity ratio, leverage was measured by Debt to Equity Ratio (DER), and profitability was measured by Return on Assets (ROA). The population in this study are all manufacturing sector companies listed on the Indonesia Stock Exchange for the period 2017-2019. The sampling technique used is purposive sampling method and obtained as many as 106 data samples. The analytical method used is multiple linear regression.