Open AccessThe Effect of Liquidity, Thin Capitalization, Capital Intensity, and Earnings Management on Tax Avoidance in Manufacturing Companies Listed in Indonesia Stock Exchange (IDX) 2010-2020 Period
Author(s) -
Rika Nisma Aisyah,
. Erlina,
Keulana Erwin
Publication year - 2022
Publication title -
international journal of research and review
Language(s) - English
Resource type - Journals
eISSN - 2454-2237
pISSN - 2349-9788
DOI - 10.52403/ijrr.20220126
Subject(s) - stock exchange , business , tax avoidance , market liquidity , earnings management , accounting , econometrics , economics , finance , earnings , double taxation
This study aims to determine the effect of liquidity, thin capitalization, capital intensity, and earnings management on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2010-2020 period. The type of research used is descriptive quantitative. The research sample used was 34 companies from 184 companies. The sample return method used is the selection of samples for research from the research population by fulfilling several predetermined criteria (purposive sampling). The data type used is secondary data, and the data analysis technique is a multiple linear regression test using Eviews 9 software. The proxy used for tax avoidance is the book-tax difference (BTD). The results of this study indicate that liquidity and earnings management have a positive and significant effect on tax avoidance. Meanwhile, thin capitalization and capital intensity do not affect tax avoidance.Keywords: Tax Avoidance, Liquidity, Thin Capitalization, Capital Intensity, Earnings Management.