Profitability, Capital Intensity, and Leverage as Determinants of Tax Avoidance: Empirical Evidence from Indonesian Manufacturing Companies

Abstrak

This study aims to determine the effects of profitability, capital intensity, and leverage on tax avoidance in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange during the 2019–2022 period. Secondary data were obtained from financial statements accessed through the Indonesia Stock Exchange and from share-related data of manufacturing companies in the consumer goods industry sector. Purposive sampling was employed to select the sample. The population consisted of manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange during 2019–2022. The research sample comprised 124 observations. The data were subjected to classical assumption tests, including normality, multicollinearity, heteroscedasticity, and autocorrelation tests. Multiple linear regression was used for data analysis, and hypothesis testing was performed using SPSS (Statistical Product and Service Solutions) Version 25. The results indicate that profitability, measured using Return on Assets (ROA), has a negative and significant effect on tax avoidance. Meanwhile, capital intensity and leverage have positive and significant effects on tax avoidance.