Impact of Company Characteristics on Tax Avoidance: A Study on Manufacturing Company in Indonesia during The Pandemic

This research aims to investigate the influence of various factors, such as profitability, leverage, company age, company size, and sales growth, on tax avoidance during the pandemic. The present research has adopted a quantitative approach to investigate a sample size of precisely 133 manufacturing companies registered on the Indonesia Stock Exchange within 2020-2021. The data has been collected through the Indonesian Stock Exchange website and is classified as the secondary type. The data analysis technique utilized in this study is the robust regression method, mainly due to the unfulfilled normal distribution assumption. The study's outcomes may prove valuable to individuals and establishments operating within the manufacturing and finance sectors. The present study findings lend support to the Agency Theory, which posits that the government, in its capacity as the principal, and taxpayers, as the agents, have competing interests. Taxpayers, in their efforts to avoid tax, tend to rely on certain fundamental characteristics, such as firm size, while disregarding other factors, such as profitability, leverage, firm age, and sales growth, as reasons for such avoidance.