Research Article
The Influence of Capital Intensity, Sales Growth, Financial Distress, and Accounting Conservatism on Tax Avoidance: Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange in 2018-2020
@INPROCEEDINGS{10.4108/eai.9-8-2022.2338673, author={Siti Inayatun Na’imah and Heri Yanto and Niswah Baroroh and Ain Hajawiyah}, title={The Influence of Capital Intensity, Sales Growth, Financial Distress, and Accounting Conservatism on Tax Avoidance: Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange in 2018-2020}, proceedings={Proceedings of the 5th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2022, 9-10 August 2022, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2023}, month={11}, keywords={mining company capital intensity sales growth financial distress accounting conservatism tax avoidance}, doi={10.4108/eai.9-8-2022.2338673} }- Siti Inayatun Na’imah
Heri Yanto
Niswah Baroroh
Ain Hajawiyah
Year: 2023
The Influence of Capital Intensity, Sales Growth, Financial Distress, and Accounting Conservatism on Tax Avoidance: Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange in 2018-2020
ICE-BEES
EAI
DOI: 10.4108/eai.9-8-2022.2338673
Abstract
To ensure the company will continue to operate smoothly and stay lucrative, the company continues to strive to minimize the burden of costs that must be paid. Tax avoidance is one of the strategies commonly used by companies to reduce the number of tax payments by exploiting weaknesses of tax regulation. This study examines the effect of capital intensity, sales growth, financial distress, and accounting conservatism on tax avoidance. This study uses a quantitative approach to analyze the effect of independent variables on tax avoidance. The population in this study were 49 mining companies listed on the Indonesia Stock Exchange in the period 2018-2020. The sample was selected using the purposive sampling method resulting in the final sample of 37 companies with 84 units of analysis. The study omitted 14 outliers, so that the final sample was 70 units of analysis. By using a multiple linear regression test with panel data, the study found that financial distress had a positive effect on tax avoidance. Accounting conservatism has a negative effect on tax avoidance. Capital intensity and sales growth do not have a significant effect on tax avoidance. The study also found that the variation of the independent variables could explain 21% of the variation in tax avoidance. This research is expected to be used as a reference for the government to establish policies that can minimize tax avoidance actions in the future.