THE EFFECT OF PROFITABILITY, CAPITAL INTENSITY, COMPANY SIZE, INSTITUTIONAL OWNERSHIP, AND CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE TAX AVOIDANCE

Abstract

Tax-related state income plays a significant part in funding state spending. The government is working to maximize tax income, but tax avoidance practices have prevented it from reaching. The effective tax rate (ETR) was used in this study to calculate tax avoidance. The objective of this study is to gather empirical data on the relationship between tax avoidance and variables such as profitability, capital intensity, company size, institutional ownership, and corporate social responsibility. This study was done at mining companies listed on the Indonesia Stock Exchange between 2017 and 2021. Purposive sampling was used to determine the sample size, yielding 55 samples. Data were evaluated using multiple linear regression analysis with specific criteria, and up to 11 companies were found to fit the bill. This study's results indicate that profitability has a positive effect on tax avoidance, while capital intensity, company size, institutional ownership, and corporate social responsibility have no effect on tax avoidance.