Abstract:
This research aims to investigate the influence of tax avoidance and
profitability towards corporate cash holding by considering two conditions, which
are in domestic companies and multinational companies. The sample that used in
this study are 58 manufacturing companies (19 domestic companies and 39
multinational companies) listed in Indonesia Stock Exchange (IDX) for the period
0f 2015-2018. The methodology employed in this study is panel data regression
analysis for analyzing data. Result shows that tax avoidance using a proxy of ETR
does not influence cash holding both in domestic and multinational companies.
Meanwhile, profitability with a proxy of ROA reveals the significant influence
toward cash holding both in domestic and multinational companies.
