THE EFFECT OF CAPITAL INTENSITY, OPERATING CASH FLOW, GROWTH, LEVERAGE, AND PROFITABILITY ON TAX AVOIDANCE BEFORE AND DURING COVID-19

Abstract

This research aims to analyze the influence of several variables on tax avoidance in property and real estate companies listed on the Indonesia Stock Exchange during the 2017–2023 period. The variables analyzed include capital intensity, operating cash flow, growth, leverage, and profitability. This research shows that operating cash flow, growth, leverage, and profitability significantly affect corporate tax avoidance, while capital intensity does not have a significant influence. These results are consistent with several previous studies, which state that companies with high operating cash flow and leverage ratios tend to engage in higher tax avoidance. The control variable used in this research is company size, which also affects the research results. By understanding these factors, companies can be more aware of the variables that may influence their tax avoidance strategies, and policymakers can design more effective policies to reduce tax avoidance practices.