The Role of Profitability in Moderating Political Connections, Corporate Risk, Leverage and Firm Size to Tax Avoidance


Peran Profitabilitas Dalam Memoderasi Koneksi Politik, Risiko Perusahaan, Leverage dan Ukuran Perusahaan Terhadap Penghindaran Pajak


  • (1) * Lala Latifatul            UnivesitasMuhammadiyah Semarang  
            Indonesia

  • (2)  Ida Kristiana            Universitas Muhammadiyah Semarang  
            Indonesia

  • (3)  Ayu Noviani Hanum            Universitas Muhammadiyah Semarang  
            Indonesia

    (*) Corresponding Author

Abstract

This study examines the effect of political connection, corporate risk, leverage, and firm size on tax avoidance with profitability as a moderating variable. The data used are annual financial reports of food and beverage registered in the Indonesia Stock Exchange (IDX) for the 2018-2021. The sample used was 99 companies, obtained using a purposive sampling technique. The data analysis used is Multiple Linear Regression and Moderated Regression Analisis (MRA). In this study, there is a novelty, namely the addition of profitability as a moderating variable, because, in previous studies, the use of moderation with the same independent and dependent variables was not found in this study. The result of this study shows that political connection, corporate risk, and firm size do not affect tax avoidance. Meanwhile, leverage has a significant positive effect on tax avoidance. In addition, profitability can moderate the effect of firm size on tax avoidance. However, profitability cannot moderate the effect of political connection, corporate risk, and leverage on tax avoidance. Based on these results, the implication of this study is that leverage in companies must be considered because the greater the level of corporate leverage, the lower the tax burden borne by the company so that debt becomes a management priority to avoid a larger tax burden. Therefore, the greater the leverage ratio, the greater the level of corporate tax avoidance. Likewise, profitability can moderate the effect of company size on tax avoidance must also be considered because the larger the size will enable the company to earn high profits. The firm value will also increase, so the company can control tax avoidance.

 

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Ahmad, E. F. (2020). Pengaruh Return On Asset, LEeverage, Ukuran Perusahaan, Kompenasi Rugi Fiskal dan Koneksi Politik Terhadap Tax Avoidance (Studi pada Sektor Industri Barang Konsumsi yang terdaftar di Bursa Efek Indonesia PeriodeTahun 2013-2017). JAKSI: Jurnal Akuntansi Dan Sistem Informasi, 1(1), 12–27. https://doi.org/10.31949/j-aksi.v1i1.172

Alfina, I. T., Nurlaela, S., & Wijayanti, A. (2018). The Influence of Profitability, Leverage, Independent Commissioner, and Company Size to Tax Avoidance. Konferensi Internasional Tentang Teknologi, Pendidikan, Dan Ilmu Sosial, 2018(10), 102–106.

Ariska, M., Fahru, M., & Kusuma, J. W. (2020). Leverage , Ukuran Perusahaan dan Profitabilitas dan Pengaruhnya Terhadap Tax Avoidance pada Perusahaan Sektor Pertambangan di Bursa Efek Indonesia Tahun 2014- 2019. Jurnal Revenue : Jurnal Ilmiah Akuntansi, 01(01), 133–142.

Ayem, S., & Tarang, T. M. D. (2021). Pengaruh Risiko Perusahaan, Kepemilikan Institusional, Dan Strategi Bisnis Terhadap Tax Avoidance. Jurnal Riset Akuntansi Dan Keuangan, 17(2), 91.

https://doi.org/10.21460/jrak.2021.172.400

Darmayanti, P. P. B., & Merkusiwati, N. K. L. A. (2019). Pengaruh Ukuran Perusahaan, Profitabilitas, Koneksi Politik dan Pengungkapan Corporate Social Responsibility Pada Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 26(3), 1992–2019. https://doi.org/10.24843/eja.2019.v26.i03.p12

Darsani, P. A., & Sukartha, I. M. (2021). The Effect of Institutional Ownership, Profitability, Leverage and Capital Intensity Ratio on Tax Avoidance. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 13–22. https://www.ajhssr.com/wp-content/uploads/2021/01/C215011322.pdf

Handayani, M. F., & Mildawati, T. (2018). Pengaruh Probilitas, Leverage, dan Ukuran Perusahaan terhadap Penghindaran Pajak. Jurnal Ilmu Dan Riset Akuntansi, Volume 7(2), 1–16.

Indarti, I., Listiyowati, & Adnanti, W. A. (2019). The Factors Influence To Tax Avoidance With Good Corporate Governance As Moderating Variable. International Conference on Business Economics and Governance (ICBEG), 210–230.

Indonesia. (2019). Undang-Undang Nomor 16 Tahun 2009. Www.Kemenkeu.Go.Id. https://www.kemenkeu.go.id

Kalbuana, N., Solihin, Saptono, Yohana, & Yanti, D. R. (2020). The Influence of Capital Intensity, Firm Size, and Leverage on Tax Avoidance on Companies Registered in Jakarta Islamic Index. International Journal of Economics, Business and Accounting Research (IJEBAR), 4(03), 272–278. https://doi.org/10.29040/ijebar.v4i03.1330

Kartadjumena, E., & Muntazhar, M. M. (2021). Do the Executive Characters and Leverage can affect Tax Avoidance?: Evidence from Indonesia Mining and Coal Listed Companies. Turkish Journal of Computer and Mathematics Education, 12(11), 1418–1425. www.idx.co.id

Khairina, L. N., & Widiastuti, N. P. E. (2021). The Influence Of Political Connection, Capital Intensity And Audit Committee On Tax Avoidance. Proceedings of The 1st Jakarta Economic Sustainable International Conference Agenda (JESICA) THE, 1, 48–63.

Mahdiana, M. Q., & Amin, M. N. (2020). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Dan Sales Growth Terhadap Tax Avoidance. Jurnal Akuntansi Trisakti, 7(1), 127–138. https://doi.org/10.25105/jat.v7i1.6289

Moeljono. (2020). Faktor-Faktor yang Mempengaruhi Penghindaran Pajak. Jurnal Penelitan Ekonomi Dan Bisnis, 5(1), 103–121. https://doi.org/10.33633/jpeb.v5i1.2645

Mulyati, Y., Subing, H. J. T., Fathonah, A. N., & Prameela, A. (2019). Effect of profitability, leverage and company size on tax avoidance. International Journal of Innovation, Creativity and Change, 6(8), 26–35.

Munawaroh, M. A., & Ramdany. (2019). Peran Csr, Ukuran Perusahaan, Karakter Eksekutif Dan Koneksi Politik Terhadap Potensi Tax Avoidance. Jurnal Akuntansi, 8(2), 109–121. https://doi.org/10.37932/ja.v8i2.70

Nainggolan, C. F., & Muhammad, M. M. (2022). Pengaruh Kompensasi Eksekutif, Koneksi Politik, dan Capital Intensity pada Tax Avoidance. Jurnal Mahasiswa Institut Teknologi Dan Bisnis Kalbis, 8(3), 3383–3397. https://doi.org/10.24843/eja.2018.v25.i02.p25

Nurjanah, L., & Masripah. (2022). Peran Komisaris Independen dalam Memoderasi Risiko Perusahaan dan Pertumbuhan Penjualan Terhadap Tax Avoidance. Accounting Student Research Journal, 1(1), 53–73.

Oktivina, A., Masri, I., Susilawati, & Erlangga, A. P. (2020). The Influence of Profitability, Leverage, Company Size and Institutional Ownership with The Gender Diversification Moderation of The Board of Directors on Tax Avoidance. The International Journal of Business Review (The Jobs Review), 3(2), 97–108. https://doi.org/10.17509/tjr.v3i2.30075

Pohan, C. A. (2018). Optimizing corporate tax management: Kajian perpajakan dan tax planning-nya terkini. Bumi Aksara.

Pratiwi, N. P. D., Mahaputra, I. N. K. A., & Sudiartana, I. M. (2020). Pengaruh Financial Distress, Leverage dan Sales Growth terhadap Tax Avoidance Pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2016. Jurnal Kharisma, 2(1), 202–211.

Prihananto, A. D., Nuraina, E., & Sulistyowati, N. W. (2018). Pengaruh Ukuran Perusahaan, Profitabilitas dan Risiko Perusahaan Terhadap Tax Avoidance (Studi Kasus Pada Perusahaan Jasa di BEI). The 11th Forum Ilmiah Pendidikan Akuntansi, 6(2).

Ratu, M. K., & Meiriasari, V. (2021). Analisis Pengaruh Corporate Social Responsibility, Corporate Risk, Capital Intensity Dan Profitability Terhadap Tax Avoidance. Jurnal Ilmiah Ekonomi Global Masa Kini, 12(2), 127–130. https://doi.org/10.36982/jiegmk.v12i2.1525

Rindiani, S. N. R., & Asalam, A. G. (2022). Pengaruh Intensitas Aset Tetap , Kompensasi Rugi Fiskal , dan Koneksi Politik Terhadap Tax Avoidance ( Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia ( Bei ) Tahun 2016-2020 ). SEIKO : Journal of Management & Business, 4(3), 303–312. https://doi.org/10.37531/sejaman.v4i3.2526

Rizky, M., & Puspitasari, W. (2020). Pengaruh Risiko Perusahaan, Intensitas Aset Tetap Dan Ukuran Perusahaan Terhadap Aggressive Tax Avoidance. Jurnal Akuntansi Trisakti, 7(1), 111–126. https://doi.org/10.25105/jat.v7i1.6325

Romadona, R., & Setiyorini, W. (2020). Pengaruh Leverage , Risiko Perusahaan Dan Kepemilikan Institusional Terhadap Tindakan Penghindaran Pajak ( Studi Empiris pada Perusahaan Manufaktur Sektor Logam yang Terdaftar BEI Tahun 2014-2018) Rahadian. Jurnal Ilmiah Bisnis Dan Perpajakan, 2(1), 63–72.

Sadeva, B. S., Suharno, & Sunarti. (2020). Pengaruh Kepemilikan Institusional, Ukuran Perusahaan, Leverage dan Transfer Pricing Terhadap Tax Avoidance (Studi pada Perusahaan Pertambangan yang Terdaftar Dalam Bursa Efek Indonesia Tahun 2014-2018). Jurnal Akuntansi Dan Sistem Teknologi Informasi, 16(1), 89–100.

Sari, D., Wardani, R. K., & Lestari, D. F. (2021). The Effect of Leverage, Profitability and Company Size on Tax Avoidance. Turkish Journal of Computer and Mathematics Education, 12(4), 860–868.

Sawitri, A. P., Alam, W. Y., & Dewi, F. A. A. (2022). Pengaruh Profitabilitas, Pertumbuhan Penjualan, Ukuran Perusahaan Dan Koneksi Politik Terhadap Penghindaran Pajak. Jurnal Riset Akuntansi Mercu Buana, 8(1), 44–52.

Sopiyana, M. (2022). The Effect of Leverage and Firm Size on Tax Avoidance With Profitability As Moderating. Scientific Journal Of Reflection : Economic, Accounting, Management and Business, 5(1), 29–37. https://doi.org/10.37481/sjr.v5i1.422

Tiberias, E., Hutadjulu, F., & Florencia, C. (2021). Pengaruh Hubungan Koneksi Politik, Leverage dan Ukuran Perusahaan Terhadap Penghindaran Pajak (Pada Perusahaan Sektor Pertaniaan yang Terdaftar di Bursa Efek Indonesia Periode 2016-2018). Fundamental Management Journal, 6(1), 45–65.

Vemberain, J., & Triyani, Y. (2021). Analisis Pengaruh Profitabilitas, Ukuran Perusahaan, Leverage, dan kepemilikan institusional terhadap tax avoidance. Jurnal Akuntansi, 10(1), 40–62.

Veronica, E., & Kurnia. (2021a). Pengaruh Beban Pajak Tangguhan, Pertumbuhan Penjualan, Risiko Perusahaan, dan Strategi Bisnis Terhadap Tax Avoidance. 8(1), 86–93.

Veronica, E., & Kurnia. (2021b). Pengaruh Beban Pajak Tangguhan, Pertumbuhan Penjualan, Risiko Perusahaan, dan Strategi Bisnis terhadap Tax Avoidance ( Studi Kasus pada Perusahaan Sektor Industri Barang Konsumsi yang terdaftar di Bursa Efek Indonesia Tahun 2014-2019 ). E-Proceeding of Management, 8(1), 86–93. https://openlibrarypublications.telkomuniversity.ac.id/index.php/manageme nt/article/download/14346/14130

Wati, L. N., Ramdany, & Momon. (2017). Board of commissioner’s effectiveness on politically connected conglomerates: Evidence from Indonesia. Pertanika Journal Socisl Science & Humanities, 25, 255–270.

Windaryani, I. G. A. I., & Jati, I. K. (2020). Pengaruh Ukuran Perusahaan, Kepemilikan Institusional, dan Konservatisme Akuntansi pada Tax Avoidance. E-Jurnal Akuntansi, 30(2), 375. https://doi.org/10.24843/eja.2020.v30.i02.p08

Picture in here are illustration from public domain image (License) or provided by the author, as part of their works
Published
2023-01-27
 
How to Cite
Latifatul, L., Kristiana, I., & Hanum, A. N. (2023). The Role of Profitability in Moderating Political Connections, Corporate Risk, Leverage and Firm Size to Tax Avoidance. Journal of Accounting Science, 7(1), 33-46. https://doi.org/10.21070/jas.v7i1.1681
Section
Tax Accounting