Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size
This study aims to analyze the effect of sales growth, capital intensity, and debt to equity ratio on tax avoidance with firm size as a moderating variable. This quantitative research focused on seventeen food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 201...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Institute of Industry and Academic Research Incorporated
2024-12-01
|
| Series: | International Journal of Academe and Industry Research |
| Subjects: | |
| Online Access: | https://iiari.org/journal_article/effect-of-sales-growth-capital-intensity-and-debt-to-equity-ratio-on-tax-avoidance-as-moderated-by-firm-size/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832583382065741824 |
|---|---|
| author | Peter Winarta Matondang Elsa Siburian Enda Noviyanti Simorangkir Wilsa Road Betterment Sitepu |
| author_facet | Peter Winarta Matondang Elsa Siburian Enda Noviyanti Simorangkir Wilsa Road Betterment Sitepu |
| author_sort | Peter Winarta |
| collection | DOAJ |
| description | This study aims to analyze the effect of sales growth, capital intensity, and debt to equity ratio on tax avoidance with firm size as a moderating variable. This quantitative research focused on seventeen food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Data were analysed using Structural Equation Modelling with a Partial Least Square approach. The findings revealed that sales growth and debt to equity ratio do not significantly impact tax avoidance, while capital intensity does. Additionally, firm size does not moderate the relationship between sales growth or debt to equity ratio and tax avoidance but strengthens the effect of capital intensity on tax avoidance. These results offer valuable insights for financial management within the sector, highlighting the importance of strategic asset management in reducing tax burdens. The study’s findings suggest that regulators may need to refine tax policies to address the nuanced effects of capital investment on tax avoidance behaviors, especially in large firms. |
| format | Article |
| id | doaj-art-e330e4d304e040e2945b83ca82812322 |
| institution | Kabale University |
| issn | 2719-0617 2719-0625 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Institute of Industry and Academic Research Incorporated |
| record_format | Article |
| series | International Journal of Academe and Industry Research |
| spelling | doaj-art-e330e4d304e040e2945b83ca828123222025-01-28T16:58:26ZengInstitute of Industry and Academic Research IncorporatedInternational Journal of Academe and Industry Research2719-06172719-06252024-12-015412210.53378/ijair.353108Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm sizePeter Winarta0Matondang Elsa Siburian1Enda Noviyanti Simorangkir2Wilsa Road Betterment Sitepu3Faculty of Business & Economics, Universitas Prima Indonesia, Medan, North Sumatra, IndonesiaFaculty of Business & Economics, Universitas Prima Indonesia, Medan, North Sumatra, IndonesiaFaculty of Business & Economics, Universitas Prima Indonesia, Medan, North Sumatra, IndonesiaFaculty of Business & Economics, Universitas Prima Indonesia, Medan, North Sumatra, IndonesiaThis study aims to analyze the effect of sales growth, capital intensity, and debt to equity ratio on tax avoidance with firm size as a moderating variable. This quantitative research focused on seventeen food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Data were analysed using Structural Equation Modelling with a Partial Least Square approach. The findings revealed that sales growth and debt to equity ratio do not significantly impact tax avoidance, while capital intensity does. Additionally, firm size does not moderate the relationship between sales growth or debt to equity ratio and tax avoidance but strengthens the effect of capital intensity on tax avoidance. These results offer valuable insights for financial management within the sector, highlighting the importance of strategic asset management in reducing tax burdens. The study’s findings suggest that regulators may need to refine tax policies to address the nuanced effects of capital investment on tax avoidance behaviors, especially in large firms.https://iiari.org/journal_article/effect-of-sales-growth-capital-intensity-and-debt-to-equity-ratio-on-tax-avoidance-as-moderated-by-firm-size/sales growthcapital intensitydebt to equity ratiotax avoidance |
| spellingShingle | Peter Winarta Matondang Elsa Siburian Enda Noviyanti Simorangkir Wilsa Road Betterment Sitepu Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size International Journal of Academe and Industry Research sales growth capital intensity debt to equity ratio tax avoidance |
| title | Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size |
| title_full | Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size |
| title_fullStr | Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size |
| title_full_unstemmed | Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size |
| title_short | Effect of sales growth, capital intensity and debt to equity ratio on tax avoidance as moderated by firm size |
| title_sort | effect of sales growth capital intensity and debt to equity ratio on tax avoidance as moderated by firm size |
| topic | sales growth capital intensity debt to equity ratio tax avoidance |
| url | https://iiari.org/journal_article/effect-of-sales-growth-capital-intensity-and-debt-to-equity-ratio-on-tax-avoidance-as-moderated-by-firm-size/ |
| work_keys_str_mv | AT peterwinarta effectofsalesgrowthcapitalintensityanddebttoequityratioontaxavoidanceasmoderatedbyfirmsize AT matondangelsasiburian effectofsalesgrowthcapitalintensityanddebttoequityratioontaxavoidanceasmoderatedbyfirmsize AT endanoviyantisimorangkir effectofsalesgrowthcapitalintensityanddebttoequityratioontaxavoidanceasmoderatedbyfirmsize AT wilsaroadbettermentsitepu effectofsalesgrowthcapitalintensityanddebttoequityratioontaxavoidanceasmoderatedbyfirmsize |