Jesslyn Felicia, Jennifer Octavia, Elvira Engelyne, Veronika

ANALYSIS OF FACTORS AFFECTING TAX AVOIDANCE WITH LEVERAGE AS A MEDIATION VARIABLE IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2019-2021 PERIOD

Introduction

Analysis of factors affecting tax avoidance with leverage as a mediation variable in manufacturing companies listed on the indonesia stock exchange for the 2019-2021 period. Analyzes factors influencing tax avoidance in Indonesian manufacturing companies (2019-2021 IDX). Examines company size, profitability, sales growth, institutional ownership, and capital entities, with leverage as a mediation variable.

Abstract

This study aims to analyze the factors that influence tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX). The factors that are the focus of this study include company size, leverage, profitability, sales growth, institutional ownership, and capital entities. Leverage is identified as a mediating variable in the relationship between these factors and tax avoidance. The population in this study were 398 companies. The sampling method used was purposive sampling and obtained 35 companies that became the object of research. The research data was obtained from the financial reports of manufacturing companies listed on the Indonesia Stock Exchange for the 2019-2021 period.

Review

This study, titled "ANALYSIS OF FACTORS AFFECTING TAX AVOIDANCE WITH LEVERAGE AS A MEDIATION VARIABLE IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2019-2021 PERIOD," addresses a highly relevant and critical area of corporate finance and taxation. The investigation into the factors influencing tax avoidance, specifically within the manufacturing sector in Indonesia, provides important insights given the sector's economic significance and the ongoing global discourse on corporate tax contributions. The proposition of leverage as a mediating variable is particularly interesting, suggesting a more complex and indirect pathway through which corporate characteristics might influence tax avoidance strategies, thereby enriching the current understanding of this phenomenon. From a methodological standpoint, the study identifies a comprehensive set of independent variables, including company size, profitability, sales growth, institutional ownership, and "capital entities." While these variables are commonly explored in tax avoidance research, further clarification on the operationalization of "capital entities" would be beneficial in the full paper. The selection of a sample of 35 companies via purposive sampling from a population of 398 manufacturing firms listed on the IDX, over a three-year period (2019-2021), is noted. The significant reduction from population to sample warrants a robust justification in the complete manuscript regarding the criteria for selection and how representativeness is maintained, especially when drawing conclusions applicable to the broader sector. A notable absence from the abstract is the specific analytical technique employed to test the direct and mediating relationships, which is crucial for evaluating the rigor of the research design. In conclusion, this research holds significant potential to contribute to both academic literature and practical understanding of corporate tax behavior in Indonesia. The inclusion of leverage as a mediating factor promises a more nuanced examination of the determinants of tax avoidance. The forthcoming full paper should rigorously detail the chosen analytical methodology for testing mediation effects, provide clear definitions and measurements for all variables, and thoroughly discuss the implications of the sample selection. Should these aspects be well-addressed, the study's findings will be valuable for regulators, investors, and corporate managers seeking to understand and navigate the complexities of tax avoidance within the dynamic Indonesian market.

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