Year: 2024 | Month: March | Volume: 11 | Issue: 3 | Pages: 410-426
DOI: https://doi.org/10.52403/ijrr.20240350
Effect of Related Party Transaction, Profitability, Leverage, and Capital Intensity on Tax Avoidance with Firm Size as a Moderating Variable in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange 2018-2022
Keristiani Br Sembiring1, Rina Br Bukit2, Prihatin Lumbanraja3
1,2,3Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Keristiani Br Sembiring
ABSTRACT
This research aims to determine and test the influence of related party transaction receivables, related party transaction debt, profitability, leverage, and capital intensity on tax avoidance in food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2022 period and to test whether Firm size can moderate the relationship between the independent variable and the dependent variable. The population in this study was 26 companies. The sampling method uses purposive sampling, and the number of observation samples is 130 companies. This type of research is quantitative descriptive by testing classical assumptions and Multiple Regression Analysis (MRA) testing, which uses two regression equations. The analysis technique used is with SPSS software tools. This research shows that profitability, leverage, and capital intensity positively and significantly affect tax avoidance.
Meanwhile, related party transactions receivables and associated party transactions accounts payable do not affect tax avoidance. The variable firm size can moderate the relationship between the influence of related party transactions on debt, profitability, leverage, and capital intensity on tax avoidance. The firm size variable cannot moderate the relationship between the influence of related party transaction receivables on tax avoidance.
Keywords: tax avoidance, firm size, related party transactions, leverage, profitability, and capital intensity
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