Tax avoidance determinants: the role of dividend policy as moderating variable

Purpose: Tax avoidance, which is a legally permissible strategy that complies with tax regulations, can affect the state's revenue targets; thus, this study investigates the effects of Profitability, Firm Size, Institutional Ownership, and Leverage on Tax Avoidance, moderated by Dividend Polic...

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Bibliographic Details
Main Authors: Tri Ananda Rizky, Fatmawati Zahroh
Format: Article
Language:English
Published: Universitas Muhammadiyah Malang 2024-11-01
Series:Jurnal Akademi Akuntansi
Subjects:
Online Access:https://ejournal.umm.ac.id/index.php/jaa/article/view/37305
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Summary:Purpose: Tax avoidance, which is a legally permissible strategy that complies with tax regulations, can affect the state's revenue targets; thus, this study investigates the effects of Profitability, Firm Size, Institutional Ownership, and Leverage on Tax Avoidance, moderated by Dividend Policy. Methodology/approach: This research uses quantitative data. The sample consists of 10 State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, using purposive sampling techniques, which resulted in 50 data points. The analytical method applied is regression moderation analysis, run using the E-Views version 12 program. Findings: The findings show that Profitability and Institutional Ownership positively affect Tax Avoidance, while Firm Size has a negative impact. Leverage shows no significant effect, with the Dividend Policy moderating the leverage-tax avoidance relationship. Practical and Theoretical contribution/Originality: This study's findings verify the existence of tax avoidance practices carried out in state-owned companies related to dividend policy decisions made by management and contribute to shareholders' consideration of making decisions at the GMS. Research Limitation: This research only focuses on the application of tax avoidance in SOEs and does not compare it with private companies.
ISSN:2715-1964
2654-8321