Analysis of the Effect of Operational Profitability and Debt to Asset Ratio (DAR), Debt to Equity (DER) on Tax Avoidance. Empirical studies on Food and Beverage Sub-sector Manufacturing Industry companies are listed on the Stock Exchange in 2014-2017

Abstract

This study aims to find out and test the effect of Profitability with Proxy Return on Assets (ROA), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER) to Tax Avoidance with research samples to be tested in population research are manufacturing companies listed on the Jakarta Stock Exchange with sub Food and beverages from 2014 to 2017 through secondary data collection collected from the company's financial statements. The method used in selecting samples is purposive sampling. The basic criteria for sampling companies used are: (1) Food and Beverage sub-manufacturing companies listed on the Jakarta Stock Exchange from 2014 to 2017. (2). Companies that publish financial statements from the year under study. The reason for choosing food and beverage sector manufacturing companies is because the achievement of tax revenues from this sector every year has fluctuated or fluctuated, and companies in this sector have survived in the current economic crisis. The data obtained is processed by multiple linear regression analysis using SPSS statistical tools, with the output target to be achieved in this study can be published in international journals. Based on the results of the analysis and discussion that has been done, it can be concluded that profitability is partially Profitability has a significant influence on tax avoidance. Partially Debt to Asset Ratio (DAR) Debt to Asset Ratio (DAR) has a significant influence on tax avoidance. Debt to Equity (DER) partially Debt to Equity (DER) does not have a significant effect on tax avoidance. Simultaneously that there is an influence between Profitability, Debt to Asset Ratio (DAR), and Debt to Equity (DER) on Tax Avoidance in the Food and Beverage Sub-Sector Manufacturing Industry company listed on the Stock Exchange in 2014-2017.

Key Word: Profitability of Return on Assets (ROA), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Tax Avoidance

DOI: 10.7176/EJBM/11-16-13

Publication date:June 30th 2019