The Effect of Good Corporate Governance, Profitability, Capital Intensity, and Leverage on Tax Avoidance During the Covid-19 Pandemic

Abstract

This study aims to test and analyze the influence of good corporate governance proxied by indicators of independent commissioners (KI), institutional ownership (INST), Profitability (ROA), Capital Intensity (CI), and Leverage (DER) on Tax Avoidance during the Covid-19 pandemic. The dependent variable of this study is Tax Avoidance measured using ETR. This type of research is quantitative by using secondary data on annual financial statements. The population in the study amounted to 53 enterprises. Sampling using purposive sampling technique. Data analysis in this study uses quantitative analysis. The object of this study is a manufacturing company in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2020-2021. Data analysis was carried out by classical assumption testing and hypothesis testing with multiple regression methods using the help of SPSS 25 software. The purpose of conducting this research is based on increasing competition from each company which requires companies to compete in improving achievements in the company. What distinguishes the study from the previous study is that this study uses data during the pandemic in 2020-2021. Where during the pandemic it has an influence on the Indonesian economic sector. There are several limitations experienced by researchers during the research process, namely in the data tabulation process and during the data processing process. Suggestions for similar research are recommended to test the Variable Tax Avoidance, with CETR (Cash Effective Tax Rate). The goal is to show the difference in results between the measurement of ETR (Effective Tax Rate) and the measurement of CETR (Cash Effective Tax Rate) and needs to add other variables that can allow it to provide results that are more influential on Tax Avoidance actions during a pandemic, for example Corporate Social Responsibility.

Keywords:Independent Board of Commissioners, Institutional Ownership, Profitability, Capital Intensity, Leverage, and Tax Avoidance, price earning ratio, profitability,Dividend Payout Ratio captital structure, company value, moderated

DOI: 10.7176/EJBM/14-18-04

Publication date:September 30^th 2022