The Effect of Profitability, Capital Intensity Ratio and Leverage on Effective Tax Rates (Empirical Study on Healthcare Sub-Sector Manufacturing Companies Listed on The Indonesia Stock Exchange for the 2017-2020 Period)

Abstract

This study was conducted to prove whether profitability, capital intensity ratio and leverage can affect the effective tax rate in the health sector. This study uses a quantitative approach, with data analysis methods using multiple linear regression analysis and tested using SPSS version 25. The population of this study was 24 health sub-sector companies and the sample collected was 60 health sub-sector company data for the 2017 -2020 period using non-probability sampling method with purposive sampling technique. The results of this study are Profitability (Return On Assets) and Capital Intensity Ratio (CIR) has a positive effect on Effective Tax Rates (ETR) and Leverage (Debt To Equity Ratio) has a negative effect on the Effective Tax Rate (ETR).

Keywords: Profitability, Capital Intensity Ratio and Leverage on Effective Tax Rates

DOI: 10.7176/RJFA/14-8-01

Publication date: April 30^th 2023