Analysis of Factors That Influence Tax Avoidance in the Food and Beverage Industry

Menik Indrati; Wulandari Agustiningsih; Eny Purwaningsih; Ika Baskara

doi:10.55681/jige.v5i1.2392

Authors

Menik Indrati Accounting Study Program, Universitas Esa Unggul, Indonesia
Wulandari Agustiningsih Accounting Study Program, Universitas Esa Unggul, Indonesia
Eny Purwaningsih Accounting Study Program, Universitas Esa Unggul, Indonesia
Ika Baskara Accounting Study Program, Universitas Esa Unggul, Indonesia

DOI:

https://doi.org/10.55681/jige.v5i1.2392

Keywords:

tax avoidance, food and beverage industry, board of directors, company profitability, company size

Abstract

This study aims to investigate the influence of internal factors on tax avoidance in the food and beverage industry in Indonesia. Variables such as the presence of a Board of Directors, Female Directors, company profitability, laverage and company size are analyzed for the company's tendency to avoid taxes. Data collection was carried out from the financial reports of food and beverage subsector companies listed on the Indonesia Stock Exchange during the 2019-2022 period. Multiple linear regression analysis is used to test the relationship between the independent variable and the dependent variable. The results show that the Board of Directors, profitability, and company size significantly influence tax avoidance in the food and beverage industry. The implications of these findings guide practitioners in designing effective tax strategies to optimize company performance.

Downloads

Download data is not yet available.

References

Aburajab, L., Maali, B., Jaradat, M., & Alsharairi, M. (2019). Board of directors’ characteristics and tax aggressiveness: Evidence from Jordanian listed firms. Theoretical Economics Letters, 9(7), 2732–2745.

Alkurdi, A., & Mardini, G. H. (2020). The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan. Journal of Financial Reporting and Accounting, 18(4), 795–812.

Anggraeni, D. P., & Kurnianto, S. (2020). The effect of board size and female directors on tax avoidance. International Journal of Innovation, Creativity and Change, 13(8), 1127–1141.

Ardiansyah, M. N., Zulaihati, S., & Mardi, M. (2023). The Effect Of Independent Commissioners, Company Size And Profitability On Tax Avoidance In Companies Listed In The Idx80 Index Of The Indonesia Stock Exchange. International Journal of Multidisciplinary Research and Literature, 2(1), 87–97.

Budi, P. N. (2019). The role of gender diversity on the board of directors and tax avoidance. Russian Journal of Agricultural and Socio-Economic Sciences, 87(3), 107–115.

Damayanty, P., & Putri, T. (2021). The Effect of Corporate Governance on Tax Avoidance by Company Size as The Moderating Variable.

Fauzan, F., Arsanti, P. M. D., & Fatchan, I. N. (2021). The Effect of Financial Distress, Good Corporate Governance, and Institutional Ownership on Tax Avoidance. Riset Akuntansi Dan Keuangan Indonesia, 6(2), 154–165.

Hamilah, H. (2020). The effect of commissioners, profitability, leverage, and size of the company to submission timeliness of the financial statements tax avoidance as an intervening variable. Systematic Reviews in Pharmacy, 11.

Hoseini, M., Safari Gerayli, M., & Valiyan, H. (2019). Demographic characteristics of the board of directors’ structure and tax avoidance: Evidence from Tehran Stock Exchange. International Journal of Social Economics, 46(2), 199–212.

Idzniah, U. N. L., & Bernawati, Y. (2020). Board of directors, audit committee, executive compensation and tax avoidance of banking companies in indonesia. JASF, 3(2), 199–213.

Iwanty, K. I., & Surjandari, D. A. (2022). The effect of sales growth, responsibility, and institutional ownership on tax avoidance with profitability as moderating variables. Journal of Economics, Finance and Accounting Studies, 4(1), 423–436.

Kalbuana, N., Taqi, M., Uzliawati, L., & Ramdhani, D. (2023). CEO narcissism, corporate governance, financial distress, and company size on corporate tax avoidance. Cogent Business & Management, 10(1), 2167550.

Khaoula, F., & Moez, D. (2019). The moderating effect of the board of directors on firm value and tax planning: Evidence from European listed firms. Borsa Istanbul Review, 19(4), 331–343.

Kholifah, A. N., Nurlaela, S., & Shamrotun, Y. C. (2023). Effect of Profitability, Leverage, Company Size and Independent Commissioner on Tax Avoidance. UMMagelang Conference Series, 977–988.

Listiyana, M., Zulfiati, L., & Husen, S. (2019). The Effect of Corporate Governance on Tax Avoidance Behavior. Indonesian Journal of Business, Accounting and Management, 2(01), 38–46.

Margaret, R., & Simanjuntak, T. H. (2020). The Effect of Profitability, Company Size, And Female Director Composition on Tax Avoidance: Evidence from Indonesia. Asian Journal of Management Sciences & Education, 9(2), 54–62.

Marsahala, Y. T., Arieftiara, D., & Lastiningsih, N. (2020). Profitability, capital intensity and tax avoidance in Indonesia: The effect board of commissioners’ competencies. Journal of Contemporary Accounting, 129–140.

Nazara, D. S., Metekohy, S., Nurhab, M. I., Yandari, A. D., & Setiawan, R. (2023). The Role of Company Size as a Moderating Variable in the Relationship Between Tax Avoidance, Political Connections and Corporate Governance. Journal of Economic, Bussines and Accounting (COSTING), 6(2), 2228–2243.

Nengzih, N. (2019). The Influence of Corporate Governance, Tax Avoidance, Leverage, and Company Size to Earnings Management: Empirical Study from Indonesia’s Banking Companies 2015-2017. Journal of Economics and Business, 5(1), 1–8.

Novita, E. S., & Herliansyah, Y. (2019). The effect of corporate governance mechanism, liquidity and company size on tax avoidance. Saudi Journal of Economics and Finance, 3(10), 366–373.

Noviyani, R., & Damayanty, P. (2024). The Effect Of Good Corporate Governance, Leverage, And Company Size On Tax Avoidance. Journal of Economic, Bussines and Accounting (COSTING), 7(2), 2433–2443.

Palupi, W. S., Hidayah, N., & Septyanto, T. (2020). Analysis Of The Effect Of Good Corporate Governance, Company Profitability And Risk On Tax Avoidance. Fokus Bisnis: Media Pengkajian Manajemen Dan Akuntansi, 19(2), 130–143.

Panjaitan, A., Maksum, A., & Abubakar, E. (2021). The influence of corporate social responsibility, corporate characteristic, family ownership, profitabilitas and corporate governance on tax avoidance. Jurnal Mantik, 4(4), 2331–2335.

Peter, Z., Hamid, T. K., & Ibrahim, M. (2020). BOARD ATTRIBUTES AND TAX PLANNING OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA. International Journal of Accounting & Finance (IJAF), 9(1).

Pratama, A. (2017). Company characteristics, corporate governance and aggressive tax avoidance practice: A study of Indonesian companies. Review of Integrative Business and Economics Research, 6(4), 70.

Rakia, R., Kachouri, M., & Jarboui, A. (2023). The moderating effect of women directors on the relationship between corporate social responsibility and corporate tax avoidance? Evidence from Malaysia. Journal of Accounting in Emerging Economies.

Rosalin, R. F., & Chrismastuti, A. A. (2023). The Impact of Company Growth, Size, Profitability, and Leverage on Tax Avoidance with Good Corporate Governance as a Moderating Variable. Jurnal Informatika Ekonomi Bisnis, 950–958.

Sopian, D., Laelasari, W., & Dewi, I. P. (2023). THE EFFECT OF PROFITABILITY, EXECUTIVE CHARACTER AND COMPANY SIZE ON TAX AVOIDANCE. International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC), 1(6), 872–881.

Sunarto, S., Widjaja, B., & Oktaviani, R. M. (2021). The effect of corporate governance on tax avoidance: The role of profitability as a mediating variable. The Journal of Asian Finance, Economics and Business, 8(3), 217–227.

Watson, R. (2015). Quantitative research. Nursing Standard, 29(31).

Wen, W., Cui, H., & Ke, Y. (2020). Directors with foreign experience and corporate tax avoidance. Journal of Corporate Finance, 62, 101624.

Widyastuti, S. M., Meutia, I., & Candrakanta, A. B. (2022). The effect of Leverage, Profitability, Capital Intensity and Corporate Governance on Tax Avoidance. Integrated Journal of Business and Economics, 6(1), 13–27.

Yahaya, K. A., & Yusuf, K. (2020). Impact of company characteristics on aggressive tax avoidance in Nigerian listed insurance companies. Jurnal Administrasi Bisnis, 9(2), 101–111.

Zemzem, A., & Ftouhi, K. (2013). The effects of board of directors’ characteristics on tax aggressiveness. Research Journal of Finance and Accounting, 4(4), 140–147.