THE EFFECT OF PROFITABILITY AND INSTITUTIONAL OWNERSHIP TAX AVOIDANCE WITH LEVERAGEAS MODERATING VARIABLES

Christina Sofi Yuslianwati, Moh. Ubaidillah, Nik Amah

Abstract


This study aims to analyze the effect of profitability and institutional ownership on tax avoidance, with leverage as a moderating variable, in manufacturing companies belonging to the basic and chemical industry subsectors listed on the Indonesia Stock Exchange. A total of 34 companies were selected from a population of 96 companies through a purposive sampling technique based on certain criteria. Secondary data Translated from Indonesian to English - www.onlinedoctranslator.com were obtained from the companies' annual reports and official websites and analyzed using Moderated Regression Analysis (MRA) with the help of SPSS version 24 software. The results showed that profitability and institutional ownership had a significant negative effect on tax avoidance. This means that the higher the level of profitability and institutional ownership, the lower the level of tax avoidance by the company. However, leverage was unable to moderate the relationship between profitability and tax avoidance. Conversely, leverage was shown to have a role in moderating the relationship between institutional ownership and tax avoidance.


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References


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