The Effect of Profitability, Leverage and Financial Distress on Tax Avoidance (Case Study of Food And Beverage Sector Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019-2023)
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Abstract
The purpose of this research is to ascertain how tax evasion is impacted by profitability, leverage, and financial hardship. Research of this kind is quantitative in nature. The manufacturing enterprises in the food and beverage sector that are listed on the Indonesia Stock Exchange between 2019 and 2023 comprise the study's population. Purposive sampling was the method of sampling that was applied. 110 firm data samples made up the study's sample size. Using the IBM SPSS 27 application, the following data analysis techniques were applied: multiple linear regression analysis, classical assumption testing, data normality testing, descriptive analysis, and hypothesis testing. Profitability and financial distress have a partial impact on tax avoidance, while leverage has no partial effect, according to the results of the T test hypothesis test. However, the F test hypothesis test produced significant results, yielding a significant value of 0.021, which <0.05. H0 is rejected and H4 is approved because (significance value <0.05 = 0.021 <0.05) and (Fcount> Ftable = 3.392> 2.69). This indicates that the dependent variable, tax avoidance, is simultaneously impacted by the independent variable (X), namely profitability, leverage, and financial distress.
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