The Effect of Profitability, Leverage, and Transfer Pricing on Tax Avoidance, with Company Size as a Moderating Variable (For Food and Beverage Companies on the IDX, 2020–2024)

Lalu Patriawan Alwih; Ronny Andesto

doi:10.55927/ijbae.v5i1.572

Authors

Lalu Patriawan Alwih Universitas Mercu Buana
Ronny Andesto Universitas Mercu Buana

DOI:

https://doi.org/10.55927/ijbae.v5i1.572

Keywords:

Profitability, Leverage, Transfer Pricing, Company Size, and Tax Avoidance

Abstract

This study aims to empirically demonstrate the influence of profitability, leverage, transfer pricing, and company size on tax avoidance. Furthermore, it also demonstrates that company size moderates the relationship between profitability, leverage, and transfer pricing with tax avoidance. This study was conducted on 70 primary consumer sector companies consistently listed on the Indonesia Stock Exchange (IDX) for the 2020-2024 period. Moderating Regression Analysis (MRA) was used as the analytical method. The results of the hypothesis testing revealed that the higher a company's profit-generating ability, the higher its tax avoidance practices. Our research found that leverage, transfer pricing policies, and company size did not influence changes in the company's tax avoidance practices. Furthermore, our research found that company size did not moderate the relationship between profitability, leverage, and transfer pricing with tax avoidance practices in primary consumer sector companies listed on the Indonesia Stock Exchange.

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