The moderating role of firm size in the relationship between financial performance and tax avoidance
This study examines the influence of leverage, profitability, and profit growth on tax avoidance, with firm size as a moderating variable. Using a quantitative approach, the research analyzes sixteen health sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2019–2023. Th...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Institute of Industry and Academic Research Incorporated
2025-06-01
|
| Series: | International Journal of Academe and Industry Research |
| Subjects: | |
| Online Access: | https://iiari.org/journal_article/the-moderating-role-of-firm-size-in-the-relationship-between-financial-performance-and-tax-avoidance/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This study examines the influence of leverage, profitability, and profit growth on tax avoidance, with firm size as a moderating variable. Using a quantitative approach, the research analyzes sixteen health sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2019–2023. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that leverage and profit growth do not significantly affect tax avoidance, while profitability has a positive and significant effect. Furthermore, firm size does not moderate the relationship between leverage, profitability, and profit growth on tax avoidance. These results highlight that internal financial indicators may influence tax avoidance behavior more directly than organizational scale. Beyond regulatory implications, the findings underscore the importance for firms to align financial performance with ethical tax practices, and for stakeholders to consider non-size-related factors when evaluating corporate tax behavior. |
|---|---|
| ISSN: | 2719-0617 2719-0625 |