PENGARUH DEBT TO EQUITY, RETURN ON ASSETS, DAN CAPITAL INTENSITY TERHADAP TAX AVOIDANCE

Abstract

This research aimed to examine the factors which affect company’s tax avoidance. While, there were several
factors related to the tax avoidance, namely debt to equity (DE), return on assets (ROA), and capital intensity.
Therefore, this research aimed to examine empirically whether DE, ROA, and capital intensity affected the tax
avoidance. Mainwhile, capital intensity was measured by fix assets intensity and tax avoidance was measured by
effective tax rate. The research was quantitative. Moreover, the population was 22 consumer goods companies,
which were listed on Indonesia Stock Exchange 2016-2018. Furthermore, the data collection technique used
purposive sampling method in which the sample was based on criteria given. In line with, there were 66 samples.
In addition, the data analysis technique used multiple regression with SPSS 23. The research results concluded
debt to equity had a positive effect on tax avoidance. In contrast, return on assets did no effect tax avoidance. On
the other hand, capital intensity had negative effect on tax avoidance. In short, there was still limitation in this
research, i.e. only 24.4% the effect of independent variables on the dependent variable. Thus, it required to add
other independent variable such as size.
Keywords: DE, ROA, capital intensity, tax avoidance