PENGARUH KONSERVATISME AKUNTANSI, UKURAN PERUSAHAAN, DAN LEVERAGE TERHADAP TAX AVOIDANCE PADA PERUSAHAAN YANG TERDAFTAR DI BEI

Abstract

This research aimed to analyze and examine the effect of accounting conservatism, firm size, and leverage on tax avoidance of pulp and paper manufacturing companies listed on the Indonesia Stock Exchange. The research was quantitative. Moreover, the data collection technique used purposive sampling. In line with that, there were 7 Pulp and Paper manufacturing companies during 2015-2020 as the sample. Furthermore, the data analysis technique used multiple linear regression. Tax avoidance was measured by Effective Tax Rate, accounting conservatism was measured by conservatism level, firm size was measured by SIZE, and leverage was measured by Debt to Equity Ratio. The result showed that: 1) accounting conservatism had a positive and significant effect on tax avoidance. This meant the higher the level of accounting conservatism was, the higher the level of tax avoidance in the company would be; 2) firm size had a negative and significant effect on tax avoidance). It happened to the companies’ tendency, especially in large companies to have fairly good management; 3) leverage had a significantly negative effect on tax avoidance since the addition to the amount of debt owned by the company will add to the interest expense that needs to be paid by the company.