Analysis of the Influence of Profitability, Leverage, Company Size, and Financial Distress on Tax Avoidance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2024
DOI:
https://doi.org/10.24256/kharaj.v8i1.8677Keywords:
Profitability, Leverage, Company Size, Financial Distress, Tax AvoidanceAbstract
This study aims to analyze the effect of profitability, leverage, company size, and financial distress on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange in 2024. This study uses an explanatory quantitative approach to analyze the influence of profitability, leverage, company size, and financial distress on tax avoidance in manufacturing companies listed on the IDX in 2024. Secondary data in the form of financial reports of 101 manufacturing companies in 2024 were selected using purposive sampling. The analysis was conducted quantitatively using cross-sectional data and processed with E-Views 13 software. The results of this study are that profitability has a positive and significant effect on tax avoidance, leverage also has a positive and significant effect on tax avoidance, company size does not show a significant effect on tax avoidance, and financial distress has a positive and significant effect on tax avoidance
References
Adityaningrum, F., Widyaningrum, M. N., & Mahirun, M. (2024). The Effect of Profitability, Liquidity, Leverage, Firm Size, Operating Capacity, and Retained Earnings Towards Financial Distress: Evidence from Energy Companies. InFestasi, 20(1), Inpress. https://doi.org/10.21107/infestasi.v20i1.23088
Agatharuna, N., & Sofian Suriawinata, I. (2025). The effect of leverage, activity, profitability, growth, and firm size on financial distress Corresponding author. 11(1), 53–68.
Ariyani, H. F., Pangestuti, I. R. D., & Raharjo, S. T. (2019). The Effect Of Asset Structure, Profitability, Company Size, And Company Growth On Capital Structure (The Study of Manufacturing Companies Listed on the IDX for the Period 2013 - 2017). Jurnal Bisnis Strategi, 27(2), 123. https://doi.org/10.14710/jbs.27.2.123-136
Dang, V. C., Tran, X. H., & McMillan, D. (2021). The impact of financial distress on tax avoidance: An empirical analysis of the Vietnamese listed companies. Cogent Business & Management, 8(1). https://doi.org/https://doi.org/10.1080/23311975.2021.1953678
Destiani, I. R., Mayasari, I., Tamara, D. A. D., & Setiawan, S. (2023). Pengaruh CAR, NPF, FDR dan BOPO terhadap Profitabilitas BPRS di Indonesia. Journal of Applied Islamic Economics and Finance, 3(2), 356–372. https://doi.org/10.35313/jaief.v3i2.3766
Dirman, A. (2020). Financial Distress: The Impact of Profitability, Liquidity, Leverage, Firm Size, and Free Cash Flow. International Journal of Business, Economics and Law, 22(1), 1.
Fadhila, N., & Andayani, S. (2022). Pengaruh Financial Distress, Profitabilitas, dan Leverage terhadap Tax Avoidance. Owner : Riset Dan Jurnal Akuntansi, 6(4), 3489–3500. https://doi.org/https://doi.org/10.33395/owner.v6i4.1211
Fatimah, K., & Jariah, A. (2024). The Role of Profitability, Leverage, and Liquidity in Efforts to Minimize Financial Distress. The 5th International Conference on Economics, Business and Information Technology, 2020, 453–458.
Gibrillia, A., & Sudirgo, T. (2023). Pengaruh Profitabilitas, Leverage, Dan Firm Size Terhadap Tax Avoidance. Jurnal Paradigma Akuntansi, 5(4). https://doi.org/https://doi.org/10.24912/jpa.v5i4.26662
Jessica, C., Goh, T. S., & Elidawati, E. (2022). Analysis of Banking Efficiency Using the Dea (Data Envelopment Analysis) Method At Mestika Bank Which Is Listed on the Indonesia Stock Exchange. Simak, 20(02), 243–255. https://doi.org/10.35129/simak.v20i02.364
Karlinah, Lady, Tallane, Y. Y., & Putri, V. R. (2024). Hubungan Capital Intensity Ratio, Firm Size, Digital Transformation terhadap Tax Avoidance dengan CSR sebagai Moderasi. Owner: Riset Dan Jurnal Akuntansi, 8(4), 4490–4506. https://doi.org/https://doi.org/10.33395/owner.v8i4.2481
Laksono, A. T., & Handayani, E. (2024). The Impact of Financial Distress, Women on Boards and Profitability on Corporate Tax Avoidance. East Asian Journal of Multidisciplinary Research, 3(3), 999–1018. https://doi.org/https://doi.org/10.55927/eajmr.v3i3.7665
Luspratama, R., Edward, Y. R., & Rahmi, N. U. (2023). Profitability Moderates the Effect of Firm Size, Leverage, and Liquidity on Financial Distress. Oblik i Finansi, 3(3(101)), 53–64. https://doi.org/10.33146/2307-9878-2023-3(101)-53-64
Masdupi, E., Tasman, A., & Davista, A. (2018). The Influence of Liquidity, Leverage and Profitability on Financial Distress of Listed Manufacturing Companies in Indonesia. 57(Piceeba), 223–228. https://doi.org/10.2991/piceeba-18.2018.51
Maulani, D. S., & Hidayat, R. A. (2024). Profitability and leverage on tax avoidance with company size as moderation in IDX manufacturing companies. Social Sciences Insights Journal, 2(3). https://doi.org/https://doi.org/10.5281/zenodo.14438572
Neilan Azmiawan, M. P., & Srimindarti, C. (2024). The Influence of Audit Tenure, Audit Rotation, and Company Size on Audit Quality in State-Owned Enterprises (Bumn) Listed on the Indonesian Stock Exchange for the 2020-2022. Journal of Economic, Business and Accounting, 7(3), 2478–2487.
Nigam, N., Mbarek, S., & Boughanmi, A. (2021). Impact of intellectual capital on the financing of startups with new business models. Journal of Knowledge Management, 25(1), 227–250. https://doi.org/10.1108/JKM-11-2019-0657
Ningrum, P. A. G. (2025). Family Ownership, Family Control, and The Level of Company Debt (Study on Family Business Listed on the Indonesia Stock Exchange). Jurnal Akuntansi, Ekonomi Dan Manajemen Bisnis , 5(2), 503–512.
Oktaria, M., Yanida, M., Alexandro, R., Tonich, T., & Putri, W. U. (2021). The Effect of Liquidity, Firm Size and Leverage on Financial Distress. Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021), 197(Teams), 484–489. https://doi.org/10.2991/aebmr.k.211124.068
Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95. https://doi.org/10.1177/0974686217701467
Permana, K. W. A. (2021). Analisis Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM) dan Gross Profit Margin untuk Mengukur Kinerja Keuangan pada PT Raje Baginda Jurai di Palembang. Jurnal Ekobis Kajian Ekonmi Dan Bisns, (Vol. 5 No. 1 (2021): Jurnal EKOBIS Kajian Ekonomi dan Bisnis Vol 5 No 1 (Desember 2021)), 1–76.
Purnamasari, M., & Yuniarwati. (2024). Pengaruh Profitabilitas, Leverage, Dan Ukuran Perusahaan Terhadap Penghindaran Pajak. Jurnal Multiparadigma Akuntansi, 6(1), 209–217.
Qolbi, F. A., Karisma, D. P., & Rosyadi, I. (2020). Macro Variable Effect Analysis and Non-Performing Financing (NPF) Against the Return on Asset (ROA) Islamic Banks In Indonesia Year 2008-2017. Journal of Islamic Economic Laws, 3(1), 32–47. https://doi.org/10.23917/jisel.v3i1.10170
Rahmawati, D., Badina, T., Rosiana, R., & Fatoni, A. (2022). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, Efisiensi Biaya, Umur Perusahaan dan Ukuran Dewan Pengawas Syariah Terhadap Islamic Social Reporting Pada Perbankan Syariah Di Indonesia Periode 2016-2020. Jurnal Rekognisi Ekonomi Islam, 1(1), 103–119.
Runis, A., Samsul Arifin, D., Masud, A., & Kalsum, U. (2021). The Influence of Liquidity, Leverage, Company Size and Profitability on Financial Distress. International Journal of Business and Social Science Research, 11–17. https://doi.org/10.47742/ijbssr.v2n6p2
Safitri, S. N., Mukharomah, W., Manajemen, P., Ekonomi, F., & Bisnis, D. (2023). Analisis Pengaruh Profitabilitas, Likuiditas, Risiko Kredit, Ukuran Bank, Dan Efisiensi Operasional Terhadap Rasio Kecukupan Modal Perbankan Umum Syariah Di Indonesia. Jurnal Bisnis Dan Manajemen, 3(4), 2477–1783.
Sambuaga, E. A., & Cuisan. (2024). The Impact of Financial Distress, The Covid-19 Pandemic, And Corporate Governance On Tax Avoidance: Evidence From Indonesia. International Journal of Auditing and Accounting Studies, 6(3), 385–400.
Saputri, N. A., & Santoso, P. R. (2023). Influence of Profitability, RETA, Liquidity, Leverage, Company Size, and Corporate Governance on Financial Distress. Research of Accounting and Governance, 1(1), 1–12. https://doi.org/10.58777/rag.v1i1.6
Sugiharto, Baretto, C. A., & Kurniawan, A. R. (2025). The Influence of Profitability, Executive Character, and Company Size on Tax Avoidance. AKRUAL: Jurnal Akuntansi, 12(1), 180–187. https://doi.org/https://doi.org/10.26740/jaj.v17n1.p180-187
Trisnawati, R., Mustikawati, S., & Sasongko, N. (2023). Enterprise Risk Management Disclosure and Ceo Characteristics: an Empirical Study of Go Public Companies in Indonesia. Business: Theory and Practice, 24(2), 379–391. https://doi.org/10.3846/btp.2023.18505
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Tri Bowo Cahyono, Imronudin, Muzakar Isa
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
