THE EFFECT OF LEVERAGE, FIRM SIZE, AND PROFITABILITY ON TAX AVOIDANCE IN IDX-LISTED COMPANIES WITH INSTITUTIONAL
DOI:
10.5281/zenodo.22783766Published:
2026-09-16Downloads
Abstract
This study aims to examine the effect of leverage, company size, and profitability on tax avoidance and examine the role of institutional ownership as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2022–2024 period. Tax avoidance is proxied using the Effective Tax Rate (ETR), which is the ratio of income tax expense to profit before tax. ETR is inversely proportional to tax avoidance, so a lower ETR indicates a higher level of tax avoidanc , while a higher ETR indicates a lower level of tax avoidance. This study uses a quantitative approach with an explanatory research method. The sample was determined through purposive sampling and resulted in 92 companies with a total of 276 firm-year observations. Hypothesis testing was carried out using multiple linear regression with a Moderated Regression Analysis (MRA) approach through the formation of interaction variables DAR×INST, SIZE×INST, and ROA×INST. The results showed that leverage (DAR) had no significant effect on tax avoidance. Firm size (SIZE) and profitability (ROA) significantly influence ETR with negative coefficients, indicating that increasing firm size and profitability tend to decrease ETR and, since ETR is inversely proportional to tax avoidance, indicate an increase in tax avoidance. Furthermore, institutional ownership does not moderate the effect of leverage on tax avoidance, but is shown to moderate the effect of firm size and profitability on tax avoidance. The positive interaction coefficient indicates that institutional ownership weakens the tendency of larger and more profitable firms to decrease ETR. This finding supports the agency theory perspective that institutional ownership acts as a monitoring mechanism that can suppress opportunistic behavior of management regarding tax strategies.
Keywords:
Tax Avoidance Leverage Company Size Profitability Institutional Ownership.References
Aini, H., & Kartika, A. (2022). Pengaruh profitabilitas, leverage, komisaris independen, ukuran perusahaan dan capital intensity terhadap penghindaran pajak. KOMPAK: Jurnal Ilmiah Komputerisasi Akuntansi, 15(1), 61–73. https://doi.org/10.51903/kompak.v15i1.604
Alkausar, B., Lasmana, M. S., & Soemarsono, P. N. (2020). Tax aggressiveness: A meta analysis in agency theory perspective. TIJAB (The International Journal of Applied Business), 4(1), 52–62
Anggraeni, L., & Yanto, H. (2023). The effect of profitability, firm size, and CSR on tax avoidance in manufacturing companies listed on IDX. Diponegoro Journal of Accounting, 12(2), 115–130.
Atthaila, T. Z., Naskhi, R. A. S., & Putro, G. M. H. (2025). Pengaruh profitabilitas, ukuran perusahaan, leverage, dan likuiditas terhadap penghindaran pajak pada perusahaan sub sektor oil, gas & coal yang terdaftar di BEI tahun 2021–2023. JAKUMA: Jurnal Akuntansi dan Manajemen Keuangan, 6(1), 105–124.
Badan Pusat Statistik. (2025). Pertumbuhan ekonomi Indonesia triwulan IV-2024 [Berita Resmi Statistik]. Badan Pusat Statistik.
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning.
Chen, S., Chen, X., Cheng, Q., & Shevlin, T. (2010). Are family firms more tax aggressive than non-family firms? Journal of Financial Economics, 95(1), 41–61.
Citra, A. F., & Hidayat, I. (2021). Pengaruh Profitabilitas, Leverage, dan Ukuran Perusahaan terhadap Penghindaran Pajak. Jurnal Riset Akuntansi dan Keuangan, 9(3), 499-510.
Darma, S. S., & Putri, K. R. (2023). Pengaruh Leverage, Kepemilikan Institusional, dan Ukuran Perusahaan terhadap Tax Avoidance pada Perusahaan Manufaktur. Jurnal Ilmiah Mahasiswa Akuntansi, 11(2), 145–158.
Desai, M. A., & Dharmapala, D. (2009). Corporate tax avoidance and firm value. The Review of Economics and Statistics, 91(3), 537–546.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2008). Long-run corporate tax avoidance. The Accounting Review, 83(1), 61–82. https://doi.org/10.2308/accr.2008.83.1.61
Frank, M. M., Lynch, L. J., & Rego, S. O. (2009). Tax reporting aggressiveness and its relation to aggressive financial reporting. The Accounting Review, 84(2), 467–496. https://doi.org/10.2308/accr.2009.84.2.467
Ghasani, N. A., Nurdiono, N., Agustina, Y., & Indra, A. Z. (2021). Pengaruh transfer pricing, leverage dan profitabilitas terhadap tax avoidance. Jurnal Akuntansi dan Keuangan (JAK), 26(1), 68–79.
Gintha Rahmadani, E., Kusbandiyah, A., Mudjiyanti, R., & Pramurindra, R. (2024). Pengaruh firm size, ROA, thin capitalization terhadap penghindaran pajak dengan kepemilikan institusional sebagai variabel moderasi. Journal of Accounting and Finance Management, 5(3), 438–455.
Gumelar, A., Susanto, H., & Sukayat, H. (2024). Effect Of Profitability, Leverage, Firm Size On Tax Avoidance: Case study on Banking Companies Listed on the IDX 2023 Period.
Hanafi, U., & Harto, P. (2014). Analisis pengaruh kompensasi eksekutif, kepemilikan saham eksekutif dan preferensi risiko eksekutif terhadap penghindaran pajak perusahaan. Diponegoro Journal of Accounting, 3(2), 1162–1172.
Hanifah, F. N., & Aresteria, M. (2025). Pengaruh leverage, profitabilitas dan good corporate governance terhadap tax avoidance: Studi empiris pada perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia. El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam, 6(5), 2227–2241.
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2–3), 127–178. https://doi.org/10.1016/j.jacceco.2010.09.002
Hendayana, Y., Ramdhany, M. A., Pranowo, A. S., Rachmat, R. A. H., & Herdiana, E. (2024). Exploring impact of profitability, leverage and capital intensity on avoidance of tax, moderated by size of firm in LQ45 companies. Cogent Business & Management, 11(1), 2371062.
Hermawan, H., & Nurbaiti, A. (2023). Peran Moderasi Kepemilikan Institusional pada Pengaruh Profitabilitas, Likuiditas, dan Leverage terhadap Penghindaran Pajak. Jurnal Akuntansi dan Auditing Indonesia, 27(2), 134–149.
Hidayat, A., & Rizky, R. (2022). Firm size, capital intensity, and tax avoidance: Evidence from Indonesian manufacturing firms. Jurnal Akuntansi dan Keuangan Indonesia, 19(1), 45–61.
Jao, R., Oktaviani, R. M., & Wijaya, H. (2024). Kepemilikan Institusional sebagai Pemoderasi Pengaruh Profitabilitas, Leverage, dan Ukuran Perusahaan terhadap Penghindaran Pajak. Jurnal Multiparadigma Akuntansi, 6(1), 209–217.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kementerian Keuangan Republik Indonesia. (2024). APBN KiTa: Kinerja dan fakta, edisi Desember 2024. Kementerian Keuangan Republik Indonesia.
Kementerian Keuangan Republik Indonesia. (2025). Pendapatan negara tahun 2024 tumbuh positif [Siaran pers konferensi pers APBN KiTa, 6 Januari 2025]. Kementerian Keuangan Republik Indonesia.
Khan, M., Srinivasan, S., & Tan, L. (2017). Institutional ownership and corporate tax avoidance: New evidence. The Accounting Review, 92(2), 101–122.
Kusnadi, D. & Prasetyo, A. (2023). Leverage, Institutional Ownership, and Tax Avoidance in Indonesian Manufacturing Firms. Journal of Accounting and Finance.
Laurentya, V., & Ngadiman. (2025). Pengaruh Leverage, Profitabilitas dan Likuiditas terhadap Tax Avoidance.
Lestari, N., & Tjaraka, H. (2023). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, dan Intensitas Modal terhadap Penghindaran Pajak. Jurnal Ilmu dan Riset Akuntansi (JIRA), 12(2).
Mayndarto, E. C. (2022). Pengaruh profitabilitas dan ukuran perusahaan terhadap penghindaran pajak pada perusahaan manufaktur sub sektor otomotif yang terdaftar di Bursa Efek Indonesia. Owner: Riset dan Jurnal Akuntansi, 6(1), 426–442.
Megawati, F. T., Umdiana, N., & Nailufaroh, L. (2021). Faktor-faktor struktur modal menurut trade off theory. Jurnal Akuntansi dan Keuangan (JAK), 26(1), 55–67.
Minnick, K., & Noga, T. (2010). Do corporate governance characteristics influence tax management? Journal of Corporate Finance, 16(5), 703–718. https://doi.org/10.1016/j.jcorpfin.2010.08.005.
Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433–443.
Niswah, L., & Nilam, A. (2024). Tax avoidance: An agency theory perspective. International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC), 2(4), 1242–1258.
Novitasari, A., & Cahyonowati, N. (2020). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, dan Intensitas Modal terhadap Penghindaran Pajak.
Nurjanah, A., & Cahyonowati, N. (2023). The effect of firm size, leverage, and ESG disclosure on tax avoidance. Diponegoro Journal of Accounting, 12(3), 201–216.
Pohan, C. A. (2013). Manajemen Perpajakan: Strategi Perencanaan Pajak dan Bisnis (Edisi revisi). Gramedia Pustaka Utama.
Prasetya, G., & Muid, D. (2022). Pengaruh profitabilitas dan leverage terhadap tax avoidance. Diponegoro Journal of Accounting, 11(1), 1–6.
Pratama, A. (2022). Analisis Faktor-faktor yang Mempengaruhi Penghindaran Pajak pada Perusahaan di Indonesia. Jurnal Akuntansi dan Keuangan Indonesia, 19(1), 44–65.
Puspitasari, E., & Purnamawati, I. G. A. (2024). Adaptasi Strategi Pajak Perusahaan Manufaktur Pasca Implementasi UU Harmonisasi Peraturan Perpajakan. Jurnal Akuntansi Multiparadigma, 15(1), 112–129.
Putra, R. & Nugroho, W. (2022). Firm Size, Institutional Ownership, and Tax Avoidance: Evidence from Indonesia. Jurnal Akuntansi Multiparadigma.
Quthbi, Z. H., & Renfiana, L. (2023). Tax avoidance dan faktor yang mempengaruhinya pada perusahaan yang terdaftar di Jakarta Islamic Index. Adzkiya: Jurnal Hukum dan Ekonomi Syariah, 11(2), 43–53.
Rahmawati, S. & Lestari, F. (2022). The Role of Institutional Ownership in Moderating the Effect of Leverage on Tax Avoidance. Journal of Economics and Business.
Risdawati, D., & Mulyani, D. (2021). Faktor yang Mempengaruhi Tax Avoidance dengan Ukuran Perusahaan sebagai Variabel Moderating.
Saputra, B. D. E., Wijayanti, A., & Astungkara, A. (2022). Pengaruh profitabilitas, ukuran perusahaan, dan leverage terhadap tax avoidance. AKUNTABEL: Jurnal Akuntansi dan Keuangan, 19(1), 68–74.
Sugiyono. (2023). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (Edisi ke-2, Cetakan ke-5). Alfabeta.
Sulistiana, I., Febriana, F., & Wibowo, C. A. (2025). The influence of sales and leverage on tax avoidance: Evidence from Indonesian public companies. International Journal of Applied Finance and Business Studies, 13(2), 287–294.
Widodo, W., & Puspitasari, A. (2022). Profitability, firm size, and tax avoidance: Evidence from Indonesian manufacturing firms. Jurnal Akuntansi dan Keuangan Indonesia, 19(2), 133–150.
Widyasmoro, R., Laksito, H., & Fuad, F. (2025). Efektivitas Kepemilikan Institusional dalam Memoderasi Praktik Penghindaran Pajak: Studi pada Industri Manufaktur. Simposium Nasional Akuntansi XXVIII.
Wulandari, R., & Santoso, A. (2024). The Role of Institutional Ownership as A Moderating Variable in Determining Disclosure of Tax Avoidance.
License
Copyright (c) 2026 Ika Pravita Wardani, Titik Mildawati
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
