The Effect of Liquidity, Firm Size, Executive Characteristics, Leverage, and Sales Growth on Tax Avoidance

This research aims to investigate the influence of liquidity, firm size, executive characteristics, leverage, and sales growth on tax avoidance among companies in the industrial sector listed on the Indonesia Stock Exchange (IDX). The study utilized data from 2018 to 2020, comprising companies from the industrial sector listed on the IDX selected via purposive sampling. Out of 66 companies, 28 were included based on predefined criteria. Panel data regression analysis was employed to analyze the dataset. The findings indicate that Debt to Equity Ratio (DER) negatively affects tax avoidance, implying that an increase in DER by one percent leads to a decrease in tax avoidance. However, liquidity, firm size, executive characteristics, and sales growth were found to have no significant impact on tax avoidance. Therefore, it can be concluded that these variables do not exert the same level of influence as observed in previous studies.