Profitability, Firm Size, Leverage, and Tax Avoidance in Indonesian Food and Beverage Companies

DOI

10.2991/978-94-6239-709-5_175How to use a DOI?

Keywords

Tax Avoidance; Profitability; Leverage; Company Size; Indonesia Stock Exchange; Food and Beverage Industry

Abstract

This study analyzes the influence of corporate characteristics on tax avoidance practices among food and beverage companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The research focuses on three main variables: profitability, firm size, and leverage. The analysis reveals that profitability, measured by Return on Assets (ROA), does not have a significant impact on tax avoidance, a significance level of 0.085. Similarly, firm size is not found to significantly affect tax avoidance, a significance level of 0.130. In contrast, leverage, measured by the Debt to Equity Ratio (DER), shows a positive and significant relationship with tax avoidance, a significance level of 0.018. These findings suggest that companies with higher leverage are more likely to engage in tax avoidance strategies by utilizing interest expenses to reduce taxable income. Overall, the results highlight that tax avoidance is a multifaceted issue influenced by various factors, particularly financial strategies related to capital structure.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Hardiansyah Hardiansyah
AU  - Fauziah Umar
PY  - 2026
DA  - 2026/06/20
TI  - Profitability, Firm Size, Leverage, and Tax Avoidance in Indonesian Food and Beverage Companies
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 2509
EP  - 2518
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_175
DO  - 10.2991/978-94-6239-709-5_175
ID  - Hardiansyah2026
ER  -