Effect of Liquidity and Profitability on Tax Avoidance in Registered Food and Beverage Companies in Indonesia Stock Exchange 2016-2020

Yolanda Agustina Ananta

Abstract


This study aims to see and analyze the effects of liquidity and profitability on tax avoidance listed on the Indonesia Stock Exchange. Liquidity in this study is measured using the Current Ratio (CR), profitability is measured using the Return On Assets (ROA), and tax avoidance is measured using the Cash Effective Tax Rate (CETR). The population in this study are food and beverage companies listed on the Indonesia Stock Exchange, totaling 11 companies over a 5-year period from 2016-2020, which were selected using a purposive sampling technique. This research approach uses associative research, which aims to determine the relationship between two or more variables, and the data used is in the form of numbers. Data collection techniques in this study using analytical techniques used are multiple linear regression analysis, hypothesis testing, and coefficient of determination with the help of IBM SPSS version 26 software. The results of this study indicate that two variables, namely liquidity and profitability, have no effect on tax avoidance in food companies and beverages listed on the Indonesia Stock Exchange.


Keywords


Liquidity, Profitability, Tax Avoidance

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.497

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