THE INFLUENCE OF PROFITABILITY AND LEVERAGE ON TAX AGGRESSIVENESS WITH COMPANY SIZE AS A MODERATION VARIABLE IN MANUFACTURING COMPANIES LISTED ON INDONESIA STOCK EXCHANGE (IDX) FOR THE PERIOD 2020-2021

Abstract

The purpose of this research is to examine the influence of profitability and leverage on tax aggressiveness with company size as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange (IDX). The research method used is a quantitative approach with secondary data obtained from financial reports on the Indonesia Stock Exchange website. The research sample consists of 82 manufacturing companies selected using purposive sampling technique. Data analysis techniques used include testing analysis prerequisites, descriptive statistical analysis, classical assumption tests, moderation regression analysis, and hypothese test. The research results show that, partially, profitability does not have a significant influence on tax aggressiveness, while leverage has a proven negative influence on tax aggressiveness, and company size has not been able to moderate the influence of profitability and leverage on tax aggressiveness. The coefficient of determination in this study has an adjusted R² value of 0.055, so it means that the contribution of profitability and leverage to tax aggressiveness is 5.5%. While the remaining 94.5% was influenced by other variables outside the study. Meanwhile, the value after the moderation variable increase by 2.1%, from 5.5% to 7.6%. It means that the contribution of the existence of company size variables as moderation variables can increase the contribution of profitability and leverage to tax aggressiveness.