The Effect of Profitability, Firm Size, and Leverage on Tax Management in LQ45 Companies

Angelica Prisca Halim; Margareta Febe

doi:10.55927/jambak.v4i2.295

Authors

Angelica Prisca Halim Universitas Bunda Mulia
Margareta Febe Universitas Bunda Mulia

DOI:

https://doi.org/10.55927/jambak.v4i2.295

Keywords:

Profitability, Size, Leverage, LQ45, Tax Management

Abstract

This study examines the effect of profitability, firm size, and leverage on tax management in LQ45 companies listed on the Indonesia Stock Exchange from 2021 to 2023. Using a quantitative method and multiple linear regression (SPSS 25) on 27 firms, the results show that profitability and firm size have a significant negative effect, while leverage is insignificant. Larger and more profitable firms tend to adopt more conservative tax strategies due to regulatory pressure and reputational concerns. Firm size is the most dominant factor. However, the results are limited by the use of end-of-year LQ45 data, a short observation period, and reliance on secondary data, which may restrict broader generalization and deeper behavioral insights.

References

Afifah, F., & Mhd, I. (2020). The effect of profitability, firm size, and leverage on tax avoidance. Jurnal Ilmiah Akuntansi dan Keuangan, 9(1), 34–45.

Amelia, F., Rahmawati, & Rahayu, S. (2020). The influence of profitability, firm size, and leverage on tax avoidance. Jurnal Akuntansi Multiparadigma, 11(2), 289–304.

Br. Gurusinga, M., Tambunan, F. M., & Andriani, S. (2024). Profitability, firm size, leverage, and tax management. Jurnal Ilmu dan Riset Akuntansi, 13(1), 1–12.

Charista, L., & Febrianti, I. S. (2023). The influence of company characteristics on tax avoidance. Jurnal Akuntansi dan Keuangan, 15(1), 25–34.

Devina, A. D., & Pradipta, A. (2021). Profitability, leverage, and firm size on tax avoidance. Jurnal Ekonomi dan Bisnis, 24(1), 15–25.

Donald, P., & Porajow, J. E. (2020). The effect of company characteristics on tax avoidance. Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 8(2), 305–316.

Felicia, V., Feliciana, S., & Veny, R. D. (2024). Financial fraud and state losses in Indonesian SOEs: Case study of PT Indofarma Tbk. Jurnal Ilmu dan Riset Akuntansi, 13(2), 101–110.

Hendrastuti, R., & Harahap, R. A. (2023). Agency theory and corporate governance mechanisms in tax management. Jurnal Ilmiah Manajemen dan Bisnis, 10(1), 40–50.

Kamarullah, M., & Tala, M. (2024). The effect of financial performance and corporate characteristics on tax avoidance. Jurnal Ilmu dan Riset Akuntansi, 13(2), 45–60.

Kantohe, F. S., Summual, J. A., & Umar, H. (2023). The influence of company size and profitability on tax avoidance. Jurnal Accountability, 12(1), 1–9.

Marcella, V. Y., & Selfiyan, R. (2023). The influence of profitability, leverage, and firm size on tax avoidance. Jurnal Akuntansi Bisnis, 17(2), 200–213.

Mardiasmo. (2018). Perpajakan (Revisi ed.). Yogyakarta: Andi.

Mulyana, A., Suryani, & Fahmi, I. (2024). The effect of financial performance on corporate tax behavior. Jurnal Ilmu Manajemen dan Bisnis, 9(1), 112–121.

OECD. (2022). Revenue statistics in Asia and the Pacific 2022: Indonesia tax ratio data. OECD Publishing. https://doi.org/10.1787/9789264567890-en.

Pohan, C. A. (2019). Manajemen perpajakan: Strategi perencanaan pajak dan bisnis. Jakarta: PT Gramedia Pustaka Utama.

Putri, D. F., Sujana, E., & Ariyanto, D. (2022). Firm size, leverage, and profitability on tax avoidance. Jurnal Ilmu dan Riset Akuntansi, 11(6), 1–15.

Rianto, H., & Nur Asyiyah, N. (2022). Leverage and tax planning in Indonesian companies. Jurnal Riset Akuntansi dan Keuangan, 10(1), 88–95.

Satria, A. P., & Nathan, R. A. (2023). The relationship between capital structure and tax avoidance. Jurnal Akuntansi Indonesia, 12(1), 33–44.

Sonbay, I. P. (2022). Agency theory and tax compliance behavior. Jurnal Akuntansi dan Keuangan Indonesia, 19(2), 97–108.

Suandy, E. (2011). Perencanaan pajak. Jakarta: Salemba Empat.

Trida, M. (2021). Profitability and tax management in listed companies. Jurnal Ilmu Ekonomi dan Bisnis Islam, 8(1), 21–30.

Veny, R. D., & Bernhard, B. T. (2024). Agency problems and tax avoidance: Evidence from Indonesian firms. Jurnal Akuntansi dan Auditing, 13(2), 100–110.

Wijaya, A. (2021). The impact of profitability on corporate tax behavior. Jurnal Ilmiah Akuntansi dan Keuangan, 9(2), 120–130.

Wijayanti, D., & Muid, A. (2020). The role of leverage in tax management: Evidence from manufacturing companies. Jurnal Akuntansi Multiparadigma, 11(1), 180–195.

Yaramah, A., & Andriyani, T. (2022). The effect of firm characteristics on tax avoidance. Jurnal Riset Akuntansi dan Keuangan, 10(3), 202–214.

Yoda, A. P. (2024). Econometric models and classical assumption testing in accounting research. Jurnal Penelitian Ekonomi dan Akuntansi, 12(1), 50–64.