The Effect of Firm Size, ROA and Executive Character on Tax Avoidance

摘要

Tax avoidance is a practice that impedes state revenues because the country's biggest income comes from taxes. This study aims to examine firm size, Return on asset (ROA) and executive character towards tax avoidance. The object of research was taken from the data of manufacturing companies in the Indonesia Stock Exchange in 2010-2017. The test results showed that firm size had no effect on tax avoidance, while ROA and executive character had a significant negative effect on tax avoidance. These results provide an understanding that the greater the value of ROA and the more executives dare to take risks; the level of tax avoidance by the company will increase. This study has limitations in terms of the number and measurement of variable data, so that the next researcher adds variables that are thought to influence tax avoidance such as political connections, fixed asset intensity and inventory intensity. In addition, adding the amount of data in the form of quarterly financial statements to find out more detailed company characteristics.