Corporate tax avoidance strategy
Year: 2026
Type: article
Abstract: This research examines corporate tax behavior in the mining sector by investigating how profitability and thin capitalization influence tax avoidance, with capital intensity as a moderating variable. The study focuses on mining companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2025 period. By utilizing purposive sampling techniques, the necessary data was gathered from financial statements and annual reports. The final sample consisted of 31 companies, comprising 93 observations. To evaluate the connections between variables, panel data regression was conducted using EViews 13 through a Moderated Regression Analysis (MRA) method. The results demonstrate that while profitability has a significant positive impact on tax avoidance, thin capitalization conversely displays a significant negative impact. The interaction tests reveal that capital intensity does not significantly alter the association either between profitability and tax avoidance, or between thin capitalization and tax avoidance. According to these outcomes, increased profitability tends to elevate tax avoidance behaviors, while thin capitalization tends to reduce them. Furthermore, capital intensity has not been shown to significantly alter the relationships between these two variables and tax avoidance.
Source: Educoretax
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7225611489
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