No open-access location is known for this record yet.
No open-access location is known for this record yet.
The objective of this study is to collect tangible evidence that illustrates the influence of key financial indicators like return on assets and leverage on tax avoidance while also evaluating the role of financial distress as a moderating variable. It examines the performance of consumer companies, both cyclical and non-cyclical, that are registered on the Indonesia Stock Exchange (IDX) during the timeframe from 2020 to 2022. This current study contributes to the literature through a focus on the less explored relationship between financial distress and tax avoidance, particularly in the consumer sector. The increased economic uncertainty caused by the pandemic has made performance measures even more relevant. Results provide practical implications for corporate executives wanting to optimize financial strategies for policymakers desiring to improve tax compliance. Given this, the focus on this sector, therefore, presents a fresh look into how financial health influences tax approaches, an aspect which has not been deeply analyzed in Indonesia. The research applied purposive sampling techniques and selected 62 companies that satisfied the study's requirements, generating 186 data points across three years. The analysis utilized Eviews 12.0 software to perform panel data regression analysis, complemented by a quantitative examination involving using panel data, chow, and Hausman tests simultaneously. The results suggest that aspects of financial performance, such as return on assets and leverage, have a favourable impact on tax avoidance, but the inclusion of financial distress as a moderating factor appears to weaken this association.
Loading…
Stored only when both papers are in the corpus — 10 citations exist upstream.
Papers that cite the same references — the relational fallback while embeddings are still backfilling.
Imported from OpenAlex (CC0) — nothing here is generated.