THE INFLUENCE OF THE PROPORTION OF INDEPENDENT COMMISSIONERS, LEVERAGE, AND COMPANY SIZE ON TAX AVOIDANCE: PROFITABILITY AS A MODERATING VARIABLE

Abstract

This study aims to examine the influence of the proportion of independent commissioners, leverage, and company size on tax avoidance, as well as the moderating role of profitability. The data used in this study are secondary data obtained from the annual financial reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2024. The population of this study consists of 284 companies. Using a purposive sampling technique, 103 companies were selected as the sample. The analytical methods employed Moderated Regression Analysis (MRA) with the assistance of SPSS version 25. The results indicate that, partially, leverage has a positive and significant effect on tax avoidance. In contrast, the proportion of independent commissioners and company size do not have a significant effect on tax avoidance. The Moderated Regression Analysis (MRA) results show that profitability significantly and negatively moderates the effect of Company Size on tax avoidance. However, profitability does not moderate the relationship between the proportion of independent commissioners and leverage on tax avoidance.