Tax Avoidance and Financial Factors: The Moderating Role of Firm Size on Financial Distress in Consumer Non-Cyclicals Firms Listed on IDX (2020–2024)

Luna Chantika Nawara; Elok Heniwati; Muhammad Fahmi; Syarif M. Helmi; Nina Febriana Dosinta

doi:10.59890/ijfbm.v3i5.89

Authors

Luna Chantika Nawara Tanjungpura University
Elok Heniwati Tanjungpura University
Muhammad Fahmi Tanjungpura University
Syarif M. Helmi Tanjungpura University
Nina Febriana Dosinta Tanjungpura University

DOI:

https://doi.org/10.59890/ijfbm.v3i5.89

Keywords:

Tax Avoidance, Financial Distress, Leverage, Inventory Intensity, Firm Size

Abstract

This research examines the effect of financial distress, leverage, and inventory intensity on tax avoidance, as well as the role of firm size as a moderator of financial distress on tax avoidance in companies within the Consumer Non-Cyclicals sector listed on the Indonesia Stock Exchange (BEI) during the period of 2020–2024. The methods used are multiple linear regression and moderated regression analysis (MRA). The results indicate that only financial distress has a significant negative effect on tax avoidance. Leverage and inventory intensity do not have a significant effect, and firm size does not moderate the relationship between financial distress and tax avoidance. These findings emphasize the importance of financial conditions in influencing corporate tax policies.

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