The Effect of Financial Distress and Capital Intensity on Tax Avoidance
Abstract
This study aims to examine the effect of financial distress and capital intensity on tax avoidance in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. Tax avoidance is an important concern because although legal, this practice can reduce potential state revenue, especially in a situation of economic recovery after the COVID-19 pandemic. This research is motivated by the inconsistency of previous research results regarding the relationship between financial distress and capital intensity variables with tax avoidance. The method used is a quantitative approach with descriptive research type. Data were obtained through purposive sampling technique from 32 companies, and analyzed using multiple linear regression. The results showed that financial distress has a significant negative effect on tax avoidance, while capital intensity has no significant effect. These findings indicate that companies in financial distress tend to avoid additional risk through tax avoidance. This study contributes to the understanding of corporate behavior in tax management and the importance of financial stability in fiscal compliance.
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PENGARUH FINANCIAL DISTRESS DAN CAPITAL INTENSITY TERHADAP TAX AVOIDANCE DENGAN UKURAN PERUSAHAAN SEBAGAI PEMODERASI (Nasution et al., 2023)
PENGARUH CAPITAL INTENSITY , PROFITABILITAS , DAN FINANCIAL DISTRESS TERHADAP TAX AVOIDANCE(Lukito & Sandra, 2021)
Pengaruh CEO Tenure , Capital Intensity , Thin Capitalization , Sales Growth dan Financial Distress Terhadap Tax Avoidance(Anggraini & Trisnawati, 2025)
TRANSFER PRICING , THIN CAPITALIZATION , FINANCIAL DISTRESS , EARNING MANAGEMENT , DAN CAPITAL INTENSITY TERHADAP TAX AVOIDANCE DIMODERASI OLEH S ALES(Magister et al., 2020)
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Pengaruh financial distress, leverage dan capital insenty terhadap tax avoidance(Santo & Nastiti, 2023)
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The Effect of Tax Planning and Current Tax Expense on Earnings Management Before and After Income Tax Rate Changes(Rengganis & Soetardjo, 2023)
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