THE EFFECT OF PROFITABILITY AND LEVERAGE ON TAX AVOIDANCE WITH FIRM SIZE AS A MODERATING VARIABLE

Abstract

This study was conducted to examine the effects of profitability and leverage on tax avoidance with firm size as moderating variable. The object of this study is the financial statements of energy sector companies listed on the Indonesia Stock Exchange (IDX) where the data collection method uses the purposive sampling method, where the number of samples obtained is 280 samples from 56 energy sector companies consistently listed on the Indonesia Stock Exchange (IDX) during 2021-2025 period. This study uses EViews Statistic Software version 14 SV to conduct several tests. The results of this study indicate that profitability has a positive and significant effect on tax avoidance and leverage does not have a significant effect on tax avoidance. Firm size moderates by weakening the effect of profitability on tax avoidance, but firm size does not moderate the effect of leverage on tax avoidance.