Effect of Financial Performance Ratio and Good Corporate Governance on Tax Avoidance with Fiscal Loss Compensation as Moderating Variable (Manufacturing Companies Listed on Indonesia Stock Exchange Period 2017-2021)

Abstract

Financial performance ratios such as profitability, leverage, and company size alongside good corporate governance organs, like the audit committee and board of commissioners, are the key factors under scrutiny in this tax avoidance investigation. Taking place over a four-year period, we examined manufacturing companies within Indonesia, listed on the BEI from 2017 to 2021. Purposive sampling was employed to select 40 companies out of the 84 listed on the BEI. Ultimately, our research was based on 200 sets of data fulfilling established criteria. Using the Eviews 12 program, panel data regression analysis was employed to conduct hypothesis testing in this study. The findings reveal that tax avoidance is influenced by profitability, whereas tax avoidance is unaffected by company size, leverage, fiscal loss compensation, board of commissioners, and audit committee.