The Effect of Deferred Tax Expense on the Relationships Between Foreign Ownership, Capital Intensity, and Financial Distress with Tax Avoidance
Abstract
This research examines the effect of foreign ownership, capital intensity, and financial distress on tax avoidance, with deferred tax expense serving as a moderating variable. The sampling technique employed in this study utilizes the entire research population (census method), encompassing 844 non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2024. The results indicate that foreign ownership and capital intensity have negative impacts on tax avoidance. Meanwhile, Financial distress has a significant positive effect on tax avoidance. Deferred tax expense can moderate the relationship between capital intensity and tax avoidance. However, it cannot moderate the relationship between foreign ownership and Financial Distress with tax avoidance. This study highlights an important implication that the tax authorities need to increase their supervision of high-risk companies.
This research examines the effect of foreign ownership, capital intensity, and financial distress on tax avoidance, with deferred tax expense serving as a moderating variable. The sampling technique employed in this study utilizes the entire research population (census method), encompassing 844 non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2024. The results indicate that foreign ownership and capital intensity have negative impacts on tax avoidance. Meanwhile, Financial distress has a significant positive effect on tax avoidance. Deferred tax expense can moderate the relationship between capital intensity and tax avoidance. However, it cannot moderate the relationship between foreign ownership and Financial Distress with tax avoidance. This study highlights an important implication that the tax authorities need to increase their supervision of high-risk companies.
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DOI: https://doi.org/10.24167/jab.v23i2.14468
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