The Moderating Role of Firm Size in the Relationship Between Tax Avoidance and Disclosure Practices

Abstract

This study aims to examine the influence of profitability,
inventory intensity, and thin capitalization on tax avoidance,
while also assessing the moderating role of company size in these
relationships. The research sample consists of 54 manufacturing
companies in the food and beverage sector listed on the Indonesia
Stock Exchange (IDX) between 2021 and 2023. Data analysis is
conducted using EViews 12 software, employing a quantitative
research methodology with a descriptive approach. The findings
indicate that profitability and inventory intensity have a
significant effect on tax avoidance, whereas thin capitalization
does not. Additionally, company size moderates the relationship
between profitability and tax avoidance, as well as between thin
capitalization and tax avoidance. However, company size does
not moderate the relationship between inventory intensity and
tax avoidance. These results provide valuable insights into the