Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)

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Determinants of Tax Avoidance through Profitability, Leverage, and Firm Size in Manufacturing Companies of the Food and Beverage Subsector

Authors
Michelle Tan1, Sofia Prima Dewi1, *
1Universitas Tarumanagara, Jakarta, Indonesia
*Corresponding author. Email: sofiad@fe.untar.ac.id
Corresponding Author
Sofia Prima Dewi
Available Online 13 May 2026.
DOI
10.2991/978-94-6239-670-8_14How to use a DOI?
Keywords
Tax Avoidance; Profitability; Leverage; Firm Size; Effective Tax Rate
Abstract

This study examines how profitability, leverage, and firm size shape tax avoidance in food and beverage manufacturing companies listed on the Indonesia Stock Exchange from 2021 to 2024. Using purposive sampling, 30 companies were selected, yielding 120 firm-year observations. Panel regression analysis was applied, with tax avoidance measured by the Effective Tax Rate (ETR). The results show that higher profitability and larger firm size are associated with lower tax avoidance, while higher leverage increases tax avoidance. These findings carry different implications: regulators should strengthen oversight, policymakers may adjust tax incentives to curb avoidance, and corporate practitioners are encouraged to implement governance-based tax strategies.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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Volume Title
Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
13 May 2026
ISBN
978-94-6239-670-8
ISSN
2352-5428
DOI
10.2991/978-94-6239-670-8_14How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

Cite this article

risenwbib
TY  - CONF
AU  - Michelle Tan
AU  - Sofia Prima Dewi
PY  - 2026
DA  - 2026/05/13
TI  - Determinants of Tax Avoidance through Profitability, Leverage, and Firm Size in Manufacturing Companies of the Food and Beverage Subsector
BT  - Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)
PB  - Atlantis Press
SP  - 170
EP  - 178
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-670-8_14
DO  - 10.2991/978-94-6239-670-8_14
ID  - Tan2026
ER  -