International Journal of Social Science & Economic Research
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Title:
THE ROLE OF THIN CAPITALIZATION AND FISCAL LOSS COMPENSATION ON TAX AVOIDANCE : CASE EVIDENCE IN INDONESIA MANUFACTURING COMPANIES

Authors:
Oktariana Galih Pratiwi and Dr. Fatchan Achyani

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Oktariana Galih Pratiwi1 and Fatchan Achyani2
1. Accounting Student, Faculty of Economics and Business, Muhammadiyah University of Surakarta, Central Java, Indonesia
2. Lecturer in Accounting, Faculty of Economics and Business, Muhammadiyah University of Surakarta, Central Java, Indonesia

MLA 8
Pratiwi, Oktariana Galih, and Fatchan Achyani. "THE ROLE OF THIN CAPITALIZATION AND FISCAL LOSS COMPENSATION ON TAX AVOIDANCE : CASE EVIDENCE IN INDONESIA MANUFACTURING COMPANIES." Int. j. of Social Science and Economic Research, vol. 8, no. 5, May 2023, pp. 951-964, doi.org/10.46609/IJSSER.2023.v08i05.002. Accessed May 2023.
APA 6
Pratiwi, O., & Achyani, F. (2023, May). THE ROLE OF THIN CAPITALIZATION AND FISCAL LOSS COMPENSATION ON TAX AVOIDANCE : CASE EVIDENCE IN INDONESIA MANUFACTURING COMPANIES. Int. j. of Social Science and Economic Research, 8(5), 951-964. Retrieved from https://doi.org/10.46609/IJSSER.2023.v08i05.002
Chicago
Pratiwi, Oktariana Galih, and Fatchan Achyani. "THE ROLE OF THIN CAPITALIZATION AND FISCAL LOSS COMPENSATION ON TAX AVOIDANCE : CASE EVIDENCE IN INDONESIA MANUFACTURING COMPANIES." Int. j. of Social Science and Economic Research 8, no. 5 (May 2023), 951-964. Accessed May, 2023. https://doi.org/10.46609/IJSSER.2023.v08i05.002.

References

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ABSTRACT:
This study investigates the effect of thin capitalization, transfer pricing aggressiveness, political connections and fiscal loss compensation on tax avoidance. This study uses secondary data in the form of financial reports and annual reports of manufacturing companies listed on the Indonesia Stock Exchange for 2018-2021. The analysis was carried out on 30 companies selected by purpove sampling method in order to obtain 120 companies. The analysis uses SPSS 26 and removes 10 outlier data from observational data so that it passes the classical assumption test. Regression results show that thin capitalization and fiscal loss compensation have an effect on tax avoidance. Meanwhile, transfer pricing aggressiveness and political connections have no effect on tax avoidance.

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