The Moderating Role of Capital Intensity on Factors Influencing Tax Aggressiveness: A Case Study of Food and Beverage Companies Listed on the Indonesia Stock Exchange

Abstract

Tax aggressiveness is an important issue to research because it relates to corporate taxation issues. Several factors, direct and indirect, with the moderating role of capital structure, are of interest to further research on their impact on tax aggressiveness. This study examines how profitability, liquidity, and capital intensity affect tax aggressiveness in food and beverage companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2023. It also explores the moderating role of capital structure on the relationship. Using a quantitative approach, this study analyzes secondary data from financial statements using multiple linear regression and moderation regression analysis. The results show that profitability and liquidity significantly affect tax aggressiveness, while capital intensity and structure do not. In addition, capital structure moderates the effect of profitability and liquidity on tax aggressiveness but does not affect the relationship between capital intensity and tax aggressiveness. This study contributes to understanding the dynamics of tax strategies in Indonesia's food and beverage sector. It is concluded that profitability and liquidity significantly impact tax avoidance, while capital structure strengthens the role of profitability and liquidity in tax avoidance.

Received: 27 September 2024 | Revised: 26 February 2025 | Accepted: 19 March 2025

Conflicts of Interest 

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

Data sharing is not applicable to this article as no new data were created or analyzed in this study.

Author Contribution Statement

Martinus Robert Hutauruk: Conceptualization, Methodology, Software, Formal analysis, Writing – original draft, Writing – review & editing, Visualization, Supervision. Firmansyah: Validation, Resources, Data curation, Writing – original draft, Project administration. Agus Riyanto: Investigation, Resources, Data curation, Project administration. Yessy Arisa: Investigation, Resources, Data curation, Writing – original draft.