The Effects of Financial Distress, Capital Intensity, and Audit Quality on Tax Avoidance

ABSTRACT : This study aims to examine the effect of financial distress, capital intensity, and audit quality on tax avoidance, which is proxied by using the cash-effective tax rate (CETR). The population in this study was 47 mining companies listed on the Indonesia Stock Exchange in 2015-2019. The samples used in the study were 8 companies, with 40 observation periods. The data analysis technique used is multiple linear regression. The results show financial distress had a negative effect on tax avoidance, the higher the financial distress experienced by the company, the lower the tendency to do tax avoidance; capital intensity has no effect on tax avoidance; and audit quality has no effect on tax avoidance.
Keywords: Financial Distress, Capital Intensity, Audit Quality, Tax Avoidance