THE EFFECT OF THIN CAPITALIZATION ON TAX AVOIDANCEWITH FIRM SIZE AS A MODERATION VARIABLE

Abstract

This research aims to determine the effect of Firm Size in moderating the relationship between Thin Capitalization and Tax Avoidance. This research was conducted on Mining Companies Listed on the Indonesia Stock Exchange (BEI) for the 2018-2022 period. The method used in this research is an explanatory method with a quantitative approach using secondary data in the form of financial reports and annual reports of Mining Companies Listed on the Indonesia Stock Exchange (BEI) for the 2018-2022 period. The population used in this research was 74 Mining Companies Listed on the Indonesia Stock Exchange (BEI) for the 2018-2022 period. The sample in this research was selected using a purposive sampling method, so that 135 samples were obtained from 27 companies over 5 years. Data analysis in this study used simple linear regression analysis methods and moderate regression with statistical program tools, namely Eviews 13 For Windows. The research results obtained are that Thin Capitalization has a significant effect on Tax Avoidance in Mining Companies Listed on the BEI in 2018-2022 and Firm Size has a significant effect on the moderating relationship between Thin Capitalization and Tax Avoidance in Mining Companies Listed on the BEI in 2018-2022.