The Effect of Financially Expert CEO, Profitability, and Company Size on Tax Avoidance

Abstract

This research aims to analyze the impact of CEOs who are experts in finance, profitability and company size on tax avoidance in manufacturing companies, especially in the food and beverage subsector listed on the Indonesia Stock Exchange (BEI) during the 2020-2023 period. This research used a purposive sampling method with selection criteria of 46 companies, resulting in a total of 184 samples that had complete financial reports and used the Rupiah currency. A quantitative approach is used with multiple linear regression analysis and classical assumption tests such as normality, autocorrelation, heteroscedasticity and multicollinearity tests. The research results show that the variables CEO Financial Expert, Profitability, and Company Size have a significant positive influence on Tax Avoidance. However, the low coefficient of determination (R²), namely 9.2%, indicates that these variables only explain a small part of tax avoidance. This research is expected to provide insight for investors and stakeholders regarding the factors that influence tax avoidance practices and contribute to the development of agency theory which outlines conflicts of interest between managers and company owners. In addition, this research is expected to provide recommendations for companies to manage taxes more effectively and ethically in the food and beverage industry.