Research Article
Tax Facility Moderates Effect of Inventory Intensity and Capital Intensity on Effective Tax Rate
@INPROCEEDINGS{10.4108/eai.3-8-2021.2315158, author={Sistya Rachmawati}, title={Tax Facility Moderates Effect of Inventory Intensity and Capital Intensity on Effective Tax Rate}, proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia}, publisher={EAI}, proceedings_a={LEPALISSHE}, year={2022}, month={1}, keywords={inventory intensity; capital intensity; taxation facility; effective tax rate}, doi={10.4108/eai.3-8-2021.2315158} }- Sistya Rachmawati
Year: 2022
Tax Facility Moderates Effect of Inventory Intensity and Capital Intensity on Effective Tax Rate
LEPALISSHE
EAI
DOI: 10.4108/eai.3-8-2021.2315158
Abstract
The purpose of this research is to analyze the effect of inventory intensity and capital intensity on effective tax rate, the moderating effect of taxation facility towards the effect of inventory intensity and capital intensity on effective tax rate. Unit analysis is manufacturing company with time horizon 5 years (2015-2019). Secondary data obtained from financial report and annual report of manufacturing company listed on Indonesia Stock Exchange‘s. Data analysis techniques is Multiple Regression Analysis. Results showed that inventory intensity and capital intensity negatively and significantly influence effective tax rate. Taxation facility is not able to moderate the effect of inventory intensity and capital intensity on effective tax rate. Control variables which are independent commissioner and managerial ownership has no effect on effective tax rate. While control variables which are institutional ownership and external auditor quality has significant effect on effective tax rate.