THE EFFECT OF RETURN ON ASSETS (ROA), LEVERAGE AND SIZE OF COMPANY IN MANUFACTURINGTAX AVOIDANCE LISTED IN BEI YEAR 2010-2013

Abstract

This study aimed to examine the effect of return on assets leverage and size of the company againts tax avoidance. Independent variables used in this study was measured by return on assets (ROA), leverage measured by debt to equity ratio and firm size measured by total assets log. While the dependent variable in this study was measured using the tax avoidance effective cash tax rate (CETR_it). The population in this study are manufacturing companies listed in indonesia stock exchange (BEI) from 2010-2013. This study using purposive sampling method and using a multiple linear reggresion test. The number of samples in this study was selected 59 manufacturing company in a single year, with observation for four years, the total sample used in this study amounted to 236 companies. The results showed that the return on assets (ROA) effect on tax avoidance, the leverage effect on tax avoidance, while the size of the company does not effect the tax avoidance.

Keywords : Tax Avoidance, Return On Assets, Leverage, Firm Size