THE EFFECT OF PROFITABILITY, CAPITAL INTENSITY, AND TAX GOVERNANCE DISCLOSURE ON TAX MANAGEMENT

Anton Arisma; Frisca

doi:10.30998/jabe.v12i1.3747

Authors

Anton Arisma Universitas Multi Data Palembang Author
Frisca Universitas Multi Data Palembang Author

DOI:

https://doi.org/10.30998/jabe.v12i1.3747

Keywords:

Capital Intensity, Profitability, Tax Governance Disclosure, Tax Managemen

Abstract

This study aims to analyze the effect of profitability, capital intensity, and tax governance disclosure on tax management in manufacturing companies listed on the Indonesia Stock Exchange in 2024. The main research question is whether these three variables have a partial or simultaneous effect on corporate tax management practices. The research employs a quantitative causal approach using secondary data obtained from annual and sustainability reports. A total of 34 manufacturing companies were selected using the purposive sampling method, and the data were analyzed using multiple linear regression with IBM SPSS Statistics software. The results indicate that profitability has a positive and significant effect on tax management, while capital intensity and tax governance disclosure show no significant influence. Simultaneously, the three independent variables significantly affect tax management with a significance value of 0.026 and a coefficient of determination (R²) of 0.263. This finding suggests that profitability is the dominant factor influencing tax management decisions. Theoretically, this research contributes to the literature on taxation by integrating financial performance factors and tax governance transparency. Practically, the results can serve as a reference for corporate management and policymakers in developing efficient and transparent tax management strategies.

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