THE EFFECT OF FINANCIAL DERIVATIVES, PROFITABILITY, FIRM SIZE, AND AUDIT QUALITY ON TAX AVOIDANCE

Abstract

This study aims to examine the effects of financial derivatives, profitability, firm size, and audit quality on tax avoidance, as measured by Cash Effective Tax Rate (CETR). The focus of this research lies on the mining sector, using an empirical approach. The population taken is mining companies listed on the Indonesia Stock Exchange during the 2019-2022 period. The required data comes from the financial statements and annual reports of these companies. The research sample was selected through purposive sampling technique, resulting in 30 companies as samples. The analysis method used is multiple linear regression with SPSS 25. The results showed that the use of financial derivatives had no significant effect on tax avoidance. Meanwhile, profitability, firm size, and audit quality have a significant effect on tax avoidance. These findings are expected to contribute to adding to the literature related to accounting and tax, especially regarding tax avoidance.