Examining the Influence of Capital Intensity, Profitability, Leverage, and Firm Size on Corporate Tax Avoidance

This study aims to empirically examine the effects of capital intensity, profitability, leverage, and firm size on tax avoidance in food and beverage sub-sector companies listed on the Indonesia Stock Exchange during 2022–2025. Capital intensity is measured by the fixed assets-to-total assets ratio, profitability by Net Profit Margin (NPM), leverage by Debt to Equity Ratio (DER), firm size by Ln assets, and tax avoidance by Cash Effective Tax Rate (CETR). Using purposive sampling, 29 companies were selected based on predetermined criteria. Data were analyzed using panel data regression, including model selection, classical assumption tests, hypothesis testing, and the coefficient of determination. The results show that capital intensity and firm size have no significant effect on tax avoidance, while profitability and leverage have positive and significant effects. These findings highlight the importance of profitability and leverage in understanding tax avoidance practices.