June 30, 2025

The Effect of Inventory Intensity, Sales Growth, and Financial Distress on Tax Aggressiveness

Key Points

Sales growth negatively affects tax aggressiveness, highlighting a critical risk factor for financial planning.
The panel data regression, specifically the Random Effect Model, was utilized to analyze data from 10 companies.
Inventory intensity and financial distress show no significant impact on tax aggressiveness within this context.
Results call for further understanding of factors influencing tax compliance among real estate sectors.

Abstract

This study aims to analyze the effect of inventory intensity, sales growth, and financial distress on tax aggressiveness. This research was conducted by analyzing the financial statements of companies in the properties & real estate sector listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The samples used in this study were 10 companies using purposive sampling technique. The data used in this study are secondary data in the form of financial reports from each company that has been sampled. The panel data regression method is used as a research methodology in this study. The results showed that the best model was the Random Effect Model (REM). The results in this study indicate that inventory intensity has no effect on tax aggressiveness, sales growth has a negative effect on tax aggressiveness, and financial distress has no effect on tax aggressiveness. Simultaneously inventory intensity, sales growth and financial distress affect tax aggressiveness.

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