The Influence of Investment Decisions and Corporate Financial Performance on Tax Avoidance: A Cross-country Study

Salsabila Salsabila; Yossi Diantimala

doi:10.24815/jdab.v10i1.30221

The Influence of Investment Decisions and Corporate Financial Performance on Tax Avoidance: A Cross-country Study

Salsabila Salsabila, Yossi Diantimala

Abstract

This study investigates the influence of investment decisions and corporate financial performance on tax avoidance. We employed mining companies listed on the Asia Pacific Stock Exchanges from 2017 to 2021. The purposive sampling technique was applied to select 40 out of 97 top Australian, Indian, and Indonesian mining companies (200 firm-year observations). To test the hypotheses, the data was then analyzed comparatively using multiple linear regression analysis. The results show that investment decisions and corporate financial performance simultaneously affect tax avoidance. Partially, investment decisions has a significantly positive effect on tax avoidance, and corporate financial performance also has a significantly positive effect on tax avoidance. The results suggest that investment decisions and firm performance motivate managers to tax avoidance.

Keywords

Financial performance; investment decisions; mining companies; tax avoidance

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DOI: https://doi.org/10.24815/jdab.v10i1.30221

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Accounting Department collaborated with IAI KAPd (Institute of Indonesia Chartered Accountant)
Faculty of Business and Economics
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
ISSN: 2355-9462, E-ISSN: 2528-1143

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