FACTORS AFFECTING TRANSACTIONS OF PRIVILEGED RELATIONS, LIQUIDITY AND COMPANY SIZE ON TAX AGGRESSIVENESS

Abstract

This research is about the influence of Related Party Transaction, Liquidity and Company Size on tax aggressiveness. The dependent variable in this research is tax aggressiveness as measured by Effective Tax Rate. The independent variable in this research are related party transaction measured by receivable related party divided by asset , liquidity is measured by Current Ratio and company size is measured by the natural logarithm of the book value of the company’s total assets. This study uses quantitative research and has a sample of 29 manufacturing companies in the consumer goods industry sector with a total of 87 data published by the Indonesia Stock Exchange during 2017-2019 using the purposive sample method. The data used are obtained from financial reports and annual reports listed on the Indonesia Stock Exchange. Data analysis was carried out by classical assumption test and hypothesis testing by multiple regression method. The results of this study prove that Transactions with Related Party Transaction and Liquidity have no effect on Tax Aggressiveness, while Company Size has an effect on Tax Aggressiveness. The limitation of this research is that there are some financial reports and annual reports that cannot be accessed. Suggestions for future researchers are to use other measurements