The effect of business strategy and financial distress on tax avoidance in consumer non-cyclical companies

Abstract

This study was conducted to determine the effect between business strategy and financial distress on tax avoidance. This study uses consumer non-cyclicals sector companies as the population and uses quantitative methods with a sample of 66 observations consisting of 21 consumer non-cyclicals companies listed on the Indonesia Stock Exchange for the period 2018-2022. This study uses multiple linear regression data analysis techniques. The results of this study indicate that companies with financial distress conditions have a positive effect on tax avoidance. While companies with prospector and defender business strategies have no effect on tax avoidance. the results of this study indicate that the company's financial condition has more influence on corporate tax policy than business strategy.