Economics and Business
ISSN 2775-9237 (Online)
Published: 23 December 2022
The Effect of Tax Planning and Profitability on Equity (Empirical Study in the Consumer Goods Industry in Indonesia)
Indi Santika Kumala Putri, Nur Sayidah, Aminullah Assagaf, Hadi Sugianto, Zainal Fatah
University of Dr. Soetomo Surabaya, Indonesia
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Keywords: Tax Planning, Profitability, Equity
This study aims to determine the effect of partial and simultaneous tax planning and profitability on equity. Tax planning and profitability are used as independent variables—Equity as a dependent variable. The population in this study is all companies in the consumer goods industry listed on the Indonesia Stock Exchange from 2018 to 2021. Sample number 28 consists of 7 companies multiplied by four years of research. A sampling method is purposive sampling. The analysis method used to test hypotheses uses multiple linear regression analysis. The multiple linear regression analysis tests performed on the F test on the third hypothesis obtained an F value of 27,441 and a significance of 0, which means that tax planning and profitability simultaneously affect equity. The result of testing for the first hypothesis showed a t-value of -2.327 and a significance level of 0.028. Based on this result, the conclusion is tax planning partially had a significant adverse effect on equity. The second hypothesis test indicates a t-value of 7.334 and a significance level of 0.00. We can explain that profitability had a significant positive impact on equity.
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