FIRM SIZE AND DEBT AS DETERMINANTS OF TAX AGGRESSIVENESS: THE MODERATING EFFECT OF DIVIDEND POLICY

This study aimed to analyze the effect of firm size and leverage on tax aggressiveness, with dividend policy as a moderating variable, in consumer non-cyclical sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. The study employed a quantitative approach with an associative-causal design. The population consisted of 128 consumer non-cyclical companies, and a sample of 23 companies was selected through purposive sampling after outlier treatment, resulting in 115 observations over five years. Secondary data were collected from annual financial statements. The data were analyzed using panel data regression and Moderated Regression Analysis with the assistance of Microsoft Excel and EViews version 12. The results showed that firm size had no significant effect on tax aggressiveness, with a probability value of 0.170. Leverage had a significant negative effect on tax aggressiveness, with a regression coefficient of −0.120 and a significance value of 0.034. Dividend policy did not moderate the effect of firm size on tax aggressiveness, with a significance value of 0.740, but significantly moderated the effect of leverage on tax aggressiveness, with a regression coefficient of 0.570 and a significance value of 0.000. The F-test confirmed that firm size and leverage simultaneously affected tax aggressiveness with a significance value of 0.001. These findings implied that leverage served as a key determinant of tax aggressiveness, and that dividend policy strengthened the relationship between leverage and tax aggressiveness by encouraging companies to manage tax expenses more strategically.