THE IMPACT OF RELATED-PARTY TRANSACTIONS, FIRM SIZE, AND SALES GROWTH ON TAX AVOIDANCE

Abstract

This study examines the impact of related-party transactions, firm size, and sales growth on tax avoidance in food and beverage companies listed on the Indonesia Stock Exchange during the 2017–2024 period. This research employs a quantitative approach with a causal explanatory design and utilizes secondary data derived from annual financial statements. From a population of 43 companies, purposive sampling resulted in 10 firms, yielding 79 observations. Panel data regression analysis using a fixed effects model (FEM) was conducted with EViews 13. The results indicate that firm size has a positive and statistically significant effect, whereas related-party transactions and sales growth do not have a statistically significant effect on tax avoidance. Simultaneously, all independent variables significantly influence tax avoidance. These findings suggest that firm size is a key determinant of tax avoidance practices. This study contributes by providing sector-specific evidence from the Indonesian food and beverage industry, where empirical findings remain limited and inconsistent.