Analysis of Determinants Affecting the Effective Tax Rate (ETR)

Table 4.1. 6 Multiple Linear Regression Analysis

Source: Processed Data, 2023

Based on the table above, the following equation can be arranged:

ETR = -1,025 – 0,092 INVEN + 0,045 SIZE + 0,101 SG – 0,004 LIKU – 0,049 SOLVA + ε

Based on the multiple linear regression equation, it can be interpreted as follows:

The constant value in the equation is -1,025 indicating that if the independent variable is equal to 0 or constant, then there is a decrease in the ETR of 1,025.

The regression coefficient of the INVEN variable in this equation is -0,092 indicating that for every 1% increase in inventory intensity, it will result in a decrease in ETR of 0,092.

The regression coefficient of the SIZE variable in this equation is 0,045 indicating that every 1% increase in firm size will result in an increase in ETR of 0,045.

The regression coefficient of the SG variable in this equation is 0,101 indicating that for every 1% increase in sales growth, it will result in an increase in ETR of 0,101.

The LIKU variable regression coefficient in this equation is -0,004 indicating that for every 1% increase in liquidity, it will result in a decrease in ETR of 0,004.

The regression coefficient of the SOLVA variable in this equation is -0,049 indicating that for every 1% increase in sales solvency, it will result in a decrease in ETR of 0,049.

Analysis of Determinants Affecting the Effective Tax Rate (ETR)

Based on the table above, the Adjusted R Square value is 0,072 or 7.2%. This means that the variable inventory intensity, firm size, sales growth, liquidity and solvency contributed to the ETR of 7.2% while the remaining 92.8% was influenced by other factors or those not examined.

4.1.8 Simultaneous Significance Test (F-Test)

Based on the table above, it shows that the significance value is 0.023 which means less than 0.05 so it can be concluded that all independent variables simultaneously influence ETR.

Based on the table above it can be explained as follows:

It is known that the INVEN variable has a significance value of 0.867 greater than 0.05 so it can be concluded that inventory intensity has no significant effect on ETR.

It is known that the SIZE variable has a significance value of 0.010 which is less than 0.05 so it can be concluded that firm size has a significant effect on ETR.

It is known that the SG variable has a significance value of 0.037 which is less than 0.05 so it can be concluded that sales growth has a significant effect on ETR.

It is known that the LIKU variable has a significance value of 0.876 greater than 0.05 so it can be concluded that liquidity has no significant effect on ETR.

It is known that the SOLVA variable has a significance value of 0.707 greater than 0.05 so it can be concluded that solvency has no significant effect on ETR.