This study aims to examine the relationship between tax avoidance and debt maturity with financial constraints as a mediation variable. The independent variable in this study is tax avoidance, measured by Cash Effective Tax Rate (CETR). The dependent variable in this study is debt maturity. Meanwhile, the mediating variable in this study is financial constraints that are measured by the KZ Index. The researcher uses a sample of 186 observations from 135 firms in the period 2016 to 2017 from non-financial firms listed on the Indonesia Stock Exchange (IDX). The results of this study indicate that there is a direct and indirect relationship between tax avoidance and debt maturity. This study also documented the full mediation effect of financial constraint on the relationship between tax avoidance and debt maturity.
|Number of pages||19|
|Journal||International Journal of Innovation, Creativity and Change|
|Publication status||Published - 2020|
- Debt maturity
- Financial constraints
- Tax avoidance