PENGARUH TAX AVOIDANCE RISK TERHADAP CASH HOLDING POLICY PERUSAHAAN DI INDONESIA

Abstract

This study aims to determine the effect of Tax Avoidance Risk to Cash Holding Company
Policy in Indonesia. Tax Avoidance Risk is measured by Cash Effective Tax Rate proxy and
Cash Holding Policy is measured by Cash Ratio proxy (cash and cash equivalent divided by
total asset or total sales). Based on regression with random effect model on 74 samples, we
found that Tax Avoidance Risk has no effect on Cash Holding Policy after controlled by
market to book ratio variable, firm size, leverage, capital expenditure, volatility ofcash flow,
dividend, research and development , Acquisitions, cash flow after tax, and industrial sector.
Keywords : Tax Avoidance, Cash Holding Policy, Tax Aggressiveness, Cash ETR