The Impact of Managerial Ability, Profitability, and Leverage on Corporate Tax Avoidance: Evidence from Non-Financial Public Companies Listed on the Indonesia Stock Exchange

This study examines the relationship between managerial ability, profitability, and leverage and their influence on tax avoidance practices among non-financial public companies listed on the Indonesia Stock Exchange. Employing a qualitative systematic literature review, the study adopts a systematic literature review of empirical and conceptual studies published in reputable national and international journals over the past decade. Data were analyzed using thematic content analysis to identify recurring patterns, theoretical perspectives, and the consistency of prior empirical findings regarding corporate tax behavior. The findings reveal three principal insights. First, managerial ability plays a significant role in shaping tax avoidance strategies, as highly competent managers possess the expertise to design effective and efficient tax planning mechanisms within regulatory boundaries. Second, profitability tends to exhibit a negative association with tax avoidance, suggesting that firms with higher earnings are generally more cautious in safeguarding corporate reputation and ensuring regulatory compliance. Third, leverage demonstrates a positive relationship with tax avoidance, reflecting the strategic utilization of interest expenses as deductible components that reduce taxable income. Despite offering conceptual contributions, this study is limited by the absence of direct empirical testing. Future research is therefore encouraged to employ panel data analysis and incorporate additional variables, such as corporate governance mechanisms, to enhance robustness and generalizability.