Pengaruh Corporate Profitability, Multinasionalism, Company Size, Tax Haven Utilization, Dan Capital Intensity Perusahaan Terhadap Debt To Equity Ratio Sebagai Alat Ukur Dalam Thin Capitalization Pada Perusahaan Multinasional Yang Terdaftar Di Bursa Efek Indonesia (BEI) Periode 2022-2023

Abstract

This study aims to empirically examine the influence of corporate profitability, multinationalism, company size, tax haven utilization, and capital intensity on the debt-to-equity ratio, which serves as an indicator of thin capitalization practices among multinational companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2023 period. This research falls under the category of causal research and utilizes population data from multinational companies registered on the IDX within the specified period. The sampling technique applied was purposive sampling, resulting in 58 companies that met the criteria outlined in PMK No. 169/PMK.010/2015. Using a saturated sampling method, all eligible companies were included in the sample; however, after the elimination of extreme data, the final sample consisted of 40 companies with a total of 80 observations. The findings reveal that Corporate Profitability and Multinationalism have a negative and significant effect on thin capitalization. Meanwhile, Company Size and Capital Intensity show no significant influence. In contrast, Tax Haven Utilization demonstrates a positive and significant impact. Collectively, the five independent variables are proven to have a significant simultaneous effect on thin capitalization practices during the study period.