Tax Avoidance in Asian Manufacturing Firms: A Cross-Country Analysis of Financial Attributes and Law Enforcement

Listya Eka Maharani (Universitas Negeri Surabaya, Surabaya, Indonesia)
Dian Anita Nuswantara (Universitas Negeri Surabaya, Surabaya, Indonesia)
Yuni Khoirotul Abdiyah (Universitas Airlangga, Surabaya, Indonesia)
Ruben Jr Nayve (Adamson University, Manila, Phillipines)
Siti Zabedah Binti Saidin (Universiti Utara Malaysia, Kedah, Malaysia)

Jurnal Dinamika Akuntansi dan Bisnis (JDAB)
Vol. 13 No. 1 (2026): March 2026

This study examines the impact of firm size, leverage, and profitability on tax avoidance across six Asian jurisdictions (IDX, Bursa Malaysia, SET, PSE, SGX, HKEX) from 2020 to 2024. Analyzing 981 manufacturing companies using the Random Effect Model and Moderated Regression Analysis, the results reveal that larger firm size and higher profitability significantly reduce tax avoidance, while leverage and law enforcement enforcement as a moderator show no significant effects. These findings suggest that internal strategic factors and economic incentives supersede external legal pressures, highlighting the limitations of deterrence theory in cross-country corporate taxation.