Factors Affecting the Capital Structure and Its Impact on Tax Payment through Free Cash Flow to State-Owned Enterprises in Indonesia Stock Exchange

Abstract

This study aims to determine and analyze the impact of working capital, current year profit, sales growth, fixed assets, and firm size to tax payment through a capital structure and free cash flow on the stateowned enterprises in Indonesia Stock Exchange in 2013-2017. The design of this research is associative. Samples used as many as 20 state-owned enterprises that have gone public in Indonesia Stock Exchange. Collection method using the documentation and literature method. The analysis technique using path analysis, estimation model using ANOVA test and classical assumption, which consist of data normality, multicollinearity, heteroscedasticity, autocorrelation, and coefficient of determination test. The results showed: working capital, current year profit, sales growth, fixed assets, and firm size positive and significant effect on the capital structure, free cash flow, and the tax payment, but no significant effect on free cash flow through capital structure, and also no significant effect to the tax payment through the capital structure and through the free cash flow.