MANFAAT LABA UNTUK MENAMBAH UTANG DAN MENGURANGI PAJAK

The Benefits of Profit for Increasing Debt and Reducing Taxes. This study aims to find a simultaneous and partial impact on liquidity, asset structure, and profit on the capital structure. Multiple linear regression was used as a method for 25 retail corporations from 2011-2017. The findings indicate that corporations tend to maximize the utilization of internal financing from retained earnings. It is used to finance operational activities and business expansion so that the level of debt has decreased. However, the profit isn’t utilized by management to attract new creditors so that tax is higher. Therefore management must use the profit to increase corporate debt as a deduction from tax costs.