The Effect of Capital Structure and Profitability on Effective Tax Rate in Financial Sector Banking Companies Listed on the IDX Surabaya

This study aims to determine and analyze whether capital structure an profitability partially and simultaneously affect the effective tax rate. This type research is quantitative which is used to examine a predetermined population or sample. In this study, the sampling used purposive sampling technique, namely based on predetermined criteria as many as 29 finacial sector banking companies
on the Indonesia Stock Exchange during the 2019-2022 period. The data analiysis method was carried out through panel data analysis with Eviews 12. The regression model used is the common effect model using the classic assumption test, T test, F test and R Squared test.The test result through the T test found that the first hypothesis of this study waccepted so that the capital structure has no effect on the effective tax rate. In the second hypothesis of this study was rejected which states that profitability hasasignificant effect on the effective tax rate. While the F test states that capital structure and profitability together affect the effective tax rate.
Keyword: capital structure, profitability, effective tax rate and purposive sampling