PENGARUH EARNINGS MANAGEMENT DENGAN DIMODERASI KONEKSI POLITIK TERHADAP TAX AVOIDANCE

Abstract

This research was conducted to obtain empirical evidence regarding the effect of Earnings Management, firm size, leverage, profitability, institutional ownership, and audit committee as independent variables on tax avoidance with political connection moderating Earnings Management. This type of research is a quantitative research using secondary data sources obtained from the company’s financial statements.The population used in this study are consumer cyclicals and consumer non-cyclicals sector companies listed on the Indonesia Stock Exchange (IDX) in the 2020-2022 period. In this study, the sampling technique used was the purposive sampling method with 5 predetermined research criteria to obtain a total sample of 58 companies or as many as 174 research data. The data analysis technique in this study used multiple regression analysis to test the hypothesis. The results of the analysis of this study indicate that the variable firm size and profitability has a significant positive effect on tax avoidance and leverage has a significant negative effect on tax avoidance. Meanwhile, the variable Earnings Management, institutional ownership, and audit committee have no effect on tax avoidance, with political connection does not moderate the influence of Earnings Management on tax avoidance.