Pengaruh Ukuran Perusahaan dan Penghindaran Pajak Terhadap Manajemen Laba Pada Perusahaan Manufaktur yang Terdaftar di BEI 2020-2023

Abstract

This study aims to analyze the effect of firm size and tax avoidance on earnings management in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. With a Research Population of 120 Observations from 30 Manufacturing Companies in this study sample that meet these criteria. The study is motivated by the phenomenon of earnings management practices and tax avoidance carried out by companies to meet investor perceptions and minimize tax burdens. The research uses a descriptive quantitative approach with secondary data obtained from annual financial reports using purposive sampling. Firm size is measured using the natural logarithm of market capitalization, while tax avoidance is measured using the Cash Effective Tax Rate (CETR). The dependent variable, earnings management, is measured using the Modified Jones Model approach. The data analysis technique used is panel data regression with the Random Effect Model (REM). The results show that tax avoidance has a significant positive effect on earnings management, while firm size does not have a significant effect. Simultaneously, both independent variables influence earnings management, although the contribution is relatively small at 5.75%. These findings indicate that companies tend to use tax avoidance as a strategy in practicing earnings management. This study provides important implications for investors and regulators in understanding earnings management practices and in formulating more effective tax supervision policies.

Keywords

Earnings Management; Firm Size; Tax Avoidance; Manufacturing Company; IDX