The effect of earnings management on tax avoidance with political connections as a moderating variable




Tax Avoidance, Earnings Management, Political Connections, Firm Size, Leverage, Profitability, Firm Value, Firm Age.


This study aims to determine the effect of earnings management on tax avoidance and the role of political connections in moderating those relationships. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period. There are 234 samples out of 835 total observations, produced by using purposive sampling. This study was tested by using Multiple Linear Regression Analysis and Moderated Regression Analysis. The results show that earnings management has a significant positive effect on tax avoidance and political connections strengthen the effect of earnings management on tax avoidance. This research used several control variables as well, which are firm size, leverage, profitability, firm value, and firm age, and the results show that profitability has a significant negative effect on tax avoidance, the firm value partially has a significant positive effect on tax avoidance, while firm size, leverage, and firm age have no significant effect on tax avoidance.


Download data is not yet available.


Aminah, C. and Yohana, Y.S. (2017). The Influence of Compay Size, Fixed Asset Intensity, Leverage, Profitability, and Political Connection to Tax Avoidance. AFEBI Acoounting Review, 2(2).

Arief, R.A., Pratomo, D. & Dillak, V.J. (2016). Pengaruh Manajemen Laba terhadap Agresivitas Pajak (Studi pada Perusahaan Batubara yang Terdaftar di Bursa Efek Indonesia Periode 2011-2014). E-Proceeding of Management, 3(3).

Arieftiara, D., Utama, S., Wardhani, R. & Rahayu, N. (2015). Analisis Pengaruh Strategi Bisnis terhadap Penghindaran Pajak. Bukti Empiris di Indonesia. Simposium Nasional Akuntansi XVIII KAPd Medan.

Ayers, B.C., John, J. & Stacie, L. (2009). Taxable Income as a Performance Measure: The Effects of Tax Planning and Earnings Quality. Contemporary Accounting Research, 26(1), 15-54.

Belkaoui, A.R. (2012). Accounting Theory Edisi Kelima. Salemba Empat: Jakarta.

Chen, S., Chen, X., Cheng, Q. & Shevlin, T. (2010). Are Family Firms More Tax Aggressive Than Non-family Firms?. Journal of Financial Economics, 95, 41-61.

Derazhid, C. and Hao, Z. (2003). Effective Tax Rates And The Industrial Policy Hypothesis: Evidance From Malaysia. Journal Of International Accounting Auditing And Taxation, 12(1).

Dyreng, S.D., Hanlon, M. & Maydew, E.L. (2008). Long Run Corporate Tax Avoidance. The Accounting Review, 83(1), 61-82.

Faccio, M. (2006). Politically Connected Firms. The American Economic Review, 96(1), 369-386.

Ferdiawan, Y. and Firmansyah, A. (2017). Pengaruh Political Connection, Foreign Activity, Dan, Real Earnings Management Terhadap Tax Avoidance. Jurnal Riset Akuntansi Dan Keuangan, 5(3), 1601-1624.

Gomez, E.T. and Jomo, K.S. (2009). Malaysia’s Political Economy: Politics, Patronage And Profits: CUP Archive.

Hariyanto, L. and Juniarti. (2014). Pengaruh Family Control, Firm Risk, Firm Size Dan Firm Age Terhadap Profitabilitas Dan Nilai Perusahaan Pada Sektor Keuangan. Business Accounting Review, 2(1).

Harjito, A. and Martono. (2010). Manajemen Keuangan. Yogyakarta: Ekonisia.

Hormati, A. (2009). Karakteristik Perusahaan Terhadap Kualitas Implementasi Corporate Governance. Jurnal Keuangan dan Perbankan, 13(2).

Huda, R. (2016). Perdebatan di Seputar Tax Avoidance. (Accessed August 4, 2021)

Jensen, M.C. and Meckling, W.H. (1976). Theory of The Firm: Managerial Behaviour, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.

Kim, C. and Zhang, L. (2016). Corporate Political Connections and Tax Aggressiveness. Contemporary Accounting Research, 53(1), 78-114.

Kothari, S.P., Leone, A.J. & Wasley, C.E. (2005). Performance Matched Discretionary Accrual Measures. Journal of Accounting and Economics, 39(1), 163-197.

Krueger, A.O. (1973). The Political Economy pf the Rent-Seeking Society. The American Economic Review, 64 (3), 291-303.

Kurniasih, T. and Sari, M.R. (2013). Pengaruh ROA, Leverage, Corporate Governance, Ukuran Perusahaan dan Kompensasi Rugi Fiskal Pada Tax Avoidance. Buletin Studi Ekonomi, 18 (1).

Leuz, C. and Gee, F.O. (2006). Political Relationships, Global Financing and Corporate Tranparency: Evidence from Indonesia. Journal of Financial Economics, 81 (2), 411-439.

Machdar, N.M. (2019). Agresivitas Pajak dari Sudut Pandang Manajemen Laba. Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT, 4(1).

Maulana, A., Sari, R.H.D.P. & Wibawaningsih, E.J. (2021). Analisis Pengaruh Kompensasi Eksekutif, Profitabilitas Perusahaan dan Leverage Terhadap Tax Avoidance. Konferensi Riset Nasional Ekonomi, Manajemen, dan Akuntansi, 2, 1151-1170.

Negara, A.A.G.R.P. and Saputra, I.D.G.D. (2017). Pengaruh Perencanaan Pajak Dan Beban Pajak Tangguhan Terhadap Manajemen Laba. E-Jurnal Akuntansi Universitas Udayana.

Novitasari, S. (2017). Pengaruh Manajemen Laba, Corporate Governance, dan Intensitas Modal terhadap Agresivitas Pajak Perusahaan (Studi Empiris pada Perusahaan Property dan Real Estate yang Terdaftar di BEI Periode Tahun 2010-2014). JOM Fekon, 4(1).

Phie, F.K. and Ng, S. (2020). Pengaruh Corporate Governance Dan Political Connections Terhadap Tax Avoidance Dan Dampaknya Pada Nilai Perusahan. Jurnal Sistem Informasi, Manajemen dan Akuntansi, 18(1), 21-46.

Rego, S.O. (2003). Tax Avoidance Activities of US Multinatinal Corporations. Contemporary Accounting Research, 20(4).

Richardson, G., Taylor, G. & Lanis, R. (2015). Financial Distress, Outside Directors And Corporate Tax Agresiveness Spanning The Global Financial Crisis: An Empirical Analysis. Journal of banking & finance, 52©, 112-129.

Rodriguez, E.F. and Arias, A.M. (2012). Do Bussines Characteristics Determine An Effective Taxe Rate. The chinese Economy, 45(6).

Rusydi, M.K. (2013). Pengaruh Ukuran Perusahaan Terhadap Aggressive Tax Avoidance di Indonesia. Jurnal Akuntansi Multiparadigma JAMAL, 4(2), 165-329.

Saifudin and Yunanda, D. (2016). Determinasi Return on Asset, Leverage, Ukuran Perusahaan, Kompensasi Rugi Fiskial dan Kepemilikan Institusi Terhadap Penghindaran Pajak. Jurnal Penelitian Ilmu Ekonomi Wiga, 6(2), 131-143.

Savitri, E. (2014). Analisis Pengaruh Leverage Dan Siklus Hidup Terhadap Manajemen Laba Pada Perusahaan Real Estate Dan Properti Yang Terdaftar di BEI. Jurnal Akuntansi, 3 (1).

Scott, W.R. (2000). Financial Accounting Theory. Second Edition. Toronto. Ontario: Pearson Education Canada Inc.

Scott, W.R. (2003). Financial Accounting Theory. Third Edition. Toronto. Ontario: Pearson Education Canada Inc.

Scott, W.R. (2009). Financial Accounting Theory. Fifth Edition. Canada: Prentice Hall.

Scott, W.R. (2012). Financial Accounting Theory. Sixth Edition. Toronto: Pearson Education Canada.

Scott, W.R. (2015). Financial Accounting Theory. Seventh Edition. Toronto: Pearson Prentice Hall.

Setiorini, H., Indriani, R. & Midiastuty, P.P. (2017). Manajemen Laba, Tata Kelola Perusahaan, Dan Penghindaran Pajak. Jurnal Fairness, 7(1), 15-30.

Sugiono, A. (2016). Panduan Praktis Dasar Analisis Laporan Keuangan Edisi Revisi. Cetakan 3. Jakarta: PT. Grasindo.

Sujoko and Soebiantoro. (2007). Pengaruh Struktur Kepemilikan Saham Leverage Faktor Intern Dan Faktor Ekstern Terhadap Nilai Perusahaan. Jurnal manajemen dan kewirausahaan, 9(1).

Sulistyanto, S. (2008). Manajemen Laba : Teori dan Empiris. Jakarta : Grasindo.

Surahman, A. and Firmansyah, A. (2017). Pengaruh Manajemen Laba Melalui Penyimpangan Akuntansi, Aktivitas Laba Riil dan Akrual Terhadap Agresivitas Pajak. ISSN: 2540-9816, 2(2).

Undang-Undang Nomor 28 Tahun 2007 Tentang Ketentuan Umum dan Tata Cara Perpajakan (UU KUP).

Wardani, D.K., Dewanti, W.I. and Permatasari, N.I. (2019). Pengaruh Manajemen Laba, Umur Perusahaan, Dan Leverage Terhadap Penghindaran Pajak. Jurnal Akuntansi AKUISISI, 15(2), 18-25.

Yunietha and Palupi, A. (2017). Pengaruh Corporate Governance Dan Faktor Lainnya Terhadap Manajemen Laba Perusahaan Publik Non Keuangan. Jurnal Bisnis Dan Akuntansi, 19(1a-4).

Zimmerman, J.L. (1983). Taxes And Firm Size. Journal Of Accounting And Economics, 5, 119-149.




How to Cite

Thalita, A. A., Hariadi, B., & Rusydi, M. K. . (2022). The effect of earnings management on tax avoidance with political connections as a moderating variable. International Journal of Research in Business and Social Science (2147- 4478), 11(5), 344–353.



Accounting Ecosystem and Tax Management