•  
  •  
 

Abstract

This study aims to analyze the effect of tax avoidance, changes in tax rates, and sustainability disclosures on earnings management. The sample in this study is public companies listed on the IDX for the period 2018–2021. The results of this study indicate that tax avoidance has no effect on earnings management. In addition, after the reduction in the corporate income tax rate, companies tend to conduct earnings management to reduce revenue. In the sustainability aspect, environmental sustainability disclosure has no effect on earnings management, while social sustainability disclosure has a positive effect on earnings management. The results of this study can be a consideration for the DGT and OJK in evaluating policies to reduce corporate tax rates, and sustainability disclosures.

References

[1] Abeysekera, I, Li, F, & Lu, Y 2021, ‘Financial disclosure quality and sustainability disclosure quality. A case in China’, PLoS ONE, vol. 16, no. 5, p. e0250884. doi: https://doi.org/10.1371/journal.pone.0250884.

[2] Abubakar, AH, Mansor, N, & Wan-Mohamad, WIA 2021, ‘Corporate tax avoidance, free cash flow and real earnings management: Evidence from Nigeria. Universal Journal of Accounting and Finance, vo. 9, no. 1, pp. 86-97. doi: https://doi.org/10.13189/ujaf.2021.090109.

[3] Afrizal, A, Putra, WE, Yuliusman, Y, & Hernando, R 2020, ‘The effect of accounting conservatism, CSR disclosure and tax avoidance on earnings management: Some evidence from listed companies in INDONESIA’, International Journal of Advanced Science and Technology, vol. 29, no. 4, pp. 1441-1456.

[4] Andriani, RA, Suherman, A, & Andini, MD 2021, ‘Inisiatif lingkungan dan tipe manajemen laba: Pengujian terhadap manajemen laba akrual dan manajemen laba riil’, Jurnal Buana Akuntansi, vol. 6, no. 2, pp. 63-77. doi: https://doi.org/10.36805/akuntansi.v6i2.1751.

[5] Antonius, R, & Tampubolon, LD 2019, ‘Analisis penghindaran pajak, beban pajak tangguhan, dan koneksi politik terhadap manajemen laba’, Jurnal Akuntansi, Keuangan, dan Manajemen, vol. 1, no. 1, pp. 39-52. doi: https://doi.org/10.35912/jakman.v1i1.5.

[6] Aronmwan, EJ, & Okafor, C 2019, ‘Corporate tax avoidance: Review of measures and prospects’, International Journal of Accounting & Finance (IJAF), vol. 8, no. 2, pp. 21-42.

[7] Asmara, LY, & Widiastuty, E 2023, ‘Pengaruh kinerja lingkungan dan leverage terhadap manajemen laba’, Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), vol/ 7, no. 2, pp. 1123–1135. doi: https://doi.org/10.31955/mea.v7i2.3110.

[8] Astriah, SW, Akhbar, RT, Apriyanti, E, & Tullah, DS 2021, ‘Pengaruh ukuran perusahaan, profitabilitas dan leverage terhadap manajemen laba’, Jurnal Akuntansi, vol. 10, no. 2, pp. 387-401.

[9] Budiantoro, H, Fazriyani, DN, Santosa, PW, Zhusryn, AS, & Lapae, K 2022, ‘Pengaruh beban pajak tangguhan, tax planning dan tax avoidance terhadap manajemen laba dengan GCG sebagai pemoderasi’, Owner: Riset dan Jurnal Akuntansi, vol. 6, no. 4, pp. 3639-3644. doi: 10.33395/owner.v6i4.1214.

[10] Citrajaya, D, & Ghozali, I 2020, ‘Pengaruh corporate social responsibility dan aktivitas CSR dalam dimensi tata kelola, lingkungan, dan sosial terhadap manajemen laba (Studi empiris pada perusahaan non keuangan yang terdaftar di Bursa Efek Indonesia pada tahun 2017-2018)’, Diponegoro Journal of Accounting, vol. 9, no. 2, pp. 1-14.

[11] Davita, N, Prajaningtyas, W, & Firmansyah, A 2022, ‘Peran moderasi kebijakan utang pada hubungan pengungkapan keberlanjutan dan nilai perusahaan’, Jurnal Akuntansi, vol. 14, no. 1, pp. 82-99. doi: https://doi.org/10.28932/jam.v14i1.4582.

[12] Dechow, PM, Sloan, RG, & Sweeney, AP 1995, ‘Detecting earnings management’, The Accounting Review, vol. 70, no. 2, pp. 193-225. http://www.jstor.org/stable/248303.

[13] Dimitropoulos, PE 2022, ‘Corporate social responsibility and earnings management in the EU: A panel data analysis approach’, Social Responsibility Journal, vol. 18, no. 1, pp. 68-84. doi: https://doi.org/10.1108/SRJ-04-2020-0156.

[14] Dyreng, S, & Maydew, EL 2017, ‘Virtual issue on tax research published in the Journal of Accounting Research’, Kenan Institute of Private Enterprise Research Paper, 18-4. viewed 14 November 2023, https://ssrn.com/abstract=3068168.

[15] Elkington, J 1998, ‘Accounting for the triple bottom line’, Measuring Business Excellence, vol. 2, no. 3, pp. 18-22. doi: https://doi.org/10.1108/eb025539.

[16] Farha, HM, Surbakti, LP, & Praptiningsih, P 2022’, ‘Perspektif lingkungan dan real earnings management: Pembuktian pada perusahaan non-keuangan di Indonesia’, Journal of Economic, Management, Accounting and Technology, vol. 5, no. 1, pp. 56-69. doi: https://doi.org/10.32500/jematech.v5i1.1978.

[17] Freeman, RE 1984, Strategic management: A stakeholder approach, Pitman.

[18] Ftouhi, K, & Ghardallou, W 2020, ‘International tax planning techniques: A review of the literature’, Journal of Applied Accounting Research, vol. 21, no. 2, pp. 329-343. doi: https://doi.org/10.1108/JAAR-05-2019-0080.

[19] García-Sánchez, IM, Hussain, N, Khan, SA, & Martínez- Ferrero, J 2020, ‘Managerial entrenchment, corporate social responsibility, and earnings management’, Corporate Social Responsibility and Environmental Management, vol. 27, no. 4, pp. 1818-1833. doi: https://doi.org/10.1002/csr.1928.

[20] Garfatta, R, Zorgati, I, & Zaabi, E 2022, ‘Do Tunisian firms manage their earnings around the corporate tax rate cut?’, Investment Management and Financial Innovations, vol. 19, no. 1, pp. 350-359. doi: https://doi.org/10.21511/imfi.19(1).2022.27.

[21] Gerged, AM, Al-Haddad, LM, & Al-Hajri, MO 2020, ‘Is earnings management associated with corporate environmental disclosure? Evidence from Kuwaiti listed firms’, Accounting Research Journal, vol. 33, no. 1, pp. 167-185. doi: https://doi.org/10.1108/ARJ-05-2018-0082.

[22] Gerged, AM, Albitar, K, & Al-Haddad, L 2023, ‘Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures’, International Journal of Finance & Economics, vol. 28, no. 3, pp. 2789-2810. doi: https://doi.org/10.1002/ijfe.2564.

[23] Godfrey, J, Hodgson, A, Tarca, A, Hamilton, J, & Holmes, S 2010, Accounting theory (7th edition), Wiley.

[24] Gonçalves, T, Gaio, C, & Ferro, A 2021, ‘Corporate social responsibility and earnings management: Moderating impact of economic cycles and financial performance’, Sustainability, vol. 13, no. 17, p. 9969. doi: https://doi.org/10.3390/su13179969.

[25] Grimaldi, F, Caragnano, A, Zito, M, & Mariani, M 2020, ‘Sustainability engagement and earnings management: The Italian context’, Sustainability, vol. 12, no. 12, p. 4881. doi: https://doi.org/10.3390/su12124881.

[26] Habbash, M, & Haddad, L 2020, ‘The impact of corporate social responsibility on earnings management practices: Evidence from Saudi Arabia’, Social Responsibility Journal, vol. 16, no. 8, pp. 1073-1085. doi: https://doi.org/10.1108/SRJ-09-2018-0232.

[27] Hanlon, M, & Heitzman, S 2010’, A review of tax research’, Journal of Accounting and Economics, vol. 50, no. 2-3, pp. 127-178. doi: https://doi.org/10.1016/j.jacceco.2010.09.002.

[28] Herusetya, A, & Stefani, C 2020’, ‘The association of tax aggressiveness on accrual and real earnings management’, Journal of Accounting and Investment, vol. 21, no. 3, pp. 434-451. doi: https://doi.org/10.18196/jai.2103158.

[29] IFRS 2018, Conceptual framework for financial reporting, International Financial Reporting Standards, International Accounting Standards Board. viewed 14 November 2023, https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/.

[30] Jensen, MC, & Meckling, WH 1976, ‘Theory of the firm: Managerial behavior, agency costs and ownership structure’, Journal of Financial Economics, vol. 3, no. 4, pp. 305-360. doi: https://doi.org/10.1016/0304-405X(76)90026- X.

[31] Jurnali, T, & Adfiani, A 2021, ‘Kualitas pengungkapan lingkungan dan dewan independensi terhadap kinerja perusahaan’, CoMBInES-Conference on Management, Business, Innovation, Education and Social Sciences, vol. 1, no. 1, pp. 1724-1743.

[32] Kumala, R, & Siregar, SV 2021, ‘Corporate social responsibility, family ownership and earnings management: The case of Indonesia’, Social Responsibility Journal, vol. 17, no. 1, pp. 69-86. doi: https://doi.org/10.1108/SRJ-09-2016- 0156.

[33] Kurniawansyah, D 2018, ‘Apakah manajemen laba termasuk kecurangan?: Analisis literatur’, Jurnal Riset Akuntansi dan Bisnis Airlangga, vol. 3, no. 1, pp. 341-356. doi: https://doi.org/10.20473/jraba.v3i1.46055.

[34] Kurniawati, D 2021, ‘Pengaruh pengungkapan corporate social responsibility terhadap manajemen laba riil dengan mekanisme corporate governance sebagai pemoderasi’, Jurnal Buana Akuntansi, vol. 6, no. 2, pp. 1-29. doi: https://doi.org/10.36805/akuntansi.v6i2.1734.

[35] Lim, SA 2013, ‘Accrual dan real earning management dalam merespon penurunan tarif pajak penghasilan badan tahun 2010’, Jurnal Keuangan dan Perbankan, vol. 17, no. 2, pp. 253-266. doi: https://doi.org/10.26905/jkdp.v17i2.744.

[36] Liu, H, & Lee, HA 2019, ‘The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies’, International Journal of Accounting & Information Management, vol. 27, no. 4, pp. 632-652. doi: https://doi.org/10.1108/IJAIM-08-2018-0095.

[37] Manuel, D, Sandi, S, Firmansyah, A, & Trisnawati, E 2022, ‘Manajemen laba, leverage dan penghindaran pajak: Peran moderasi tanggung jawab sosial perusahaan’, Jurnal Pajak Indonesia (Indonesian Tax Review), vol. 6, no. 2S, pp. 550-560. doi: https://doi.org/10.31092/jpi.v6i2S.1832.

[38] Maysani, NP, & Suaryana, IGNA 2019, ‘Pengaruh tax avoidance dan mekanisme corporate governance pada manajemen laba’, E-Jurnal Akuntansi, vol. 28, no. 3, pp. 1886- 1903. doi: https://doi.org/10.24843/EJA.2019.v28.i03.p16.

[39] Nguyen, LT 2024, ‘The relationship between corporate sustainability performance and earnings management: Evidence from emerging East Asian economies’, Journal of Financial Reporting and Accounting, vol. 22, no. 3, pp. 564- 582. doi: https://doi.org/10.1108/JFRA-09-2021-0302.

[40] Osadchy, EA, Akhmetshin, EM, Amirova, EF, Bochkareva, TN, Gazizyanova, YY, & Yumashev, AV 2018, ‘Financial statements of a company as an information base for decision-making in a transforming economy’, European Research Studies Journal, vol. 21, no. 2, pp. 339-350. doi: 10.35808/ersj/1006.

[41] Palacios-Manzano, M, Gras-Gil, E, & Santos-Jaen, JM 2021, ‘Corporate social responsibility and its effect on earnings management: An empirical research on Spanish firms’, Total Quality Management & Business Excellence, vol. 32, no. 7-8, pp. 921-937. doi: https://doi.org/10.1080/14783363.2019.1652586.

[42] Perwita, AN, & Nuswantara, A 2019, ‘Earnings management within three tax reforms era’, KnE Social Sciences, vol. 3, no. 11, pp. 915-926. doi: 10.18502/kss.v3i11.4059.

[43] Poli, S 2019, ‘How do Italian private companies respond to a reduction in the corporate standard tax rate? A focus on the ownership gender diversity effect’, International Journal of Accounting and Financial Reporting, vol. 9, no. 4, pp. 205-220. doi: https://doi.org/10.5296/ijafr.v9i4.15692.

[44] Pratiwi, HG, & Nurdin, F 2023, ‘Earnings management in response to corporate income tax rates changes’, Jurnal Akuntansi dan Perpajakan, vol. 9, no. 1, pp. 40-52. doi: https://doi.org/10.26905/ap.v9i1.9665.

[45] Pratiwi, IS, & Siregar, SV 2019, ‘The effect of corporate social responsibility on tax avoidance and earnings management: The moderating role of political connections’, International Journal of Business, vol. 24, no. 3, pp. 229- 248.

[46] Reza, M, & Asqolani, A 2022, ‘Pengaruh kompensasi direksi dan risiko perusahaan pada agresivitas pajak di Indonesia’, Jurnal Akuntansi Kontemporer, vol. 14, no. 1, pp. 1-17. doi: https://doi.org/10.33508/jako.v14i1.3111.

[47] Ruwanti, G, Candrarin, G, & Assih, P 2019, ‘Corporate social responsibility and earnings management: The role of corporate governance’, Humanities & Social Sciences Reviews, vol. 7, no. 5, pp. 1338-1347. doi: https://doi.org/10.18510/hssr.2019.75172.

[48] Scott, WR 2015, Financial accounting theory (7th edition), Pearson.

[49] Sekaran, U, & Bougie, R 2016, Research methods for business: A skill-building approach (7th edition), Wiley.

[50] Surbakti, LP 2023, ‘Pengaruh environmental policy, environmental pollution, environmental energy, dan environmental financial terhadap kualitas laba’, Akbis: Media Riset Akuntansi dan Bisnis, vol. 7, no. 1, pp. 17-22. doi: https://doi.org/10.35308/akbis.v7i1.7432.

[51] Suryani, A 2022, ‘Dampak penghindaran pajak dan pajak tangguhan terhadap manajemen laba’, Eksis: Jurnal Ilmiah Ekonomi dan Bisnis, vol. 13, no. 1, pp. 29-33. doi: http://dx.doi.org/10.33087/eksis.v13i1.298.

[52] Susanto, A, & Rahardjo, SN 2022, ‘The role of environmental performances in determining financial performances through corporate social responsibility’, Jurnal REKSA: Rekayasa Keuangan, Syariah dan Audit, vol. 9, no. 1, pp. 1-10. doi: https://doi.org/10.12928/jreksa.v9i1.4881.

[53] Susanto, YK, Adrianne, S, & Pirzada, K 2019, ‘Is tax aggressiveness an indicator of earnings management?’, Polish Journal of Management Studies, vol. 20, no. 2, pp. 516-527. doi: 10.17512/pjms.2019.20.2.43.

[54] United Nations 1987, Report of the world commission on environment and development: Our common future. viewed 14 November 2023, https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf.

[55] Wang, F, Xu, S, Sun, J, & Cullinan, CP 2020, ‘Corporate tax avoidance: A literature review and research agenda’, Journal of Economic Surveys, vol. 34, no. 4, pp. 793-811. doi: https://doi.org/10.1111/joes.12347.

[56] Wijaya, MH 2013, ‘Effect of corporate tax rate reduction on earnings management practices: A case study in Indonesia’, Jurnal Keuangan dan Perbankan, vol. 15, no. 2.

[57] Wijaya, M, & Martani, D 2011, ‘Praktik manajemen laba perusahaan dalam menanggapi penurunan tarif pajak sesuai UU no. 36 tahun 2008’, Simposium Nasional Akuntansi XIV Aceh 2011.

[58] Witjaksono, RB, & Djaddang, S 2018, ‘Valuasi kesadaran lingkungan, corporate social responsibility terhadap kualitas laba dengan moderasi komite audit’, Jurnal Ekonomi dan Bisnis, vol. 21, no. 1, pp. 97-114. doi: https://doi.org/10.24914/jeb.v21i1.1042.

Download

Share

COinS