The Effect of Related Party Transaction, Financial Distress, and Firm Size on Tax Avoidance with Earnings Management as Intervening Variable

related party transaction financial distress firm size tax avoidance earnings management

Authors

  • Dhian Mahardhika
    dhianmahardhika@yahoo.com
    A Post Graduate Student of Accounting Study Program, Mercubuana University
  • Dwi Asih Surjandari A Post Graduate Faculty Member of Accounting Study Program, Mercubuana University
August 3, 2022

Downloads

This study aims to determine the effect of related party transactions, financial distress, and firm size on tax avoidance with earnings management as an intervening variable. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange from 2018 - 2020, with a total of 168 companies. The sampling method used is a purposive sampling; 51 companies in the manufacturing sector are selected as samples. The analysis technique used is multiple linear regression and path analysis tests with the Eviews analysis tool. The results of this study are that related party transactions and financial distress have a negative effect on tax avoidance, while firm size has no effect on tax avoidance. Related party transactions and financial distress have no effect on earnings management, while firm size has a positive effect on earnings management. After being mediated by earnings management, firm size has a positive effect on tax avoidance, while related party transactions and financial distress have no effect on tax avoidance.