THE ROLE OF COMPANY SIZE IN MODERATING RELATED PARTY TRANSACTIONS AND EARNINGS MANAGEMENT ON TAX AVOIDANCE IN MANUFACTURING COMPANIES FROM 2020 TO 2024
Abstract
This study aims to investigate the influence of Related Party Transactions (RPT) and earnings management on tax avoidance, with firm size as a moderating variable, in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2020–2024. A quantitative descriptive approach was employed, using a sample of 26 manufacturing companies, and the data were analyzed through multiple regression and Moderated Regression Analysis (MRA). The results reveal that RPT has a positive and significant effect on tax avoidance, whereas earnings management does not exhibit a significant impact. Additionally, firm size appears to weaken the relationship between RPT and tax avoidance, though not significantly, and does not moderate the relationship between earnings management and tax avoidance. These findings indicate that tax avoidance in manufacturing companies is more strongly influenced by related party transactions than by earnings management, while firm size does not consistently act as a moderating factor.
References
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Alkawsar, Rizky Mohammad. 2019. The Effect of Company Affiliate Transactions on Tax Avoidance in Manufacturing Companies in the Basic Chemical Industry Sub-Sector Listed on the Indonesia Stock Exchange from 2013 to 2017. Online Student Journal (Jom) in Accounting Vol. 1, No. 1.
Alqatan, A., & Khlif, H. (2020). Corporate Governance and Its Implications on Accounting and Finance. IGI Global. https://doi.org/10.4018/978-1-7998-4852-3.
Anggraeni, T., & Oktaviani, R. M. (2021). The Impact of Thin Capitalization, Profitability, and Company Size on Tax Avoidance. Journal of Accounting and Taxation, 21(2), 390-397. doi:http://dx.doi.org/10.29040/jap.v21i2.1530.
Anggoro, S. T., & Septiani, A. (2015). Analysis of the Effect of Tax Avoidance Behavior on Company Value with Transparency as a Moderating Variable. Diponegoro Journal of Accounting, 4(4), 437–446.
Aryotama, Putra & Firmansyah, Amrie. (2017). The Association Between Related Party Transactions and Tax Avoidance in Indonesia. AFEBI Accounting Review (AAR) Vol.04 No.02
Azizah, N., and Kusmuriyanto. (2016). The Effect of Related Party Transactions, Leverage, Commissioners and Direction Compensation on Tax Avoidance. Accounting Analysis, 5(4), 307–17-316.
Cindy, Cyntia & Meinie, Susanty. (2023). Analysis of Tax Avoidance in Manufacturing Companies in Indonesia. TSM Accounting Journal. Vol. 3, No. 3, pp. 13-26. E-ISSN: 2775-8907.
Darma, Sapta Setia. 2019. The Effect of Related Party Transactions and Thin Capitalization on Tax Avoidance Strategies. Pamulang University Scientific Accounting Journal Vol. 7, No. 1.
Ferdiawan, Y., & Firmansyah, A. (2017). The Effect of Political Connection, Foreign Activity, and Real Earnings Management on Tax Avoidance. Journal of Accounting and Finance Research, 5(3), 1601–1624. https://doi.org/10.17509/jrak.v5i3.9223.
Gunawan, C. T., & Surjandari, D. A. (2022). The Effect of Transfer Pricing, Capital Intensity, and Earnings Management on Tax Avoidance. Journal of Economics, Finance and Accounting Studies, 4(2), 184–190. https://doi.org/10.32996/jefas.
Hanlon, M., & Heitzman, S. (2010). A Review of Tax Research. Journal of Accounting and Economics, 50(2).
Helvin, Chindy & Trisnawati, Estralita. 2020. The Effect of Related Party Transactions on Tax Avoidance with the Moderating Variable of Corporate Governance Disclosure in Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2013-2017. Multiparadigma Accounting Journal Tarumanagara Vol. 2 April 2020 Edition.
Hutapea & Herawaty. (2020). The Effect of Profit Management, Leverage, and Profitability on Tax Avoidance with Company Size as a Moderating Variable. Proceedings of the 3rd National Seminar of Experts. Social Sciences and Humanities.
Karimah, H. N., & Taufiq, E. (2016). The Effect of Tax Avoidance on Company Value. EKOMBIS REVIEW: Scientific Journal of Economics and Business, 4(1), 72–86. https://doi.org/10.37676/ekombis.v4i1.156.
Oktaviani, I., & Munandar, A. (2017). The Effect of Profit Management on Tax Avoidance. Journal of Accounting and Finance Research, 5(2).
Park, Sungwon. (2018). Related Party Transactions and Tax Avoidance of Business Groups.
Sustainability. MDPI, Open Access Journal, vol. 10(10).
Purba. (2018). The Influence of Earnings Management, Audit Quality, and CEO Duality on Tax Avoidance. The Accounting Journal Vol 3, No 1.
Putra & Jati. (2018). Company Size as a Moderating Variable of the Influence of Profitability on Tax
Avoidance. E-Journal of Accounting, Udayana University Vol. 25.2.
Putri, N. A., & Nugrahanti, Y. W. (2021). Company Size as a Moderating Variable. Journal of Accounting Science, 9(3).
Rahmawati, S. (2017). Agency Conflict and Corporate Governance in Indonesia (Faisal, Ed.). Syiah Kuala University Press.
Saputra, A, W., Suwandi, M., Suhartono. (2020). The Effect of Leverage and Capital Intensity on Tax Avoidance with Company Size as a Moderating Variable. Isafir: Islamic Accounting and Finance Review.
Sari, N., Luthan, E., & Syafriyeni, N. (2020). The Influence of Profitability, Leverage, Independent Commissioners, Institutional Ownership, and Company Size on Tax Avoidance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2014-2018. Scientific Journal of Batanghari University Jambi. Vol. 20, No. 2 (2020).
Scott, William R. 2015. Financial Accounting Theory. Second Edition. Canada: Practice Hall. Septiadi, I., Robiansyah, A., & Suranta, E. (2017). The Influence of Profit Management,
Corporate Governance, and Corporate Social Responsibility on Tax Avoidance (An
Empirical Study of Mining and Agricultural Companies Listed on the IDX 2013-2015).
Journal of Applied Managerial Accounting.
Setiorini, et al. (2017). Earnings Management, Corporate Governance, and Tax Avoidance. Fairness
Journal Vol. 7, No. 1.
Susanti, R., & Firmansyah, D. (2020). The Effect of Related Party Transactions on Tax Avoidance.
Journal of Accounting and Finance, 22(1).
Utomo, A, B., Fitria, G, N. (2020). Company Size Moderates the Effect of Capital Intensity and Profitability on Tax Aggressiveness. Esensi: Journal of Business and Management Vol. 10 (2).
Wijayanti, Y. C., & Merkusiwati. (2017). The Effect of Independent Commissioner Proportion, Institutional Ownership, Leverage, and Company Size on Tax Avoidance. E-Journal of Accounting, Udayana University Vol. 20.1. July (2017): 699-728
Published
2025-10-16
How to Cite
PURNAMASARI, Puji Endah; SARTIKA, Farahiyah; AFIFAH, Nur.
THE ROLE OF COMPANY SIZE IN MODERATING RELATED PARTY TRANSACTIONS AND EARNINGS MANAGEMENT ON TAX AVOIDANCE IN MANUFACTURING COMPANIES FROM 2020 TO 2024.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 969-980, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3391>. Date accessed: 15 may 2026.
Section
Articles
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