Executive Characteristics: The Effect of Accounting Conservatism, Financial Distress, Transfer Pricing on Tax Avoidance

Abstract

This study examines the moderating role of executive characteristics in
the relationship between accounting conservatism, financial distress,
transfer pricing, and tax avoidance. The research utilizes secondary
data obtained from the financial statements of companies operating in
the Basic Industry and Chemical manufacturing sectors listed on the
Indonesia Stock Exchange from 2019 to 2023. The analysis is conducted
using moderated regression analysis. The findings indicate that
accounting conservatism and transfer pricing do not have a significant
effect on tax avoidance, whereas financial distress exhibits a negative
relationship with tax avoidance. Furthermore, executive characteristics
do not moderate the relationship between accounting conservatism or
transfer pricing and tax avoidance. However, executive characteristics
positively moderate the relationship between financial distress and tax
avoidance.