Determinants And Moderators of Tax Planning, With Firm Size As The Control Variable

Abstract

This study examines the factors influencing and moderating tax planning,
with firm size as a control variable. Tax planning is essential for
optimizing tax liabilities, ensuring compliance, and boosting profitability.
However, the factors affecting tax planning, especially in emerging
markets like Indonesia, are underexplored. The research focused on
contractor and real estate companies listed on the Indonesia Stock
Exchange (IDX) from 2017 to 2022. Using Moderated Regression Analysis
(MRA), the study tested several hypotheses. The findings revealed that
corporate governance does not directly affect tax planning, but
profitability influences tax planning and moderates the relationship
between corporate governance and tax planning. Additionally, firm size
does not control the impact of corporate governance on tax planning. This
study contributes to the literature by highlighting the moderating role of
profitability in the corporate governance-tax planning relationship,
especially in the Indonesian real estate and construction sectors, and
emphasizes the distinct regulatory and financial context of these
industries