The effect of tax planning, deferred tax expense, and earnings management on tax avoidance with corporate governance as a moderating variable

Rani Nur Az-zahra Osman (), Wiralestari Wiralestari (), Ilham Wahyudi () and Enggar Diah Puspa Arum ()
Additional contact information
Rani Nur Az-zahra Osman: Universitas Jambi
Wiralestari Wiralestari: Universitas Jambi
Ilham Wahyudi: Universitas Jambi
Enggar Diah Puspa Arum: Universitas Jambi

Journal of Economics and Business Letters, 2026, vol. 6, issue 2, 18-29

Abstract: This study examines the effects of tax planning, deferred tax expenses, and earnings management on tax avoidance, with corporate governance as a moderating variable. The research sample comprises 52 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period, yielding 260 firm-year observation. Data analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS) through SmartPLS 4. The findings reveal that tax planning, deferred tax expenses, and earnings management each have a significant positive effect on tax avoidance. Corporate governance effectively moderates (weakens) the relationship between tax planning and tax avoidance and between earnings management and tax avoidance. However, corporate governance does not significantly moderate the effect of deferred tax expenses on tax avoidance. These findings offer theoretical contributions to agency and tax compliance theories in the Indonesian context and provide practical implications for tax authorities, regulators, and corporate management in designing more effective oversight mechanisms to mitigate aggressive tax avoidance practices.

Keywords: corporate governance; deferred tax expense; earnings management; SEM-PLS; tax avoidance; tax planning (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=13506 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:jeblpv:1746

Ordering information: This journal article can be ordered from
https://journal.priv ... BL/article/view/1746

DOI: 10.55942/jebl.v6i2.1746

Access Statistics for this article

More articles in Journal of Economics and Business Letters from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().