The Influence of Tax Planning, Accrual Profit Management and Capital Structure on Company Performance with Firm Size as Moderator (Case Study on Property and Real Estate Companies listed on Indonesia Stock Exchange in 2016-2021)

Abstract

This study is to examine the effect of tax planning, accrual earnings management and capital structure on firm performance through firm size as a moderating variable. This research was conducted at manufacturing companieslisted on the Indonesia Stock Exchange (IDX) in 2016-2021. The method of determining the sample in this study used the purposive sampling method so that from 49 populations a sample of 43 companies was obtained. The datain this study were analyzed using panel data regression analysis techniques. The results of this study indicate that.The results of the study prove that tax planning has an effect on company performance, accrual earnings management has no effect on company performance, and capital structure has an effect on company performance. Tax planning affects firm performance through firm size as a moderating variable, accrual earnings management influences firm performance through firm size as a moderating variable and capital structure influences firm performance through firm size as a moderating variable. Purpose: (1) To analyze and test the influence of Tax Planning on Company Performance, (2) To analyze and test the influence of Accrual Profit Management on Company Performance, (3) To analyze and test the influence of Capital Structure on Company Performance, (4) To analyze and test whether company size moderates tax planning on company performance, (5) To analyze and test whether Company Size moderates Accrual Profit Management on Company Performance, (6) To analyze and test whether company size moderates capital structure on company performance Design/methodology/approach – Quantitative Research limitations/implications – (1) The use of relatively small sample data, namely only the property and real estate subsector listed on the Indonesia Stock Exchange with a sample size of 43 companies, (2) The research time period is limited, starting from 2016 to 2021, (3) Lack of experience with earnings management practices that apply in the field, (4) This research only uses company size as a moderating variable. (5) Many companies do not disclose their financial reports regularly, so the company is considered not to have fulfilled this aspect of the assessment. Practical implications – The results of this research give rise to managerial implications, namely that tax planning, accrual profit management and capital structure have a positive effect on company performance in property and real estate companies listed on the Indonesia Stock Exchange. The results of this research can provide tax planning due to tax management by carrying out tax planning with Tax savings will increase company profitability which will ultimately increase company value.