The study examines the influence of profitability and earnings management on corporate tax liabilities in manufacturing firms, suggesting implications for tax strategy.
Key Points
This study investigates the relationship between profitability, measured by gross and net profit margins, and earnings management, on corporate income tax payable.
Analyzed a sample of 63 manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2017.
Used descriptive statistical analysis, classic assumption tests, and multiple linear regression.
Collected secondary data from www.idx.co.id and the Indonesia Stock Exchange.
Gross profit margin significantly negatively impacts corporate income tax payable.
Net profit margin does not significantly affect corporate income tax payable.
Earnings management has a significant positive effect on corporate income tax payable.