Analysis of the Effect of Tax Compliance, Tax Avoidance, and Financial Reporting Quality on Company Financial Performance: A Case Study on a Manufacturing Company in Indonesia

Authors

  • Sri Adella Fitri UIN Mahmud Yunus Batusangkar
  • Eko Sudarmanto Universitas Muhammadiyah Tangerang
  • Nabila Azura Qothrunnada IAI Pengeran Diponegoro Nganjuk
  • Pitri Wahyuni IAI Pengeran Diponegoro Nganjuk

DOI:

https://doi.org/10.58812/wsaf.v1i03.402

Keywords:

Tax Compliance, Tax Avoidance, Financial Reporting Quality, Financial Performance

Abstract

This research investigates the intricate relationships among tax compliance, tax avoidance, financial reporting quality, and corporate financial performance in Indonesian manufacturing companies. Employing a quantitative approach, data were collected from 150 companies and analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The study found robust positive associations between tax compliance and financial reporting quality with corporate financial performance. Furthermore, a nuanced relationship emerged between tax avoidance and financial performance, highlighting the importance of moderation. The empirical findings offer valuable insights for practitioners, policymakers, and academics seeking to understand the dynamics of tax-related activities and financial outcomes in the Indonesian manufacturing sector.

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Published

2023-11-30

How to Cite

Fitri, S. A., Sudarmanto, E., Qothrunnada, N. A., & Wahyuni, P. (2023). Analysis of the Effect of Tax Compliance, Tax Avoidance, and Financial Reporting Quality on Company Financial Performance: A Case Study on a Manufacturing Company in Indonesia. West Science Accounting and Finance, 1(03), 119–129. https://doi.org/10.58812/wsaf.v1i03.402

Issue

Vol. 1 No. 03 (2023): West Science Accounting and Finance

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Articles

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Copyright (c) 2023 Sri Adella Fitri, Eko Sudarmanto, Nabila Azura Qothrunnada, Pitri Wahyuni

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