Pengaruh Management Compensation, Pertumbuhan Pendapatan dan Firm Size Terhadap Tax Management

(Studi Empiris Pada Perusahaan Sektor Energy di Bursa Efek Indonesia Tahun 2019-2023)

Abstract

This study aims to analyze the effect of management compensation, revenue growth,
and firm size on tax management in energy sector companies listed on the Indonesia
Stock Exchange (IDX) during the 2019–2023 period. The research employed a
purposive sampling method, resulting in a final sample of 16 companies observed
over five years, thus generating 80 observations. Data used in this study were
secondary in nature, obtained from audited financial statements and annual reports
published by each company. The analytical method applied was panel data
regression with hypothesis testing conducted using the EViews 12 application. The
rationale for selecting these variables lies in their theoretical and practical
relevance, as management compensation may incentivize managers to adopt tax
strategies that optimize company resources, revenue growth reflects the company’s
ability to expand and generate taxable income, while firm size is often associated
with greater resources but also with closer scrutiny from regulators. The results of
the analysis show that, partially, management compensation has a positive effect on
tax management, indicating that higher compensation encourages managers to
implement more efficient tax strategies. Revenue growth also has a positive effect on
tax management, suggesting that companies experiencing increasing revenues are
more motivated to engage in tax planning to minimize tax burdens. Conversely, firm
size has a negative effect on tax management, implying that larger firms may be less
aggressive in tax planning due to reputational risks and greater oversight.
Simultaneously, the three variables—management compensation, revenue growth,
and firm size—were found to have a significant joint effect on tax management,
highlighting the importance of integrating managerial incentives, company
performance, and structural characteristics in understanding corporate tax
behavior.

Keywords: Management Compensation, Revenue Growth, Firm Size and Tax
Management