Pengaruh Political Connection, Foreign Activity, dan CEO Overconfidence terhadap Tax Avoidance dengan Earning Management sebagai Variabel Moderasi pada Perusahaan Sektor Pertambangan di Bursa Efek Indonesia

Abstract

This study aims to examine the effect of Political Connection, Foreign Activity, and CEO Overconfidence on Tax Avoidance, with Earnings Management as a moderating variable, in mining sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2024. This research is associative in nature, employing secondary data obtained from companies’ financial statements and annual reports published on the IDX website (www.idx.co.id) and the respective corporate websites. The population of this study consists of 90 mining companies listed on the IDX within the study period. Based on the predetermined sampling criteria, 12 companies were selected as the research sample. The data were analyzed using panel data multiple linear regression with the Common Effect Model approach. The results reveal that Political Connection has a negative and insignificant effect on Tax Avoidance, while Foreign Activity shows a negative and significant effect on Tax Avoidance. CEO Overconfidence has a negative and insignificant effect on Tax Avoidance, and Earnings Management has a negative and significant effect on Tax Avoidance. Furthermore, Earnings Management does not significantly moderate the relationship between Political Connection and Tax Avoidance, nor does it moderate the effects of Foreign Activity or CEO Overconfidence on Tax Avoidance.