Journal of Economic, Finance Research and Review (JEFRR)

How Sales Growth Shapes Tax Behavior in Indonesia’s Sharia Firms

Sulistyo, Budi, Kamal, Yulianto Syafiq

31 January 2026 · Vol. 2, Issue 1, pp. 39-49

DOI: 10.65150/EP-jefrr/V2E1/2026-05

Abstract

This study is motivated by the inconsistency of prior empirical findings regarding the relationship between earnings management, foreign ownership, and tax aggressiveness among publicly listed firms in Indonesia, particularly within the context of the Islamic capital market. The study aims to examine the effect of earnings management and foreign ownership on corporate tax aggressiveness and to investigate the moderating role of sales growth in these relationships. This research employs a quantitative approach using panel data derived from the financial statements of firms included in the Jakarta Islamic Index 70 (JII70) over the period 2020–2024. Hypotheses are tested using Moderated Regression Analysis (MRA). The results indicate that earnings management and foreign ownership significantly influence tax aggressiveness, while sales growth significantly strengthens the effects of both earnings management and foreign ownership on tax aggressiveness. These findings suggest that sales growth serves as an important contingency factor that amplifies the intensity of corporate tax planning behavior. The study contributes to the literature by highlighting how growth dynamics interact with governance mechanisms in shaping tax behavior within a Sharia-compliant capital market.

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Sulistyo, Budi, Kamal, & Yulianto Syafiq (2026). How Sales Growth Shapes Tax Behavior in Indonesia’s Sharia Firms. Journal of Economic, Finance Research and Review, 2(1), 39-49. https://doi.org/10.65150/EP-jefrr/V2E1/2026-05

@article{Sulistyo2026,
  title   = {How Sales Growth Shapes Tax Behavior in Indonesia’s Sharia Firms},
  author  = {Sulistyo and Budi and Kamal and Yulianto Syafiq},
  journal = {Journal of Economic, Finance Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {1},
  pages   = {39-49},
  doi     = {10.65150/EP-jefrr/V2E1/2026-05},
  url     = {https://doi.org/10.65150/EP-jefrr/V2E1/2026-05}
}

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