Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
How Sales Growth Shapes Tax Behavior in Indonesia’s Sharia Firms
Budi Sulistyo, Yulianto Syafiq Kamal
31 January 2026 · Vol. 2, Issue 1, pp. 39-49
DOI: 10.65150/EP-jefrr/V2E1/2026-05
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What is this article about?
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.
Article at a glance
- Published
- 31 January 2026
- Volume / issue / pages
- Vol. 2, Issue 1, pp. 39-49
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
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.
Keywords: Earnings management, foreign ownership, tax aggressiveness, sales growth, sharia stocks
Cite this article
Budi Sulistyo, & Yulianto Syafiq Kamal (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{Budi2026,
title = {How Sales Growth Shapes Tax Behavior in Indonesia’s Sharia Firms},
author = {Budi Sulistyo and Yulianto Syafiq Kamal},
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}
}Questions about this article
Who wrote this article?
Budi Sulistyo, Yulianto Syafiq Kamal.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 1, pages 39-49, published by EP Journals Group on 31 January 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E1/2026-05 (https://doi.org/10.65150/EP-jefrr/V2E1/2026-05).
How do I cite this article?
APA: Budi Sulistyo, & Yulianto Syafiq Kamal (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
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