Tax aggressiveness in the energy industry: insights of emerging ‎countries

  • Authors

    • Enggar Diah Puspa Arum Universitas Jambi, Jambi, Indonesia
    • Rico Wijaya Universitas Jambi, Jambi, Indonesia
    • Ilham Wahyudi Universitas Jambi, Jambi, Indonesia
    https://doi.org/10.14419/2eq43940

    Received date: May 10, 2025

    Accepted date: May 29, 2025

    Published date: June 1, 2025

  • Corporate Governance; Moderation; Operational Efficiency; Profitability; Tax Avoidance

  • Abstract

    Effective tax policy is crucial to achieving the Sustainable Development Goals (SDGs) globally. Various strategies are used to ‎manage and control aggressive acts in tax planning as part of policies pertaining to tax aggressiveness. This study aims to examine the moderating effect of profitability on the relationship between financial ratios and monitoring on tax aggressiveness in the energy industries of ‎Indonesia and Malaysia. Profitability is measured by return on assets (ROA), financial ratios used are inventory intensity, capital intensity, ‎and sales growth, while monitoring is measured by the number of audit committees. Quantitative research is developed to investigate an associative relationship between variables. A total of 214 data from energy companies listed on Indonesia Stock Exchange (IDX) and 78 data ‎from energy companies on Bursa Malaysia in 2020-2022, examined by regression to analyze the moderation of return on asset (ROA) on ‎tax aggressiveness. The findings demonstrated that tax aggressiveness has not been impacted by inventory intensity, capital intensity, sales ‎growth, and audit committee both of energy industries in Indonesia and Malaysia. Nonetheless, the study demonstrates that ROA may ‎moderate the association between inventory intensity, capital intensity, sales growth, and audit committee on tax aggressiveness in energy ‎industries in Indonesia and Malaysia. ROA, a measure of a company’s financial performance, has a significant impact on how financial ‎ratios, monitoring and tax aggressiveness interactions interact. A company can use ROA as a metric to evaluate its ability to adopt aggressive tax strategies in emerging countries, such as Indonesia and Malaysia.

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    Arum, E. D. P., Wijaya, R., & Wahyudi, I. (2025). Tax aggressiveness in the energy industry: insights of emerging ‎countries. International Journal of Accounting and Economics Studies, 12(2), 35-42. https://doi.org/10.14419/2eq43940