Tax Planning, Income Tax Expenses, and Banking Equity
DOI: https://doi.org/10.70184/2b580p81
tax planning, income tax expences, equity, banking
Abstract
Purpose: This study aims to analyze the effect of Tax Planning and Income Tax Expenses on the equity of banking companies listed on the Indonesia Stock Exchange for the period 2019–2023. The focus of this study is to examine the extent to which taxation strategies can influence a company's capital structure, particularly its equity component.
Research Design and Methodology: This study employs a quantitative, causal-comparative design. The population in this study comprises all companies in the banking sub-sector, and the sample was selected using purposive sampling, yielding 8 companies that met specific criteria. The data used are secondary, obtained from annual financial reports. Data analysis techniques include descriptive statistics, classical assumption tests, multiple linear regression analysis, t-tests, F-tests, and the coefficient of determination (R²), all conducted in SPSS version 27.
Findings and Discussion: The analysis results show that Tax Planning and Income Tax Expenses have a positive and significant effect on Equity, both partially and simultaneously. This proves that optimal management of taxation aspects can increase the equity value of banking companies.
Implications: The practical implications of this study indicate that companies need to integrate tax-planning strategies and income-tax expense management into their long-term financial policies to strengthen their capital position and increase their attractiveness to investors.
References
Affes, W., & Jarboui, A. (2023). The impact of corporate governance on financial performance: a cross-sector study. International Journal of Disclosure and Governance, 20(4), 374–394. https://doi.org/10.1057/s41310-023-00182-8
Afzali, M., & Thor, T. (2025). Corporate culture and tax planning. Review of Quantitative Finance and Accounting, 64(2), 861–898. https://doi.org/10.1007/s11156-024-01320-1
Agostino, M., & and Trivieri, F. (2019). Does Trade Credit Affect Technical Efficiency? Empirical Evidence from Italian Manufacturing SMEs* . Journal of Small Business Management, 57(2), 576–592. https://doi.org/10.1111/jsbm.12410
Alodat, A. Y., Salleh, Z., Hashim, H. A., & Sulong, F. (2022). Corporate governance and firm performance: empirical evidence from Jordan. Journal of Financial Reporting and Accounting, 20(5), 866–896. https://doi.org/10.1108/JFRA-12-2020-0361
Arhinful, R., Mensah, L., Amin, H. I. M., & Obeng, H. A. (2024). The influence of cost of debt, cost of equity and weighted average cost of capital on dividend policy decision: evidence from non-financial companies listed on the Frankfurt Stock Exchange. Future Business Journal, 10(1), 99. https://doi.org/10.1186/s43093-024-00384-8
Armstrong, C. S., Blouin, J. L., & Larcker, D. F. (2012). The incentives for tax planning. Journal of Accounting and Economics, 53(1), 391–411. https://doi.org/https://doi.org/10.1016/j.jacceco.2011.04.001
Astutik, R. E. P., & Mildawati, T. (2016). Pengaruh perencanaan pajak dan beban pajak tangguhan terhadap manajemen laba. Jurnal Ilmu dan Riset Akuntansi (JIRA), 5(3).
Beltrame, F., & Sclip, A. (2023). Analysing, Planning and Valuing Private Firms: New Approaches to Corporate Finance. Springer Nature.
Bird, R., & Davis-Nozemack, K. (2018). Tax Avoidance as a Sustainability Problem. Journal of Business Ethics, 151(4), 1009–1025. https://doi.org/10.1007/s10551-016-3162-2
Chen, Y., Niu, F., & Zeng, T. (2025). Tax planning and earnings management: their impact on earnings persistence. Journal of Applied Accounting Research, 26(2), 412–432. https://doi.org/10.1108/JAAR-02-2024-0071
De Luca, P. (2023). Corporate Finance. Springer Texts in Business and Economics. https://doi.org/10.1007/978-3-031-18300-3
Desita, C. (2016). Pengaruh Perencanaan Pajak Terhadap Ekuitas Pada Perusahaan Manufaktur Di Bursa Efek Indonesia. https://repositori.uma.ac.id/handle/123456789/1225
Donohoe, M. P., Gale, B. T., & Mayberry, M. A. (2024). Shareholder perceptions of external tax advisors in corporate tax planning. Contemporary Accounting Research, 41(2), 1311–1345. https://doi.org/10.1111/1911-3846.12945
Efendi, I., & Aris, M. A. (2014). Analisis Pengaruh Perencanaan Pajak (Tax Planning) Sebagai Upaya Menekan Beban Pajak Penghasilan Perusahaan Terhadap Ekuitas Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2011-2012. Universitas Muhammadiyah Surakarta. http://eprints.ums.ac.id/id/eprint/29276
Elinda, E., & Iskandar, I. (2023). Pengaruh Perencanaan Pajak (Tax Planning) Dan Beban Pajak Terhadap Nilai Ekuitas Perusahaan Pertambangan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2015-2020. Jurnal Ilmu Akuntansi Mulawarman (JIAM), 8(1), 15.
Elumilade, O. O., Ogundeji, I. A., Achumie, G. O., Omokhoa, H. E., & Omowole, B. M. (2022). Optimizing corporate tax strategies and transfer pricing policies to improve financial efficiency and compliance. Journal of Advance Multidisciplinary Research, 1(2 SE-Articles), 28–38. https://www.synstojournals.com/multi/article/view/147
Fadri, Z., & Fil, S. (2024). Perencanaan Strategis. Manajemen Dan Kepemimpinan, 42.
Fitriyani, S., Cusyana, S. R., & SE, M. A. (2023). Pengaruh Perencanaan dan Beban Pajak Terhadap Ekuitas Pada Perbankan Yang Terdaftar di Bursa Efek Indonesia Periode 2019-2021. http://repository.itb-ad.ac.id/id/eprint/240
Gabrielli, A., & Greco, G. (2023). Tax planning and financial default: role of corporate life cycle. Management Decision, 61(13), 321–355. https://doi.org/10.1108/MD-07-2022-0928
Graham, J. R. (2022). Presidential address: Corporate finance and reality. The Journal of Finance, 77(4), 1975–2049. https://doi.org/10.1111/jofi.13161
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2), 127–178. https://doi.org/https://doi.org/10.1016/j.jacceco.2010.09.002
Herrera-Echeverri, H., Cueto, D., Gaitán, S., & Fragua, D. (2025). Private equity activity and corporate governance’s spillover. Journal of Economics, Finance and Administrative Science, ahead-of-print(ahead-of-print). https://doi.org/10.1108/JEFAS-03-2024-0075
Higgins, D., Omer, T. C., & Phillips, J. D. (2015). The influence of a firm’s business strategy on its tax aggressiveness. Contemporary Accounting Research, 32(2), 674–702. https://doi.org/10.1111/1911-3846.12087
Hoang, V. A., Nguyen, H. C., Truong, B. T., Le, P. U., Phan, H. L., & Thai, T. H. A. (2024). Hierarchical complexity and seasoned equity offerings. Review of Behavioral Finance, 16(6), 973–997. https://doi.org/10.1108/RBF-03-2024-0058
Jensen, M. C., & Meckling, W. H. (1976). Also published in Foundations of Organizational Strategy. Journal of Financial Economics, 4, 305–360. http://ssrn.com/abstract=94043Electroniccopyavailableat:http://ssrn.com/abstract=94043http://hupress.harvard.edu/catalog/JENTHF.html
Johnson, M. (2024). Taxation in the Early Progressive Era: From Revenue to Social Policy. Review of Political Economy, 36(1), 59–75. https://doi.org/10.1080/09538259.2022.2164184
Khaoula, A., & Mohamed Ali, Z. (2012). Demographic Diversity in the Board and Corporate Tax Planning in American Firms. Business Management and Strategy, 3(1). https://doi.org/10.5296/bms.v3i1.1851
Knaisch, J. (2024). How to account for tax planning and its uncertainty in firm valuation? Journal of Business Economics, 94(4), 579–611. https://doi.org/10.1007/s11573-023-01177-1
Kołodziej, S., Maruszewska, E. W., & Niesiobędzka, M. (2023). The effect of income and expense shifting on the corporate income tax evasion. Central European Management Journal, 31(3), 364–373. https://doi.org/10.1108/CEMJ-08-2022-0091
Lanis, R., & Richardson, G. (2013). Corporate social responsibility and tax aggressiveness: a test of legitimacy theory. Accounting, Auditing & Accountability Journal, 26(1), 75–100. https://doi.org/10.1108/09513571311285621
Li, S., Gao, D., & Hui, X. (2021). Corporate governance, agency costs, and corporate sustainable development: a mediating effect analysis. Discrete Dynamics in Nature and Society, 2021(1), 5558175. https://doi.org/10.1155/2021/5558175
Lu, X., Xie, B., & Guo, Y. (2018). The trickle-down of work engagement from leader to follower: The roles of optimism and self-efficacy. Journal of Business Research, 84, 186–195. https://doi.org/https://doi.org/10.1016/j.jbusres.2017.11.014
Mardiasmo, M. B. A. (2016). PERPAJAKAN–Edisi Terbaru. Penerbit Andi.
Pasolo, M. R., Ermawati, Y., Sonjaya, Y., & Sumartono, S. (2023). Towards Optimal Taxes: Impact of Tax Extensification and Intensification on Individual Income Tax Receipts. Advances in Taxation Research, 1(2 SE-Articles). https://doi.org/10.60079/atr.v1i2.104
Pohan, C. A. (2018). Panduan Lengkap Pajak Internasional. Gramedia Pustaka Utama.
Rori, H. (2013). Analisis penerapan tax planning atas pajak penghasilan badan. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 1(3). https://doi.org/10.35794/emba.1.3.2013.1840
Sucipto, T. N. (2021). Pengaruh perencanaan pajak dan beban pajak terhadap ekuitas pada perusahaan keuangan sub sektor perbankan yang terdaftar di bursa efek indonesia periode 2017-2019. Jurnal Ilmiah Abdi Ilmu, 14(2), 204–216. https://journal.pancabudi.ac.id/index.php/abdiilmu/article/view/4060
Susanto, E. E., & Cahyati, S. N. (2024). PENGARUH PROFITABILITAS, LEVERAGE, UKURAN PERUSAHAAN DAN KEPEMILIKAN INSTITUSIONAL TERHADAP PENGHINDARAN PAJAK. Juremi: Jurnal Riset Ekonomi, 3(6 SE-Articles), 843–858. https://bajangjournal.com/index.php/Juremi/article/view/7644
Taylor, G., Richardson, G., & Lanis, R. (2015). Multinationality, tax havens, intangible assets, and transfer pricing aggressiveness: An empirical analysis. Journal of International Accounting Research, 14(1), 25–57. https://doi.org/10.2308/jiar-51019
Wedha, M. A. S., & Sastri, M. (2017). Pengaruh Tax Planning Terhadap Return on Equity. Jurnal KRISNA: Kumpulan Riset Akuntansi, 9(1), 30–35. https://doi.org/10.22225/kr.9.1.2017.30-35
Published
Issue
Section
Categories
License
Copyright (c) 2025 Riyans Ardiansyah, Roni Padliansyah, Rudy Bin Ansar, Lim Ming Fook (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the full copyright of their published articles. By submitting and publishing their work, authors grant Vifada Management and Social Sciences the right of first publication. All published articles are simultaneously licensed under the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided that the original author(s) and the initial publication in this journal are properly acknowledged.
