The Effect of CEO Narcissism and Firm Size on Tax Avoidance: The Moderating Role of Profitability
DOI:
https://doi.org/10.29407/6cefkf61Keywords:
CEO narcissism, , firm size,, tax avoidance, , profitability, , Upper Echelons Theory,, moderated regression.Abstract
Abstract. Tax avoidance is an issue involving the interests of companies in maintaining profits and the interests of the state in maintaining tax revenues. This study aims to analyze the effect of CEO narcissism and firm size on tax avoidance and to examine the role of profitability as a moderating variable. The study employs a quantitative approach using secondary data from manufacturing companies listed on the Indonesia Stock Exchange during 2020–2024. Based on the research draft, the sample consists of 36 companies with 180 observations. CEO narcissism is proxied by the prominence of the CEO’s photograph in annual reports, firm size is measured using the natural logarithm of total assets, profitability is measured by after-tax income relative to total assets, while tax avoidance is calculated as one minus the effective tax rate. The results reported in the draft indicate that CEO narcissism has a positive and significant effect on tax avoidance, firm size has a negative and significant effect, profitability has a positive and significant effect, and profitability strengthens the effect of CEO narcissism while weakening the negative effect of firm size on tax avoidance. The research model has an R-squared value of 0.447.
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Copyright (c) 2026 Salman Al Farisi Salman, Triadi Agung Sudarto, Rizky Firmansyah (Author)
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