The Impact of Earnings Management, Tax Avoidance, and Leverage on Firm Financial Performance: The Moderating Role of Good Corporate Governance

Aims: To test and analyses  the effect of Earning Management, Tax Avoidance and Leverage on Financial Performance: The moderating role of by Good Corporate Governance. This research involves finance and accounting science. Study Design: The type of this research is an explanatory quantitative causality that relies on secondary data collection from the Indonesian Stock Exchange. Place and Duration of Study: Manufacturing Companies listed on the Indonesia Stock Exchange from 2015 to 2019.  Methodology: The research uses purposive sampling method and found 52 companies that meet the required criteria during the observation period, 260 observed data. The data analysis using multiple regression models assisted by E-Views version 12.0 program. Results: It shows that Earning Management, Tax Avoidance and Leverage have no significant effect on Firm’s Financial Performance, while GCG only moderates the effect of Leverage on Firm’s Financial Performance, and not for Earning Management and Tax Avoidance. The implication of the research is that companies suggested to consider Good Corporate Governance moderating role on the impact of Leverage to Financial Performance and future research recommended to re-examine the effect of Earning Management, Tax Avoidance and Leverage to Financial Performance and the role of GCG in moderating the effect of Earning Management and Tax Avoidance on Financial Performance.