Related-Party Transactions, Advertising Expenses, and Capital Intensity on Tax Aggressiveness: Executive Compensation Moderation in Indonesian Consumer Non-Cyclicals Sector

Nurul Isnaeni Asyarah Usman (Universitas Islam Negeri Alauddin Makassar)
Jamaluddin Majid (Universitas Islam Negeri Alauddin Makassar)
Namla Elfa Syariati (Universitas Islam Negeri Alauddin Makassar)

Journal of Applied Taxation and Policy
Volume 2, Issue 2 (November) 2026

In addition to determining the moderating effect of executive compensation in these connections, this study aims to evaluate whether Related-Party Transactions, Advertising Expenses, and Capital Intensity affect Tax Aggressiveness. This study uses data from ten companies in the consumer non-cyclicals sector that were listed on the Indonesia Stock Exchange between 2020 and 2024 using a quantitative associative research design. The resulting dataset consists of 50 observations and is examined using SmartPLS 3. The empirical findings show that Capital Intensity and Related-Party Transactions have no statistically significant impact on Tax Aggressiveness.  Advertising Expenses, however, are negatively and significantly associated with Tax Aggressiveness. While the negative correlation between advertising expenses and tax aggressiveness is lessened, the association between related-party transactions and tax aggressiveness is further strengthened by executive compensation. The results show that the relationship between Capital Intensity and Tax Aggressiveness is not much moderated by Executive Compensation. Accordingly, Related-Party Transactions and Capital Intensity should not be interpreted independently as measures of Tax Aggressiveness, whereas Advertising Expenses and Executive Compensation, by contrast, provide additional signals for assessing tax-related risk.