Corporate Social Responsibility and Tax Avoidance: Do Socially Responsible Firms in Indonesia Pay More Taxes
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 11
Abstract
The practice of tax avoidance in companies has increased since 2000, and has harmed the country's economic development. Tax avoidance is as vital as environmental issues, in this case it is interpreted as a form of Corporate Social Responsibility (CSR) report. This research tries to analyze environmental, social, and governance performance that influences tax avoidance activities in companies, with a sample of 86 companies listed on the Indonesia Stock Exchange in the past 10-year period, namely 2013-2022. The research method used is quantitative, using data obtained from financial reports, annual reports, and other quantitative data through the Refinitiv Eikon database. The data analysis technique used is panel regression using the Eviews 9.0 application. The research results show that the level of CSR reporting based on ESG performance has a negative effect on tax avoidance practices. A low level of CSR reporting actually indicates high tax avoidance, meaning that CSR disclosure or reporting is only a formality for compliance with policy, but the level of tax avoidance is actually quite high. This is a form of action from the company to maximize the gaps that exist in tax laws and regulations in Indonesia. This research also shows that CSR disclosure is reflected in ESG performance, so it is necessary to expand other variables over a certain time span. Further research can also be carried out using other methods, with the hope that the research results can make a positive contribution to both stakeholders and the company.
Authors and Affiliations
Ria Zulkha Ermayda, Fitri Purnamasari, DWI Narullia
Keywords
Related Articles
- EP ID EP729619
- DOI 10.47191/jefms/v6-i11-53
- Views 43
- Downloads 0
What Drives Online Gaming Addiction? Loyalty Check and In-App Purchase Intention
Mobile gaming is known as a high and competitive growing industry of business. There have been lots of game released every day in the last two years. This study examines the relationship between online game addiction (wi...
Correlation of Islamic Financing and Economic Growth through A Panel Data Approach
One of the strengthening of the financial sector is through financing, therefore what factors are needed that can encourage financing growth. This study aims to analyze economic growth, assets and Non-Performing Financin...
Rice Marketing Strategy in Increasing Sales to Rice Factory Group (Poktan) Parung Kembang, Jasinga District, Bogor District
This study aims to determine what marketing strategies are approprite to be applied in increasing sales at the Poktan Parung Kembang rice factory. In this study, the type of research used is descriptive qualitative based...
MSMEs Resilience: The Role of Religiosity, Culture, Use of Technology and Management Characteristics
The aim of this study is to test the influence of religiosity, culture, the use of technology, management characteristics mediated by the resilience of entrepreneurs to increase MSME resilience. This research is a type o...
Employee Retention through Organizational Commitment, Work Engagement, and Job Satisfaction
Commitment can increase organizational ownership, performance, and retention with the ultimate goal of minimizing employees' desire to leave the organization because high turnover costs result in costs that are never con...