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 64
- Downloads 0
Analysis of Factors Affecting Labor Productivity in Perum Bulog in West Nusa Tenggara Province
This study aims to analyze the factors that affect labor productivity in Perum Bulog in West Nusa Tenggara Province. The variables studied include work experience, wages, and age. The research method used is multiple lin...
The Effect of Job Satisfaction, Motivation, and Work Discipline on Employee Performance at the Environmental Laboratory UPT of the East Java Provincial Environmental Service
This study aims to analyse the effect of job satisfaction, motivation, and work discipline on the performance of UPT Laboratorium employees of the East Java Provincial Environmental Service. The method used is descriptiv...
Analysis of the Influence of Motivation and Work Environment on Employee Performance and Job Satisfaction as Intervening Variables
Performance is the result of work achieved by employees in carrying out their duties in accordance with the responsibilities assigned to employees. The Bank uses various strategies, such as incentives and fostering a pos...
Entrepreneurship Creative Projects as an Effort to Improve interest in Entrepreneurship Students
Entrepreneurship can be a solution in reducing poverty in Indonesia, especially if it is carried out in accordance with the principles of entrepreneurship. The latest models, forms and styles (trends) of entrepreneurship...
The Dynamics of SMEs Growth and Electronic Marketing Potential in Developing Economies: Evidence from the manufacturing firms in Tanzania
This study, investigated the impact of e-marketing practices on the performance of manufacturing Small and Medium Enterprises in Dar es Salaam, Tanzania. Through quantitative method, the survey research design was employ...