Environmental responsibility performance, corporate social responsibility disclosure, tax aggressiveness: Does corporate governance have a role?

Abstract

The self-assessment system tends to provide a loophole for companies to reduce tax payment. The great benefit of the tax to the community links tax with social responsibility. This study aims to investigate the effect of environmental responsibility performance and social responsibility disclosure on tax aggressiveness as well as the role of corporate governance in moderating these effects. The analysis in this study was conducted on 34 non-financial companies listed on the Indonesia Stock Exchange and were participants of 2014-2018 PROPER selected using purposive sampling so that 170 observations were obtained. This study employs two-panel data regression models, namely models with and without corporate governance, as a moderating variable. The result suggests that environmental responsibility performance and social responsibility disclosure are negatively associated with tax aggressiveness. However, corporate governance fails to strengthen these negative influences

Cost Of Capital, Corporate Tax Plannings, And Corporate Social Responsibility Disclosure

“…Based on stakeholder theory, tax avoidance is not an ethical activity because taxes are a form of corporate responsibility as citizens who enjoy public facilities provided by the government through funds derived from taxes (Firmansyah and Estutik, 2020). Thus, we need a mechanism that aligns the interests of the company and the demands of investors so that the company behaves ethically.…”

“…Therefore, a positive impression is more likely to emerge from companies that disclose their social responsibility than those that do not. (Firmansyah and Estutik, 2020) found that corporate social responsibility disclosure is negatively associated with tax aggressiveness.…”

“…Furthermore, companies involved in aggressive tax policies are considered socially irresponsible (Firmansyah and Estutik, 2020). Corporate social responsibility provides a control mechanism so that companies comply with the principles of responsible behavior, thereby eliminating the opportunity for companies to hide aggressive tax avoidance (Whait et al, 2018).…”

“…Corporate social responsibility provides a control mechanism so that companies comply with the principles of responsible behavior, thereby eliminating the opportunity for companies to hide aggressive tax avoidance (Whait et al, 2018). Based on stakeholder theory, companies pay taxes fairly as corporate ethics to the government and other taxpayers (Firmansyah and Estutik, 2020). Companies that disclose their socially responsible activities will reduce their tax avoidance activities, including aggressive tax avoidance, to maintain an ethical view of the company in the eyes of all parties affected by company policies.…”

Hubungan Pengungkapan Keberlanjutan Dan Nilai Perusahaan : Kasus Perusahaan Sub Sektor Perbankan Di Indonesia

“…Variabel independen yang digunakan dalam penelitian ini adalah tingkat pengungkapan keberlanjutan dengan menggunakan proksi indeks GRI 2018. Penggunaan proksi ini menyesuaikan dari proksi sebelumnya yang dilakukan oleh , Firmansyah & Estutik (2020), Firmansyah & Irwanto (2020), dan Widyansyah et al (2021), dengan melakukan penyesuaian ke dalam GRI 2018 dan kualitas pengungkapan. GRI 2018 membagi kriteria keberlanjutan menjadi 3 poin utama.…”