Pengaruh Corporate Social Responsibility Terhadap Tax Avoidance

Fandi Achmad Hidayat; Santi Novita

doi:10.33395/owner.v7i3.1521

Authors

Fandi Achmad Hidayat FEB - Universitas Airlangga
Santi Novita
✉ Corresponding author: santi.novita@feb.unair.ac.id FEB-Universitas Airlangga

DOI:

https://doi.org/10.33395/owner.v7i3.1521

Keywords:

CETR; CSR; GRI index; industry; tax avoidance

Abstract

This study aims to obtain empirical evidence about the effect of corporate social responsibility on tax avoidance. This study uses 114 observations or unbalanced panel data of non-financial industries listed on the Indonesia Stock Exchange for the years 2015-2019. The dependent variable in this study is tax avoidance which is measured using cash effective tax rate. The independent variable in this study is a corporate social responsibility as measured by the CSR index based on the GRI standard. This study also uses control variables consisting of company size, leverage, and return on assets. In addition, the analysis enriches with a comparison of tax avoidance among industries. Using Multiple Linear Regression and software STATA 14, the study's results indicate that corporate social responsibility has a positive effect on tax avoidance. This result support risk management theory. This research provides a sign not only for the government but also for investors to pay attention to tax avoidance practices primarily for the firms with a high rate of CSR activities.

Downloads

Download data is not yet available.

References

Abdelfattah, T., & Aboud, A. (2020). Tax avoidance, corporate governance, and corporate social responsibility: The case of the Egyptian capital market. Journal of International Accounting, Auditing and Taxation, 38, 100304.

Abid, S., & Dammak, S. (2022). Corporate social responsibility and tax avoidance: the case of French companies. Journal of Financial Reporting and Accounting, 20(3/4), 618-638. doi:https://doi.org/10.1108/JFRA-04-2020-0119

Annisa, A., Taufik, T., & Hanif, R. A. (2017). Pengaruh return on asset, leverage, ukuran perusahaan dan koneksi politik terhadap penghindaran pajak (studi empiris pada perusahaan manufaktur yang terdaftar di BEI periode tahun 2012-2015). Riau University,

Chen, S., Chen, X., Cheng, Q., & Shevlin, T. (2010). Are family firms more tax aggressive than non-family firms? Journal of Financial Economics, 95(1), 41-61. doi:https://doi.org/10.1016/j.jfineco.2009.02.003

Cheng, C. A., Huang, H. H., Li, Y., & Stanfield, J. (2012). The effect of hedge fund activism on corporate tax avoidance. The accounting review, 87(5), 1493-1526. doi:https://doi.org/10.2308/accr-50195

Chouaibi, J., Rossi, M., & Abdessamed, N. (2022). The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context. Competitiveness Review: An International Business Journal, 32(3), 326-349. doi:https://doi.org/10.1108/CR-04-2021-0062

Col, B., & Patel, S. (2019). Going to haven? Corporate social responsibility and tax avoidance. Journal of Business Ethics, 154(4), 1033-1050.

Davis, A. K., Guenther, D. A., Krull, L. K., & Williams, B. M. (2016). Do socially responsible firms pay more taxes? The accounting review, 91(1), 47-68.

Dewanti, I. G. A. D. C., & Sujana, I. K. (2019). Pengaruh ukuran perusahaan, corporate social responsibility, profitabilitas dan leverage pada tax avoidance. E-Jurnal Akuntansi, 28(1), 377-406.

Dewi, N. L. P. P., & Noviari, N. (2017). Pengaruh ukuran perusahaan, leverage, profitabilitas dan corporate social responsibility terhadap penghindaran pajak (tax avoidance). E-Jurnal Akuntansi, 21(2), 882-911.

Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2010). The effects of executives on corporate tax avoidance. The accounting review, 85(4), 1163-1189. doi:10.2308/accr.2010.85.4.1163

Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of management review, 30(4), 777-798. doi:https://doi.org/10.5465/amr.2005.18378878

Goerke, L. (2019). Corporate social responsibility and tax avoidance. Journal of Public Economic Theory, 21(2), 310-331.

Gulzar, M., Cherian, J., Sial, M. S., Badulescu, A., Thu, P. A., Badulescu, D., & Khuong, N. V. (2018). Does corporate social responsibility influence corporate tax avoidance of Chinese listed companies? Sustainability, 10(12), 4549.

Ioannou, I., & Serafeim, G. (2017). The consequences of mandatory corporate sustainability reporting. Harvard Business School research working paper(11-100).

Januari, D. M. D., & Suardikha, I. M. S. (2019). Pengaruh corporate social responsibility, sales growth, dan profitabilitas terhadap tax avoidance. E-Jurnal Akuntansi, 27(3), 1653-1677.

Kim, J., & Im, C. (2017). Study on corporate social responsibility (CSR): Focus on tax avoidance and financial ratio analysis. Sustainability, 9(10), 1710.

Kreps, D. M. (1990). Corporate culture and economic theory. Perspectives on positive political economy, 90(109-110), 8.

Kurniawan, M. A., Lasmana, M. S., & Novita, S. (2020). Corporate Social Responsibility Disclosure: Tax Agresiveness Indication? Jurnal Reviu Akuntansi dan Keuangan, 10(2), 359-370.

Landry, S., Deslandes, M., & Fortin, A. (2013). Tax aggressiveness, corporate social responsibility, and ownership structure. Journal of Accounting, Ethics & Public Policy, 14(3), 611-645.

Lanis, R., & Richardson, G. (2015). Is corporate social responsibility performance associated with tax avoidance? Journal of Business Ethics, 127(2), 439-457.

Liang, Q., Li, Q., Lu, M., & Shan, Y. (2021). Industry and geographic peer effects on corporate tax avoidance: Evidence from China. Pacific-Basin Finance Journal, 67, 101545. doi:https://doi.org/10.1016/j.pacfin.2021.101545

Lin, K. Z., Cheng, S., & Zhang, F. (2017). Corporate social responsibility, institutional environments, and tax avoidance: evidence from a subnational comparison in China. The International Journal of Accounting, 52(4), 303-318.

Lin, K. Z., Mills, L. F., Zhang, F., & Li, Y. (2018). Do political connections weaken tax enforcement effectiveness? Contemporary Accounting Research, 35(4), 1941-1972. doi:https://doi.org/10.1111/1911-3846.12360

Lin, X., Ho, C. M., & Shen, G. Q. (2018). Research on corporate social responsibility in the construction context: a critical review and future directions. International Journal of Construction Management, 18(5), 394-404. doi:https://doi.org/10.1080/15623599.2017.1333398

LÃƒÂ³pez-GonzÃƒÂ¡lez, E., MartÃƒÂnez-Ferrero, J., & GarcÃƒÂa-Meca, E. (2019). Corporate social responsibility in family firms: A contingency approach. Journal of Cleaner Production, 211, 1044-1064.

Mao, C.-W. (2019). Effect of corporate social responsibility on corporate tax avoidance: evidence from a matching approach. Quality & Quantity, 53(1), 49-67.

Mohanadas, N. D., Abdullah Salim, A. S., & Pheng, L. K. (2020). CSR and tax aggressiveness of Malaysian listed companies: evidence from an emerging economy. Social Responsibility Journal, 16(5), 597-612. doi:10.1108/SRJ-01-2019-0021

Moore, J. A., Suh, S., & Werner, E. M. (2017). Dual entrenchment and tax management: Classified boards and family firms. Journal of Business Research, 79, 161-172. doi:https://doi.org/10.1016/j.jbusres.2017.06.007

Mouakhar, K., Kachouri, M., Riguen, R., & Jarboui, A. (2020). The effect of sustainability performance and CSR on corporate tax avoidance with board gender diversity as mediating variable. Recherches en Sciences de Gestion(3), 303-339.

Napitupulu, I. H., Situngkir, A., & Edelia, A. (2019). Triggers of tax avoidance practices in Indonesia. International Journal of Economics, Business and Management Research, 3(11).

Ortas, E., & Gallego-ÃƒÂlvarez, I. (2020). Bridging the gap between corporate social responsibility performance and tax aggressiveness: The moderating role of national culture. Accounting, Auditing & Accountability Journal.

Rahman, J. M., & Leqi, L. (2021). Corporate social responsibility (CSR): focus on tax avoidance and financial ratio analysis. Accountancy Business and the Public Interest.

Sikka, P. (2010). Smoke and mirrors: Corporate social responsibility and tax avoidance. Paper presented at the Accounting forum.

Sikka, P. (2013). Smoke and mirrors: Corporate social responsibility and tax avoidanceÃ¢â‚¬â€A reply to Hasseldine and Morris. Paper presented at the Accounting Forum.

Susanto, A. (2022). Pengaruh corporate social responsibility (CSR) dan karakteristik perusahaan terhadap praktik penghindaran pajak perusahaan yang terdaftar di bursa efek indonesia. Owner: Riset dan Jurnal Akuntansi, 6(1), 541-553.

Watson, L. (2015). Corporate social responsibility, tax avoidance, and earnings performance. The Journal of the American Taxation Association, 37(2), 1-21.

Wiguna, I. P. P., & Jati, I. K. (2017). Pengaruh corporate social responsibility, preferensi risiko eksekutif, dan capital intensity pada penghindaran pajak. E-Jurnal Akuntansi, 21(1), 418-446.

Zeng, T. (2018). Relationship between corporate social responsibility and tax avoidance: international evidence. Social Responsibility Journal.

Zeng, T. (2019). Relationship between corporate social responsibility and tax avoidance: international evidence. Social Responsibility Journal.