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

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

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.

Keywords: Tax Aggressiveness, Environmental Responsibility Performance, Corporate Social Responsibility Disclosure, Corporate Governance

Authors’ individual contribution: Conceptualization – A.F. and R.S.E.; Methodology – A.F. and R.S.E.; Formal Analysis – R.S.E.; Investigation – A.F. and R.S.E.; Writing – Original Draft – R.S.E.; Writing – Review & Editing – A.F.; Supervision – A.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, G31, G32, G38, H26

Received: 01.05.2020
Accepted: 19.10.2020
Published online: 23.10.2020

How to cite this paper: Firmansyah, A., & Estutik, R. S. (2020). Environmental responsibility performance, corporate social responsibility disclosure, tax aggressiveness: Does corporate governance have a role? Journal of Governance & Regulation, 9(4), 8-24. https://doi.org/10.22495/jgrv9i4art1