Abstract
This study was administered to analyze and obtain empirical evidence regarding Corporate Social Responsibility (CSR) disclosure on tax aggressiveness and the impact of corporate CSR disclosure and tax aggressiveness on investor reactions. The population of this study were manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2016-2018. Samples were 147 companies selected using purposive sampling technique. Path analysis was performed to analyze the data of this study. The results of this study showed that CSR disclosure negatively affected the tax aggressiveness and CSR affected investor reactions. Further, tax aggressiveness did not affect investor reactions. In addition, CSR disclosure and tax aggressiveness did not share simultaneous influence on investor reactions. Keywords: CSR Disclosure, tax aggressiveness, Investor Reaction, Profitability, Company Size and Leverage DOI: 10.7176/RJFA/11-22-10 Publication date: November 30 th 2020
Highlights
1.1 Background Corporate social responsibility refers to companies’ commitment in improving their business ethics by carrying out their operational activities legally, contributing for employees’ quality of live and improving the economic condition of broader communities
The residual coefficient PYε1 = √ (1 - 0.038) = 0.96. These results indicate that corporate social responsibility has a negative influence on tax aggressiveness
The R square that reflects the influence of Corporate Social Responsibility (CSR) disclosure on tax aggressiveness is 3.8%, indicating that corporate social responsibility disclosure affects the level of tax aggressiveness
Summary
1.1 Background Corporate social responsibility refers to companies’ commitment in improving their business ethics by carrying out their operational activities legally, contributing for employees’ quality of live and improving the economic condition of broader communities. CSR reflects companies’ concerns on stakeholders (employees, customers, society and government) within their operational areas. CSR is beyond voluntary activities as it is a form of companies’ commitment in carrying out company operational activities, especially those that run their enterprises using natural resources. CSR is regulated in the "Law Number 40 of 2007. Article 74 concerning the Limited Liability Company Law". Concerns on environmental issues in relation to companies’ operational activities are rising.
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