Moderating Role of ESG Disclosure on Minority Shareholders and Tax Avoidance

Rika Nur Widiastutik, Syaiful Iqbal, Mohamad Khoiru Rusydi

Abstract


Objective - This study examined and analyzed the effect of minority shareholders on tax avoidance, which covers Environmental, Social, and Governance (ESG) disclosure as a moderating variable in manufacturing companies listed on the IDX for the 2018–2022. The minority shareholders consist of foreign ownership, institutional ownership, and managerial ownership.

Design/Methodology - This study used secondary data taken from annual reports, sustainability reports, and the company’s OSIRIS database. Moreover, a total of 254 research sample companies were selected for this study using a purposive sampling technique. In addition, this study used a quantitative method using panel data regression analysis.

Results - This study discovered that the higher the foreign and managerial ownership, the lower the tax avoidance actions within the company, while institutional ownership has no effect on tax avoidance. Furthermore, the results of the moderation regression analysis showed ESG disclosures can strengthen the effect of foreign and managerial ownership on tax avoidance, but cannot moderate institutional ownership on tax avoidance.

Research limitations/implications - As a solution to tax avoidance in Indonesia, OJK may take into account and strengthen ESG disclosures made by companies.

Novelty/Originality - This study discussed tax avoidance actions in Indonesia based on company ownership, with a focus on minority shareholders. Additionally, ESG disclosure was investigated to determine whether it could affect the relationship between minority shareholders and tax avoidance.

Keywords


esg disclosure; foreign ownership; institutional ownership; managerial ownership; tax avoidance

Full Text:

PDF

References


Angela, T., & Sari, N. (2023). The Effect of Environmental, Social, and Governance Disclosure on Firm Value. E3S Web of Conferences, 426, 1078.

Aningtyas, P. H. (2018). Analisis Pengungkapan Good Corporate Governance Dan Corporate Social Responsibility Berdasarkan Pedoman Umum Gcg Dan Standar Gri G4.

Arianandini, P. W., & Ramantha, I. W. (2018). Pengaruh profitabilitas, leverage, dan kepemilikan institusional pada tax avoidance. E-Jurnal Akuntansi Universitas Udayana, 22(3), 2088–2116.

Aronmwan, E. J., & Okaiwele, I. M. (2020). Measuring tax avoidance using effective tax rate: concepts and implications. The Journal of Accounting and Management, 10(1).

Ashari, M. A., Simorangkir, P., & Masripah, M. (2020). Pengaruh pertumbuhan penjualan, kepemilikan institusional dan kepemilikan manajerial terhadap penghindaran pajak (tax avoidance). Jurnal Syntax Transformation, 1(8), 488–498.

Athira, A., & Lukose, P. J. J. (2023). Do common institutional owners’ activisms deter tax avoidance? Evidence from an emerging economy. Pacific-Basin Finance Journal, 80, 102090.

Benkraiem, R., Gaaya, S., & Lakhal, F. (2024). Tax avoidance, investor protection, and investment inefficiency: An international evidence. Research in International Business and Finance, 69, 102258.

Bird, R., & Davis-Nozemack, K. (2018). Tax avoidance as a sustainability problem. Journal of Business Ethics, 151, 1009–1025.

Boubaker, S., Derouiche, I., & Nguyen, H. (2022). Voluntary disclosure, tax avoidance and family firms. Journal of Management and Governance, 26(1), 129–158.

Charisma, R. B., & Dwimulyani, S. (2019). Pengaruh struktur kepemilikan terhadap tindakan penghindaran pajak dengan kualitas audit sebagai variabel moderating. Prosiding Seminar Nasional Pakar, 2–32.

De Vito, A. (2024). Minority shareholders and tax avoidance. Journal of Accounting and Public Policy, 44, 107179.

Dewi, L. S., & Abundanti, N. (2019). Pengaruh profitabilitas, likuiditas, kepemilikan institusional dan kepemilikan manajerial terhadap nilai perusahaan. Udayana University.

Drake, K. D., Hamilton, R., & Lusch, S. J. (2020). Are declining effective tax rates indicative of tax avoidance? Insight from effective tax rate reconciliations. Journal of Accounting and Economics, 70(1), 101317.

Erlin, L. O., Sutarjo, A., & Silvera, D. L. (2023). Pengaruh Ukuran Perusahaan, Kepemilikan Institusional dan Beban Pajak Tangguhan Terhadap Tax Avoidance. Ekasakti Pareso Jurnal Akuntansi, 1(2), 112–121.

Fadillah, A. N., Dewi, S., & Karjantoro, H. (2023). Pengaruh Struktur Kepemilikan Terhadap Praktik Penghindaran Pajak pada Perusahaan di BEI. Jambura Accounting Review, 4(1), 41–55.

Faradiza, S. A. (2019). Dampak strategi bisnis terhadap penghindaran pajak. Journal of Applied Accounting and Taxation, 4(1), 107–116.

Fortuna, N. D., & Herawaty, V. (2022). Pengaruh Corporate Social Responsibility, Kepemilikan Keluarga Dan Kepemilikan Institusional Terhadap Tax Avoidance Dengan Strategi Bisnis Sebagai Variabel Moderasi. Jurnal Ekonomi Trisakti, 2(2), 1483–1494.

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.

Gaaya, S., Lakhal, N., & Lakhal, F. (2017). Does family ownership reduce corporate tax avoidance? The moderating effect of audit quality. Managerial Auditing Journal, 32(7), 731–744.

Hasan, I., Kim, I., Teng, H., & Wu, Q. (2022). The effect of foreign institutional ownership on corporate tax avoidance: International evidence. Journal of International Accounting, Auditing and Taxation, 46, 100440.

Herman, L. A., Rissi, D. M., & Ramadhea JR, S. (2023). Persepsi Kepatuhan Perpajakan yang Dipengaruhi oleh Keadilan Prosedural, Keadilan Distributif, dan Keadilan Retributif. Jurnal Akuntansi Kompetif, 6(1), 151–162.

Hidayat, K., & Zuhroh, D. (2023). The impact of environmental, social and governance, sustainable financial performance, ownership structure, and composition of company directors on tax avoidance: evidence from Indonesia. International Journal of Energy Economics and Policy, 13(6), 311–320.

Iqbal, S., & Sholihin, M. (2019). The role of cognitive moral development in tax compliance decision making: An analysis of the synergistic and antagonistic tax climates. International Journal of Ethics and Systems, 35(2), 227–241.

Jankensgård, H. (2018). Between a rock and a hard place: New evidence on the relationship between ownership and voluntary disclosure. International Review of Financial Analysis, 56, 281–291.

Jeanice, J., & Kim, S. S. (2023). Pengaruh Penerapan ESG Terhadap Nilai Perusahaan di Indonesia. Owner: Riset Dan Jurnal Akuntansi, 7(2), 1646–1653.

Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate governance (pp. 77–132). Gower.

Jiang, W., Luo, D., Wang, L., & Zheng Zhou, K. (2024). Foreign ownership and bribery in Chinese listed firms: An institutional perspective. Journal of Business Research, 174, 114530.

Jiang, Y., Zheng, H., & Wang, R. (2021). The effect of institutional ownership on listed companies’ tax avoidance strategies. Applied Economics, 53(8), 880–896.

Juniati, J., & Abadi, K. (2017). Content analysis method: A proposed scoring for quantitative and qualitative disclosures. In Handbook of research methods in corporate social responsibility (pp. 349–363). Edward Elgar Publishing.

Khan, M., Srinivasan, S., & Tan, L. (2017). Institutional ownership and corporate tax avoidance: New evidence. The Accounting Review, 92(2), 101–122.

Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225.

Kovermann, J., & Velte, P. (2019). The impact of corporate governance on corporate tax avoidance—A literature review. Journal of International Accounting, Auditing and Taxation, 36, 100270.

Kurniawan, R., & Putri, N. E. (2023). Pengaruh Intellectual Capital, Leverage, Managerial Ownership, Dan Institutional Ownership Terhadap Nilai Perusahaan (Studi Pada Top 100 World’s Best Airlines Versi Skytrax. Com Periode Tahun 2016-2020). JAAKFE UNTAN (Jurnal Audit Dan Akuntansi Fakultas Ekonomi Universitas Tanjungpura), 12(3), 278–299.

Kusufiyah, Y. V., & Anggraini, D. (2022). Trend Penghindaran Pajak pada Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia. Jurnal Ekonomi Dan Bisnis Dharma Andalas, 24(1), 217–226.

Lee, C.-H., & Bose, S. (2021). Do family firms engage in less tax avoidance than non-family firms? The corporate opacity perspective. Journal of Contemporary Accounting & Economics, 17(2), 100263.

Lestari, A. D. (2023). Pengaruh Leverage, Ukuran Perusahaan, Kepemilikan Institusional, Terhadap Tax Avoidance Pada Perusahaan Makanan Dan Minuman (Sektor Konsumen Primer) Yang Terdaftar Di BEI Tahun 2019-2021. Jurnal Ekonomi Trisakti, 3(1), 171–184.

Lestari, N. P., & Juliarto, A. (2017). Pengaruh dimensi struktur kepemilikan terhadap kinerja perusahaan manufaktur. Diponegoro Journal of Accounting, 6(3), 742–751.

Long, W., Wu, H., Li, L., Ying, S. X., & Li, S. (2024). Mixed-ownership structure, non-state-blockholder coalition, and tax avoidance. International Review of Financial Analysis, 91, 102988.

Minh Ha, N., Phuong Trang, T. T., & Vuong, P. M. (2022). Relationship between tax avoidance and institutional ownership over business cost of debt. Cogent Economics & Finance, 10(1), 2026005.

Moeljono, M. (2023). Keputusan Keuangan Memoderasi Pengaruh Struktur Kepemilikan Institusional terhadap Praktik Penghindaran Pajak. Jurnal Ekonomi Dan Bisnis, 24(1), 1–13.

Nainggolan, C., & Sari, D. (2020). Kepentingan asing, aktivitas internasional, dan thin capitalization: Pengaruh terhadap agresivitas pajak di Indonesia. Jurnal Akuntansi Dan Bisnis, 19(2), 147.

Nurmawan, M., & Nuritomo, N. (2022). Pengaruh struktur kepemilikan terhadap penghindaran pajak. Proceeding of National Conference on Accounting & Finance, 5–11.

Pokhariyal, G. P. (2019). Importance of moderating and intervening variables on the relationship between independent and dependent variables. International Journal of Statistics and Applied Mathematics, 4(5), 1–4.

Pratomo, D., & Rana, R. A. (2021). Pengaruh kepemilikan institusional, komisaris independen dan komite audit terhadap penghindaran pajak. JAK (Jurnal Akuntansi) Kajian Ilmiah Akuntansi, 8(1), 91–103.

Purnomo, L. J. (2021). Ukuran perusahaan, umur perusahaan, pertumbuhan penjualan, kepemilikan manajerial dan penghindaran pajak. Jurnal Akuntansi Dan Bisnis, 21, 102–115.

Putri, A. A., & Lawita, N. F. (2019). Pengaruh kepemilikan institusional dan kepemilikan manajerial terhadap penghindaran pajak. Jurnal Akuntansi Dan Ekonomika, 9(1), 68–75.

Putri, D. B. K., & Damayanti, T. W. (2021). Penghindaran Pajak: Efek Struktur Kepemilikan Asing dan Preferensi Risiko CEO & CFO. Akuntansi Bisnis & Manajemen (ABM), 28(1), 11–24.

Putri, N., & Mulyani, S. D. (2020). Pengaruh Transfer Pricing Dan Kepemilikan Asing Terhadap Praktik Penghindaran Pajak (Tax Avoidance) Dengan Pengungkapan Corporate Social Responsibility (CSR) Sebagai Variabel Moderasi. Prosiding Seminar Nasional Pakar, 2–4.

Putri, S. D. N., & Aryati, T. (2023). Pengaruh Kepemilikan Institusional, Intensitas Modal Dan Karakter Eksekutif Terhadap Penghindaran Pajak Dengan Koneksi Politik Sebagai Moderasi Pada Perusahaan Manufaktur. Jurnal Ekonomi Trisakti, 3(1), 1573–1582.

Riberu, G. F. E. T. (2021). Pengaruh Proporsi Kepemilikan Saham Asing dan Proporsi Direktur dan Komisaris Asing terhadap Penghindaran Pajak di Perusahaan Manufaktur Sektor Industri Barang Konsumsi Sub Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia. Jurnal Manajemen Bisnis Dan Kewirausahaan, 5(4), 348–353.

Romario, R., & Rahmanto, B. T. (2023). Dampak Relativism, Idealism, dan Cinta Uang terhadap Persepsi Etis Penghindaran Pajak. Jurnal Proaksi, 10(2), 275–289.

Sarhan, A. A., Elmagrhi, M. H., & Elkhashen, E. M. (2024). Corruption prevention practices and tax avoidance: The moderating effect of corporate board characteristics. Journal of International Accounting, Auditing and Taxation, 100615.

Sintyawati, N. L. A., & Dewi, M. R. (2018). Pengaruh kepemilikan manajerial, kepemilikan institusional dan leverage terhadap biaya keagenan pada perusahaan manufaktur. E-Jurnal Manajemen Universitas Udayana, 7(2), 933.

Solomon, D. (2016). The Voice: The Minority Shareholder’s Perspective. Nev. LJ, 17, 739.

Sridana, I. K., Budiartha, I. N. P., & Seputra, I. P. G. (2020). Perlindungan Hukum Terhadap Pemegang Saham Minoritas Pada Perseroan Terbatas Yang Melakukan Merger. Jurnal Analogi Hukum, 2(1), 59–62.

Susyanti, J., & Anwar, S. A. (2020). Efek Sikap Wajib Pajak, Kesadaran Wajib Pajak, Pengetahuan Perpajakan Terhadap Kepatuhan Pajak Di Masa Covid 19. Sebatik, 24(2), 171–177.

Tandean, V., & Carolina, M. (2022). Pengaruh Karakteristik Audit Terhadap Penghindaran Pajak. Jurnal Budget: Isu Dan Masalah Keuangan Negara, 7(2).

Tarmizi, A., & Perkasa, D. H. (2022). Pengaruh kepemilikan institusional, kepemilikan keluarga, dan thin capitalization terhadap penghindaran pajak. Jurnal Perspektif Manajerial Dan Kewirausahaan (JPMK), 3(1), 47–61.

Tee, C. M., Teoh, T.-T. M., & Hooy, C. W. (2022). Political Connection Types and Corporate Tax Avoidance: Evidence from Malaysia. Malaysian Journal of Economic Studies, 59(2), 199–220.

Widyoningrum, R. R., & Muryanto, Y. T. (2017). Perlindungan hukum pemegang saham minoritas terhadap implikasi praktik insider trading dalam perdagangan saham di pasar modal. Jurnal Privat Law, 5(2), 102–108.

Wijaya, S., & Rahayu, F. D. (2021). Pengaruh Agresivitas Transfer Pricing, Penggunaan Negara Lindung Pajak, Dan Kepemilikan Institusional Terhadap Penghindaran Pajak. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 16(2), 245–264.

Yoon, B. H., Lee, J. H., & Cho, J. H. (2021). The effect of esg performance on tax avoidance—evidence from korea. Sustainability (Switzerland), 13(12), 1–16.




DOI: https://doi.org/10.24815/jaroe.v7i2.37155

Article Metrics

Abstract view : 0 times
PDF - 0 times

Refbacks

  • There are currently no refbacks.


Published by:

Accounting Department
Economics and Business Faculty
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
E-ISSN: 2621-1041

 

Creative Commons License
Journal of Accounting Research, Organization and Economics by Accounting Department of Economics and Business Faculty of Syiah Kuala University is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.unsyiah.ac.id/JAROE/index.