Tax Aggresiveness and Corporate Social Responsibility: Testing Legitimacy Theory in Manufacturing Firms

Khairunnisa, Dwi Martani

Research output: Contribution to conferencePaperpeer-review

Abstract

The purpose of present study is to test whether legitimacy has relations between corporate social responsibility and tax aggressiveness, and also examines firm risk could moderate the relation between corporate social responsibility and tax aggressiveness. Empirical investigation is conducted on manufacturing firms listed in Indonesia Stock Exchange (IDX) from 2013 to 2015. Empirical results do not support positive relationship among important constructs. The result shows that tax aggressiveness does not impact CSR activities reporting due to having total BTD as tax aggressiveness proxy. It might happen since Indonesia listed companies do not coordinate CSR department and taxation department to working together in executing companies strategy. Government regulation in Indonesia seems not very clear to guide companies in disclosing CSR activities reporting to the entity, so companies solely strict to their own achivement. This research also finds incremental number of CSR reporting from 2013 to 2015, which means there is an awareness improvement of the benefit of legitimacy.
Original languageEnglish
Publication statusPublished - 2017
Event2nd International Conference on Accounting, Management, Economics and Social Sciences - ID, Bandung, Indonesia
Duration: 1 Jan 2017 → …

Conference

Conference2nd International Conference on Accounting, Management, Economics and Social Sciences
CountryIndonesia
CityBandung
Period1/01/17 → …

Keywords

  • Tax aggressiveness, Firm risk, Corporate social responsibility, Legitimacy.

Fingerprint Dive into the research topics of 'Tax Aggresiveness and Corporate Social Responsibility: Testing Legitimacy Theory in Manufacturing Firms'. Together they form a unique fingerprint.

Cite this