TY - JOUR
T1 - The effect of corporate social responsibility on tax avoidance and earnings management
T2 - The moderating role of political connections
AU - Pratiwi, Indriati Siti
AU - Siregar, Sylvia Veronica
N1 - Publisher Copyright:
© 2019 Premier Publishing, Inc.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - This study aims to examine the effect of CSR towards tax avoidance and earnings management practices as well as the role of political connections as moderating variable. This study finds evidence that CSR has a positive effect toward tax avoidance, real earnings management, and aggregate earnings management. The results indicate that broader CSR disclosure is done to cover opportunistic behaviors and maintain the legitimacy and corporate image in the eyes of the stakeholders. However, for political connections, it is generally not proven to have a significant role in moderating the effect of CSR towards tax avoidance and earnings management practices. This research is expected to provide input to users of financial statements to be more careful in assessing company ethics. Besides, the government is also expected to make regulations to ensure that the content of disclosures made by the company is not just a green wash statement for stakeholders.
AB - This study aims to examine the effect of CSR towards tax avoidance and earnings management practices as well as the role of political connections as moderating variable. This study finds evidence that CSR has a positive effect toward tax avoidance, real earnings management, and aggregate earnings management. The results indicate that broader CSR disclosure is done to cover opportunistic behaviors and maintain the legitimacy and corporate image in the eyes of the stakeholders. However, for political connections, it is generally not proven to have a significant role in moderating the effect of CSR towards tax avoidance and earnings management practices. This research is expected to provide input to users of financial statements to be more careful in assessing company ethics. Besides, the government is also expected to make regulations to ensure that the content of disclosures made by the company is not just a green wash statement for stakeholders.
KW - CSR
KW - Earnings management
KW - Political connections
KW - Tax avoidance
UR - http://www.scopus.com/inward/record.url?scp=85071388873&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85071388873
SN - 1083-4346
VL - 24
SP - 229
EP - 248
JO - International Journal of Business
JF - International Journal of Business
IS - 3
ER -