EFFECT OF CORPORATE GOVERNANCE AND TAX AVOIDANCE ON FIRM VALUE: CSR AS MODERATION
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Aug 28, 2023
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Abstract
This study aims to determine the effect of Corporate Governance and Tax Avoidance on Firm Value with CSR as a moderating variable in mining sector companies in Indonesia. This study uses a descriptive quantitative approach. The method used is multiple linear regression analysis and Moderate Regression Analysis (MRA) using 22 samples of mining sector companies listed on the IDX during the 2017-2021 period. The result of the study show that the Independent Board of Commissioners and Tax Avoidance have a positife effect on Firm Value, while Managerial Ownership has a negative effect on Firm Value. Futhermore, CSR can negative and significantly moderate the relationship between the Independent Board of Commissioners on Firm Value. In addition, CSR can also negatively moderate the relationship between Managerial Ownership and Firm Value. However, CSR cannot moderate the relationship between Tax Avoidance and Firm Value.
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ARDHA, Muhammad Zulfi; PRAJAWATI, Maretha Ika; S, Basir.
EFFECT OF CORPORATE GOVERNANCE AND TAX AVOIDANCE ON FIRM VALUE: CSR AS MODERATION.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 9, n. 1, p. 319-330, aug. 2023.
ISSN 2541-3333.
Available at: <http://conferences.uin-malang.ac.id/index.php/iconies/article/view/2276>. Date accessed: 02 may 2024.
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References
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Alijoyo, A., & Zaini, S. (2004). KOMISARIS INDEPENDEN: Penggerak Praktik GCG di Perusahaan. PT INDEKS kelompok GRAMEDIA.
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Coles, J. L., Lemmon, M. L., & Meschke, J. F. (2012). Structral models and endogeneity in corporate finance: the link between managerial ownership and corporate performance. Journal of Financial Economics, 103(1), 149–168.
Crisóstomo, V. L., & Freire, F. de S. (2015). The influence of ownership concentration on firm resource allocations to employee relations, external social actions, and evironmental action. Revista Brasileira de Gestao de Negocios, 17(55), 987–1006.
Denziana, A., & Monica, W. (2016). Analisis Ukuran Perusahaan dan Profitabilitas terhadap Nilai Perusahaan (Studi Empiris pada Perusahaan yang Tergolong LQ45 di BEI Periode 2011-2014). Jurnal Akuntansi Dan Keuangan, 7(2), 241–254.
Desai, M. A., Dyck, A., & Zingales, L. (2007). Theft and taxation. Journal of Financial Economics, 84(3), 591–660.
Dewi, R. S. (2019). REGULASI PERTAMBANGAN. Yustitiabelen, 5(1), 69–80.
Dias, A., Rodrigues, L. L., & Craig, R. (2017). Corporate governance effects on social responsibility disclosures. Australian Accounting: Business and Finance Journal, 11(2), 3–22.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2008). Long-run corporate tax avoidance. The Accounting Review, 83(1), 61–82.
Dzahabiyya, J., Jhoansyah, D., & Danial, R. D. M. (2020). Analisis Nilai Perusahaan Dengan Model Rasio Tobin’s Q. Jurnal Riset Akuntansi Dan Keuangan Dewantara, 4(1), 46–55.
Ehikioya, B. I. (2009). Corporate governance structure and firm performance in developing economies: evidence from Nigeria. Corporate Governance: The International Journal of Business in Society, 9(3), 231–243.
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Fahlenbrach, R., & Stulz, R. M. (2009). Managerial ownership dynamics and firm value. Journal of Financial Economics, 92(3), 342–361.
Fallah, M. A., & Mojarrad, F. (2019). Corporate governance effects on corporate social responsibility disclosure: Empirical evidence from heavy-pollution industries in Iran. Social Responsibility Journal, 15(2), 208–225.
Garas, S., & ElMassah, S. (2018). Corporate governance and corporate social responsibility disclosures: The case of GCC countries. Critical Perspective on International Business, 14(1), 2–26.
Ghabayen, M. A., Mohamad, N. R., & Ahmad, N. (2016). Board characteristics and corporate social responsibility disclosure in the Jordanian banks. Corporate Board: Role, Duties and Composition, 12(1), 84–99.
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Hai, N. M., Anh, P. T., Yue, X.-G., & Nam, N. H. P. (2021). The impact of tax avoidance on the value of listed firms in Vietnam. Cogent Business & Management, 8(1), 1–13.
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Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2013). Corporate governance and corporate social responsibility disclosure: evidence from the US Banking sector. Journal of Business Ethics, 125(4), 601–615.
Khan, N., Abraham, O. O., Alex, A., Eluyela, D. F., & Odianonsen, I. F. (2022). Corporate governance, tax avoidance, and corporate social responsibility: Evidence of emerging market of Nigeria and frontier market of Pakistan. Cogent Economics & Finance, 10(1), 1–22.
Kiliç, M., Kuzey, C., & Uyar, A. (2015). The impact of ownership and board structure on corporate social responsibility in the Turkish banking industry. Corporate Governance: The International Journal of Business in Society, 15(3), 357–374.
Klapper, L. F., & Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 16(5), 703–728.
López‐González, E., Martinez-Ferrero, J., & Garcia-Meca, E. (2019). Does corporate social responsibility affect tax avoidance: Evidence from family firms. Corporate Social Responsibility and Environmetal Management, 26(4), 819–831.
Majeed, S., Aziz, T., & Saleem, S. (2015). The effect of corporate governance elements on corporate social responsibility (CSR) disclouse: An empirical evidance from listed companies at KSE Pakistan. International Journal of Finance Studies, 3(4), 530–556.
Misrha, R. K., & Kapil, S. (2018). Board characteristics and firm value for Indian companies. Journal of Indian Business, 10(1), 2–32.
Nugroho, W. C., & Agustia, D. (2017). Corporate Governance, Tax Avoidance and Firm Value. AFEBI Accounting Review, 2(2), 15–29.
Orazalin, N. (2019). Corporate governance and corporate social responsibility (CSR) disclosure in an emerging economy: Evidence from comercial banks of Kazakhstan. Corporate Governance: The International Journal of Business in Society, 19(3), 490–507.
Ratih, I. D. A., & Damayanthi, I. G. A. E. (2016). Kepemilikan Manajerial Dan Profitabilitas Pada Nilai perusahaan, Dengan Pengungkapan Tanggung Jawab Sosial Sebagai Variabel Pemoderasi. E-Jurnal Akuntansi Universitas Udayana, 14(2), 1510–1538.
Santa, S. L. L., & Rezende, A. J. (2016). Corporate tax avoidance and firm value: from brazil. Sistema De Información Cientifica, 13(30), 114–133.
Setiawati, R. A., & Ammar, M. (2022). Analisis Determinan Tax Avoidance Perusahaan Sektor Pertambangan di Indonesia. Jurnal MANOVA, 5(2), 92–105.
Sharif, M., & Rashid, K. (2014). Corporate governance and corporate social responsibility (CSR) reporting: an empirical evidence commercial banks (CB) of Pakistan. Quality & Quantity, 48(5), 2501–2521.
Stacia, E., & Juniarti. (2015). Pengaruh Corporate Social Responsibility terhadap Nilai Perusahaan di Sektor Pertambangan. Business Accounting Review, 3(2), 81–90.
Thaib, I., & Dewantoro, A. (2017). Pengaruh Profitabilitas dan Likuiditas terhadap Nilai Perusahaan dengan Struktur Modal sebagai Variabel Intervening. Jurnal Riset Perbankan Manajemen Dan Akuntansi, 1(1), 25–44.
Yudha, Latifah, & Prasetyo, A. (2014). Pengaruh Corporate Governance Terhadap Kinerja Keuangan Perusahaan Manufaktur yang Go Public di BEI. Jurnal Ekonomi Universitas Muhamadiyah Malang.
Zeng, T. (2018). Relationship between corporate social responsibility and tax avoidance: International evidance. Corporate Social Responsibility Journal, 15(2), 244–257.
Adityamurti, E., & Ghozali, I. (2017). Pengaruh Penghindaran Pajak dan Biaya Agensi terhadap Nilai Perusahaan. Diponegoro Journal of Accounting, 6(3), 1–12.
Alijoyo, A., & Zaini, S. (2004). KOMISARIS INDEPENDEN: Penggerak Praktik GCG di Perusahaan. PT INDEKS kelompok GRAMEDIA.
Chen, X., Hu, N., Wang, X., & Tang, X. (2014). Tax avoidance and firm value: Evidence from China. Nakai Businness Review International, 5(1), 25–42.
Coles, J. L., Lemmon, M. L., & Meschke, J. F. (2012). Structral models and endogeneity in corporate finance: the link between managerial ownership and corporate performance. Journal of Financial Economics, 103(1), 149–168.
Crisóstomo, V. L., & Freire, F. de S. (2015). The influence of ownership concentration on firm resource allocations to employee relations, external social actions, and evironmental action. Revista Brasileira de Gestao de Negocios, 17(55), 987–1006.
Denziana, A., & Monica, W. (2016). Analisis Ukuran Perusahaan dan Profitabilitas terhadap Nilai Perusahaan (Studi Empiris pada Perusahaan yang Tergolong LQ45 di BEI Periode 2011-2014). Jurnal Akuntansi Dan Keuangan, 7(2), 241–254.
Desai, M. A., Dyck, A., & Zingales, L. (2007). Theft and taxation. Journal of Financial Economics, 84(3), 591–660.
Dewi, R. S. (2019). REGULASI PERTAMBANGAN. Yustitiabelen, 5(1), 69–80.
Dias, A., Rodrigues, L. L., & Craig, R. (2017). Corporate governance effects on social responsibility disclosures. Australian Accounting: Business and Finance Journal, 11(2), 3–22.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2008). Long-run corporate tax avoidance. The Accounting Review, 83(1), 61–82.
Dzahabiyya, J., Jhoansyah, D., & Danial, R. D. M. (2020). Analisis Nilai Perusahaan Dengan Model Rasio Tobin’s Q. Jurnal Riset Akuntansi Dan Keuangan Dewantara, 4(1), 46–55.
Ehikioya, B. I. (2009). Corporate governance structure and firm performance in developing economies: evidence from Nigeria. Corporate Governance: The International Journal of Business in Society, 9(3), 231–243.
Fadillah, A. R. (2017). Analisis Pengaruh Dewan Komisaris Independen, Kepemilikan Manajerial dan Kepemilikan institusional terhadap Kinerja Perusahaan yang terdaftar di LQ45. Jurnal Akuntansi, 12(1), 37–52.
Fahlenbrach, R., & Stulz, R. M. (2009). Managerial ownership dynamics and firm value. Journal of Financial Economics, 92(3), 342–361.
Fallah, M. A., & Mojarrad, F. (2019). Corporate governance effects on corporate social responsibility disclosure: Empirical evidence from heavy-pollution industries in Iran. Social Responsibility Journal, 15(2), 208–225.
Garas, S., & ElMassah, S. (2018). Corporate governance and corporate social responsibility disclosures: The case of GCC countries. Critical Perspective on International Business, 14(1), 2–26.
Ghabayen, M. A., Mohamad, N. R., & Ahmad, N. (2016). Board characteristics and corporate social responsibility disclosure in the Jordanian banks. Corporate Board: Role, Duties and Composition, 12(1), 84–99.
Gibson, M. S. (2003). Is corporate governance ineffective in emerging markets? Journal of Financial and Quantitative Analysis, 38(1), 231–250.
Hai, N. M., Anh, P. T., Yue, X.-G., & Nam, N. H. P. (2021). The impact of tax avoidance on the value of listed firms in Vietnam. Cogent Business & Management, 8(1), 1–13.
Htay, S. N. N., Rashid, H. M. A., Adnan, M. A., & Meera, A. K. M. (2012). Impact of corporate governance on social and environmental information discosure of Malaysian listed banks: Panel data analysis. Asian Journal of Finance & Accounting, 4(1), 1–24.
Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2013). Corporate governance and corporate social responsibility disclosure: evidence from the US Banking sector. Journal of Business Ethics, 125(4), 601–615.
Khan, N., Abraham, O. O., Alex, A., Eluyela, D. F., & Odianonsen, I. F. (2022). Corporate governance, tax avoidance, and corporate social responsibility: Evidence of emerging market of Nigeria and frontier market of Pakistan. Cogent Economics & Finance, 10(1), 1–22.
Kiliç, M., Kuzey, C., & Uyar, A. (2015). The impact of ownership and board structure on corporate social responsibility in the Turkish banking industry. Corporate Governance: The International Journal of Business in Society, 15(3), 357–374.
Klapper, L. F., & Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 16(5), 703–728.
López‐González, E., Martinez-Ferrero, J., & Garcia-Meca, E. (2019). Does corporate social responsibility affect tax avoidance: Evidence from family firms. Corporate Social Responsibility and Environmetal Management, 26(4), 819–831.
Majeed, S., Aziz, T., & Saleem, S. (2015). The effect of corporate governance elements on corporate social responsibility (CSR) disclouse: An empirical evidance from listed companies at KSE Pakistan. International Journal of Finance Studies, 3(4), 530–556.
Misrha, R. K., & Kapil, S. (2018). Board characteristics and firm value for Indian companies. Journal of Indian Business, 10(1), 2–32.
Nugroho, W. C., & Agustia, D. (2017). Corporate Governance, Tax Avoidance and Firm Value. AFEBI Accounting Review, 2(2), 15–29.
Orazalin, N. (2019). Corporate governance and corporate social responsibility (CSR) disclosure in an emerging economy: Evidence from comercial banks of Kazakhstan. Corporate Governance: The International Journal of Business in Society, 19(3), 490–507.
Ratih, I. D. A., & Damayanthi, I. G. A. E. (2016). Kepemilikan Manajerial Dan Profitabilitas Pada Nilai perusahaan, Dengan Pengungkapan Tanggung Jawab Sosial Sebagai Variabel Pemoderasi. E-Jurnal Akuntansi Universitas Udayana, 14(2), 1510–1538.
Santa, S. L. L., & Rezende, A. J. (2016). Corporate tax avoidance and firm value: from brazil. Sistema De Información Cientifica, 13(30), 114–133.
Setiawati, R. A., & Ammar, M. (2022). Analisis Determinan Tax Avoidance Perusahaan Sektor Pertambangan di Indonesia. Jurnal MANOVA, 5(2), 92–105.
Sharif, M., & Rashid, K. (2014). Corporate governance and corporate social responsibility (CSR) reporting: an empirical evidence commercial banks (CB) of Pakistan. Quality & Quantity, 48(5), 2501–2521.
Stacia, E., & Juniarti. (2015). Pengaruh Corporate Social Responsibility terhadap Nilai Perusahaan di Sektor Pertambangan. Business Accounting Review, 3(2), 81–90.
Thaib, I., & Dewantoro, A. (2017). Pengaruh Profitabilitas dan Likuiditas terhadap Nilai Perusahaan dengan Struktur Modal sebagai Variabel Intervening. Jurnal Riset Perbankan Manajemen Dan Akuntansi, 1(1), 25–44.
Yudha, Latifah, & Prasetyo, A. (2014). Pengaruh Corporate Governance Terhadap Kinerja Keuangan Perusahaan Manufaktur yang Go Public di BEI. Jurnal Ekonomi Universitas Muhamadiyah Malang.
Zeng, T. (2018). Relationship between corporate social responsibility and tax avoidance: International evidance. Corporate Social Responsibility Journal, 15(2), 244–257.