The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia
The aim of the present study is to empirically estimate the impact of ESG, composition of company directors, ownership structure and financial performance on tax avoidance. To achieve the study objectives, 114 companies listed on Indonesian Stock Exchange market are selected covering the data span...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2023-11-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/14557 |
| _version_ | 1797631137509539840 |
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| author | Kadarisman Hidayati Diana Zuhroh |
| author_facet | Kadarisman Hidayati Diana Zuhroh |
| author_sort | Kadarisman Hidayati |
| collection | DOAJ |
| description |
The aim of the present study is to empirically estimate the impact of ESG, composition of company directors, ownership structure and financial performance on tax avoidance. To achieve the study objectives, 114 companies listed on Indonesian Stock Exchange market are selected covering the data span over 2013-2020 period. Institutional ownership, female directors, ESG performance, return on assets and firm size are taken as the measures of ownership structure, composition of company directors, ESG and financial performance respectively. Empirical analysis is carried out using Fixed Effects Model as it is found as the appropriate estimation technique in Hausman test and Breusch-Pagan test. According to the study findings, EGS, ownership structure, composition of company directors all have significant and negative impact on tax avoidance. Among financial performance indicators, only firm size has negative and significant impact while return on assets has no significant effect on tax avoidance. The study recommends the firms or businesses to pay attention to ESG factors, institutional ownership and female directorship as these factors are found to have prominent role in improving tax avoidance behavior.
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| first_indexed | 2024-03-11T11:17:29Z |
| format | Article |
| id | doaj.art-6852c3a173e54620968b0c96c089afe0 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-03-11T11:17:29Z |
| publishDate | 2023-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-6852c3a173e54620968b0c96c089afe02023-11-10T18:10:09ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532023-11-0113610.32479/ijeep.14557The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from IndonesiaKadarisman Hidayati0Diana Zuhroh1Faculty of Administrative Science, University of Brawijaya, Malang, Indonesia,University of Merdeka Malang, Indonesia. The aim of the present study is to empirically estimate the impact of ESG, composition of company directors, ownership structure and financial performance on tax avoidance. To achieve the study objectives, 114 companies listed on Indonesian Stock Exchange market are selected covering the data span over 2013-2020 period. Institutional ownership, female directors, ESG performance, return on assets and firm size are taken as the measures of ownership structure, composition of company directors, ESG and financial performance respectively. Empirical analysis is carried out using Fixed Effects Model as it is found as the appropriate estimation technique in Hausman test and Breusch-Pagan test. According to the study findings, EGS, ownership structure, composition of company directors all have significant and negative impact on tax avoidance. Among financial performance indicators, only firm size has negative and significant impact while return on assets has no significant effect on tax avoidance. The study recommends the firms or businesses to pay attention to ESG factors, institutional ownership and female directorship as these factors are found to have prominent role in improving tax avoidance behavior. https://econjournals.com/index.php/ijeep/article/view/14557Ownership structureESGComposition of company directorsFinancial performanceIndonesia |
| spellingShingle | Kadarisman Hidayati Diana Zuhroh 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 Ownership structure ESG Composition of company directors Financial performance Indonesia |
| title | The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia |
| title_full | The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia |
| title_fullStr | The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia |
| title_full_unstemmed | The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia |
| title_short | The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia |
| title_sort | impact of environmental social and governance sustainable financial performance ownership structure and composition of company directors on tax avoidance evidence from indonesia |
| topic | Ownership structure ESG Composition of company directors Financial performance Indonesia |
| url | https://econjournals.com/index.php/ijeep/article/view/14557 |
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