Corporate Social Responsibility and Tax Avoidance: Does Financial Performance Matters?

Annisa Wulandari, Bani Alkausar, Ajeng Rachma Pertiwi, Nitami Galih Pangesti, Prinintha Nanda Soemarsono

Abstract


This study aims to examine the relationship between corporate social responsibility (CSR) and tax avoidance in Indonesia. The moderating effect of financial performance as measured by Return on Asset (ROA) is also examined in this study. The researcher examined 312 samples of OSIRIS 2022–2024 companies using Eviews. The results of the study show that CSR has a positive impact on tax avoidance and that financial performance does not mitigate this effect. The findings show that the company is doing CSR as a hedging measure. Therefore, this study adds to the evidence that companies do CSR and pay taxes to demonstrate the implementation of risk management.


Keywords


CSR, Financial Performance, Tax Avoidance

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References


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DOI: https://doi.org/10.21107/jaffa.v13i2.31646

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