The Influence of Corporate Social Responsibility, Fiscal Loss Compensation, and Executive Risk Preference on Tax Avoidance

Lindawati Lindawati; Wulandari Cahyani Putri; Syamsul Muarif

Authors

Lindawati Lindawati Department of Accounting, Faculty of Economics and Business, Universitas Pamulang
Wulandari Cahyani Putri Department of Accounting, Faculty of Economics and Business, Universitas Pamulang
Syamsul Muarif Department of Accounting, Faculty of Economics and Business, Universitas Pamulang

Keywords:

Tax Avoidance, Corporate Social Responsibility, Fiscal Loss Compensation, Executive Risk Preference

Abstract

Tax avoidance remains a critical issue for governments and businesses, as it directly impacts state revenue, corporate reputation, and public trust. In Indonesia’s food and beverage industry, the complexity of regulations and diverse corporate strategies create opportunities for tax avoidance that warrant closer examination. This study analyzes the influence of corporate social responsibility, fiscal loss compensation, and executive risk preference on tax avoidance among food and beverage companies listed on the Indonesia Stock Exchange during 2018–2022. Using a quantitative approach, the research employs secondary data from annual financial reports and applies panel data regression analysis. The results show that, simultaneously, all three variables significantly affect tax avoidance. However, partially, corporate social responsibility and fiscal loss compensation have no significant effect, while executive risk preference has a significant negative impact, indicating that risk-averse executives are less inclined to adopt aggressive tax strategies. These findings provide empirical evidence on behavioral and institutional factors shaping corporate tax behavior and highlight the role of executive characteristics in tax policy. The study is limited by its sector-specific sample and selected variables, suggesting opportunities for broader research in the future.

References

Afsar, B. and Umrani, W.A. (2020) ‘Corporate social responsibility and pro‐environmental behavior at workplace: The role of moral reflectiveness, coworker advocacy, and environmental commitment’, Corporate Social Responsibility and Environmental Management, 27(1), pp. 109–125.

Akinsola, K. (2025) ‘Legal Frameworks for Corporate Tax Compliance: Navigating Local and Global Regulations’, Available at SSRN 5127003 [Preprint].

Ardillah, K. and Halim, Y. (2022) ‘The effect of institutional ownership, fiscal loss compensation, and accounting conservatism on tax avoidance’, Journal of Accounting Auditing and Business, 5(1), pp. 1–15.

Arianty, F. et al. (2024) Perpajakan Dan Corporate Citizenship. Nas Media Pustaka.

Baghdadi, G., Podolski, E.J. and Veeraraghavan, M. (2022) ‘CEO risk-seeking and corporate tax avoidance: Evidence from pilot CEOs’, Journal of Corporate Finance, 76, p. 102282.

Christensen, D.M. et al. (2015) ‘Top management conservatism and corporate risk strategies: Evidence from managers’ personal political orientation and corporate tax avoidance’, Strategic Management Journal, 36(12), pp. 1918–1938.

Desai, M.A. and Dharmapala, D. (2006) ‘Corporate tax avoidance and high-powered incentives’, Journal of financial Economics, 79(1), pp. 145–179.

Dewi, B.N. and Mabrur, A. (2022) ‘Pengaruh Corporate Social Responsibility, Insentif Pejabat Eksekutif, dan Tata Kelola Perusahaan terhadap Agresivitas Pajak’, Jurnal Pajak Dan Keuangan Negara (PKN), 4, pp. 236–244.

Dwi, R.C. and Yulita, R.H. (2022) ‘Pengaruh Corporate Social Responsibility dan Ukuran Perusahaan Terhadap Penghindaran Pajak’, Journal of Information System, Applied, Management, Accounting and Research, 6(1), pp. 47–57.

Dyreng, S.D., Hanlon, M. and Maydew, E.L. (2008) ‘Long‐run corporate tax avoidance’, The accounting review, 83(1), pp. 61–82.

Jao, R. and Holly, A. (2022) ‘Pengaruh Profitabilitas, Likuiditas, Leverage, Ukuran Perusahaan Dan Corporate Social Responsibility Terhadap Penghindaran Pajak’, Accounting, Accountability, and Organization System (AAOS) Journal, 4(1), pp. 14–34.

Jensen, M. and Meckling, W. (1976) ‘Theory of the firm: Managerial behavior, agency costs, and ownership structure’, The Economic Nature of the Firm: A Reader, Third Edition, pp. 283–303. Available at: https://doi.org/10.1017/CBO9780511817410.023.

Kamil, M.I. (2022) ‘Pengaruh Capital Intensity, Risiko Perusahaan, Kompensasi Rugi Fiskal Terhadap Penghindaran Pajak’, AKUA: Jurnal Akuntansi dan Keuangan, 1(3), pp. 361–369.

Kusumawardani, A. et al. (2025) ‘The Effect of Chief Executive Officer Demographics and Psychological Traits on Tax Aggressiveness in Indonesia’, Jurnal Dinamika Akuntansi, 17(1), pp. 65–84.

Lestari, M.A. and Anjarningsih, D. (2024) ‘Menelaah Dinamika Leverage, Tata Kelola Perusahaan, dan Atribut Perusahaan dalam Membentuk Penghindaran Pajak di Kalangan Perusahaan yang Terdaftar di LQ45’, Jurnal Inovasi Pajak Indonesia, 1(2), pp. 84–96.

Mardiasmo (2018) Perpajakan Edisi Revisi Tahun 2018, Penerbit Andi.

Merks, P. (2006) ‘Tax evasion, tax avoidance and tax planning’, Intertax, 34, p. 272.

Paligorova, T. (2010) Corporate risk taking and ownership structure. Bank of Canada Working Paper.

Prasetyo, W.F. and Arif, A. (2022) ‘Pengaruh Profitabilitas, Corporate Social Responsibility, Leverage, Dan Capital Intensity Terhadap Penghindaran Pajak’, Jurnal Ekonomi Trisakti, 2(2), pp. 375–390.

Pratiwi, F.F. (2022) ‘Pengaruh Good Corporate Governance dan Corporate Social Responsibility Disclosure terhadap Tax Avoidance’. STIE YKPN.

Putri, R.T., Ulum, I. and Prasetyo, A. (2018) ‘Company risk, size, fiscal loss compensation, and tax avoidance: Evidence from Indonesian islamic companies’, Journal of Innovation in Business and Economics, 2(02), pp. 87–94.

Rahman, A.N. and Sari, F.U. (2024) ‘Apakah Tanggung Jawab Sosial Perusahaan dan Tata Kelola Perusahaan Mempengaruhi Perilaku Perpajakan?’, Jurnal Inovasi Pajak Indonesia, 1(2), pp. 97–109.

Sirait, Y.E.R., Sinaga, J.T.G. and Sitompul, G.O. (2024) ‘Manajemen Risiko Pajak Sebagai Pemoderator Pengaruh Corporate Social Responsibility Terhadap Penghindaran Pajak.’, Jurnal Pendidikan Indonesia, 5(12).

Sugiyono (2018) Metode Penelitian Kuantitatif, Kualitatif dan R & D, 26. Bandung: Bandung: CV Alfabeta.

Susanto, A. (2022) ‘Pengaruh corporate social responsibility (CSR) dan karakteristik perusahaan terhadap praktik penghindaran pajak perusahaan yang terdaftar di bursa efek indonesia’, Owner: Riset dan Jurnal Akuntansi, 6(1), pp. 541–553.

Wahyu Winarno, W. (2015) ‘Analisis Ekonometrika dan Statistika dengan Eviews’, Edisi Empat. Yogyakarta: UPP STIM YKPN [Preprint].

Yahaya, M.B., Oon, E.Y.N. and Jusoh, R. (2025) ‘Board structure, executive attributes and corporate tax avoidance: a systematic literature review’, Asian Review of Accounting [Preprint].