The Nexus Between Corporate Governance, CSR and Firm Value: Tax Avoidance Role as Intervening Variable
Bayu Adi1, Grahita Chandrarin2, Harmono3*

1,2,3 Doktor Ilmu Ekonomi, Universitas Merdeka Malang, Malang, Indonesia

* Corresponding Author: Harmono Harmono. Email: harmono[at]unmer.ac.id

ORCID ID:
Grahita Chandrarin, http://orcid.org/0000-0002-7024-1315
Harmono Harmono, http://orcid.org/0000-0002-1933-5017

Abstract

This research investigates the role of tax avoidance on the relationship between corporate governance and corporate social responsibility with firm value. The research design is explanatory research, through hypothesis testing, with a research sample of 175 manufacturing companies observed during the 2017 - 2021 period, with a sample size of 875. Analysis technique by using panel regression with SPSS software. The research findings after conducting robustness tests of the model, using leverage as a control variable, robustly show Institutional ownership and Corporate Social Responsibility of Economic (CSR) influence tax avoidance. Next, Tax avoidance partially mediates the relationship between Institutional Ownership and Firm Value, and fully mediates between Economic CSR and Firm Value. The implications, for academics and practitioners, show that enforcing corporate governance requires the role of institutional ownership to supervise the determination of company managerial policies. Apart from that, the economic CSR program can reduce Tax Avoidance and is responded to positively by investors. The limitations of the research show that the constant value is significant, it requires additional variables in the model. Recommendations for further research can be explored by adding company performance, gender, and intellectual capital variables

Keywords: Corporate Governance, Corporate Social Reponsibility, Tax Avoidance, Leverage, Firm Value

Topic: Green Management and Business