The impact of corporate reputation and ESG practices on tax avoidance in Indonesian consumer non-cyclicals companies
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Abstract
This study investigates the impact of corporate reputation and Environmental, Social, and Governance (ESG) practices on tax avoidance among companies in Indonesia’s consumer non-cyclicals sector. Using a quantitative descriptive approach, the research employs secondary data obtained from companies listed on the Indonesia Stock Exchange (IDX) during the 2018–2023 period. A purposive sampling technique was applied, yielding eight companies with a total of 48 observations. Data analysis was conducted using panel data regression through EViews 12 and Microsoft Excel. The empirical findings reveal that corporate reputation, environmental, social, and governance variables collectively exert a significant influence on tax avoidance. Partially, the environmental and governance dimensions significantly affect tax avoidance, while corporate reputation and the social dimension show no significant effect. The results suggest that companies demonstrating stronger environmental responsibility and governance quality tend to engage less in aggressive tax avoidance practices, highlighting the strategic role of ESG implementation in promoting corporate transparency and ethical conduct. Future research is encouraged to include additional sectors and variables such as firm size, profitability, and audit quality to enhance the robustness of the findings.
Keywords: corporate reputation, environmental, social, governance, ESG, tax avoidance
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