The Effect of Tax Avoidance and Earnings Management on Corporate Social Responsibility
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Abstract
This paper aims to examine the effect of EM and TA on CSR practices in companies listed on the Indonesia Stock Exchange. In particular, this paper investigates which opportunities for EM or TA practice are greater between state-owned and non-state-owned companies. The sampling technique in this study was purposive sampling with a total of 100 samples obtained from SOE (State Owned Enterprise) and privat companies in the industrial sector. The findings of this study with a full sample show that TA has no effect on CSR. Meanwhile, EM has a significant negative effect on CSR. Next, we used a differential test between SOE and Non-SOE samples. The results of this study indicate that TA has no effect on CSR, both in SOE and non-SOE companies. Whereas for EM in Non-SOE companies it will reduce the level of CSR, but in SOE EM does not affect CSR.
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