Tax Avoidance Practices in ASEAN Countries: Effect of Environmental, Social, and Governance, and Capital Intensity
DOI:
https://doi.org/10.14419/39pfp286Published
14-10-2025Keywords:
tax avoidance, environmental, social and governance, capital intensity, firm size, debt to equity ratio, return on assetsAbstract
The purpose of this study is to investigate the environmental, social, and governance (ESG) and capital intensity (CI) factors that affect tax avoidance (TA). The 3,634 non-financial companies in ASEAN countries are the research population. The research sample is 87 companies. Panel data multiple regression is the analysis method employed. The results showed ESG has a positive and significant and CI has a negative and significant to TA. CI and ESG initiatives are intended to improve legitimacy and streamline business processes. There is a substantial difference in TA between the pandemic and the non-pandemic period. The Philippines is a country with a tendency to be more tax-compliant, resulting in a lower level of TA practices. As the tax authority, the government must always keep an eye on how businesses are acting in relation to ESG and their investments in assets to make sure these activities aren't being used as a cover for TA.
References
Abdelfattah, T., & Aboud, A. (2020). Tax avoidance, corporate governance, and corporate social responsibility: The case of the Egyptian capital market. Journal of International Accounting, Auditing and Taxation, 38, 100304. https://doi.org/10.1016/ j.intaccaudtax.2020.100304
Aladwey, L. (2022). Tax Avoidance Practices and Firm-Specific Characteristics: Empirical Evidence from the Egyptian Listed Companies. Science Journal for Commercial Research, 1(1), 43–74. https://doi.org/10.21608/ sjsc.2021.104326.1071
Alareeni, B. A., & Hamdan, A. (2020). ESG Impact on Performance of US S&P 500-Listed Firms. Corporate Governance (Bingley), 20(7), 1409–1428. https://doi.org/10.1108/CG-06-2020-0258
Anggraini, P., & Wahyudi, I. (2022). Pengaruh Reputasi Perusahaan, Environmental, Social and Governance dan Kualitas Audit Terhadap Tax Avoidance. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(2), 643–649. https://doi.org/10.32670/fairvalue.v5i2.2120
Angir, P., & Weli, W. (2024). The Influence of Environmental, Social, and Governance (ESG) Disclosure on Firm Value: An Asymmetric Information Perspective in Indonesian Listed Companies. Binus Business Review, 15(1), 29–40. https://doi.org/10.21512/ bbr.v15i1.10460
Apriani, I. S., & Sunarto. (2022). Pengaruh Leverage, Capital Intensity, dan Inventory Intensity Terhadap Tax Avoidance. Jurnal Ilmiah Komputerisasi Akuntansi, 15(2), 326–333. https://doi.org/10.51903/kompak.v15i2.678
Ariff, A., Wan Ismail, W. A., Kamarudin, K. A., & Mohd Suffian, M. T. (2023). Financial distress and tax avoidance: the moderating effect of the COVID-19 pandemic. Asian Journal of Accounting Research, 8(3), 279–292. https://doi.org/10.1108/AJAR-10-2022-0347
Aziz, N. H. A., Latiff, A. R. A., Osman, M. N. H., & Alshdaifat, S. M. (2024). The interaction effect of family ownership , board gender and skills on CSR strategy with ESG performance : evidence from ASEAN-5 countries. Corporate Governance: The International Journal of Business in Society, 1(1), 1–14. https://doi.org/10.1108/CG-02-2024-0113
Basuki, A. T. (2019). Buku Praktikum Eviews Program Studi Magister Manajemen Universitas Muhammadiyah Yogyakarta. Danisa Media.
Bimo, I. D., Prasetyo, C. Y., & Susilandari, C. A. (2019). The effect of internal control on tax avoidance: the case of Indonesia. Journal of Economics and Development, 21(2), 131–143. https://doi.org/10.1108/jed-10-2019-0042
Candraniawati, R. O., & Suhendra. (2023). Pengaruh Pertumbuhan Penjualan, Leverage, Ukuran Perusahaan, Return on Assets dan Capital Intensity Terhadap Tax Avoidance Studi Empiris pada Perusahaan Industri Sub Sektor Property dan Real Estate yang Terdaftar di BEI Tahun 2018–2021. Prosiding : Ekonomi Dan Bisnis, 3(2), 1–15. https://jurnal.ubd.ac.il
Chairani, R., & Zuraida, Z. (2021). Effects of Environmental, Social, and Governance Disclosures on Organizational Visibility: Empirical Study of Non-Financial Companies Listed on The Indonesia Stock Exchange. Indonesian Journal of Sustainability Accounting and Management, 5(2), 354–363. https://doi.org/10.28992/ijsam.v5i2.476
Chouaibi, J., Rossi, M., & Abdessamed, N. (2022). The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context. Competitiveness Review, 32(3), 326–349. https://doi.org/10.1108/CR-04-2021-0062
Darsani, P. A., & Sukartha, I. M. (2021). The Effect of Institutional Ownership, Profitability, Leverage and Capital Intensity Ratio on Tax Avoidance. American Journal of Humanities and Social Sciences Research, 5(1), 13–22. www.ajhssr.com
Daud, S. N. M., Ghazali, N. S., & Ismail, N. H. M. (2024). ESG, innovation, and economic growth: an empirical evidence. Studies in Economics and Finance, 41(4), 845–870. https://doi.org/10.1108/SEF-11-2023-0692
Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. Pacific Sociological Review, 18(1), 122–136. https://doi.org/10.2307/1388226
Duhoon, A., & Singh, M. (2023). Corporate tax avoidance: a systematic literature review and future research directions. LBS Journal of Management & Research, 21(2), 197–217. https://doi.org/10.1108/lbsjmr-12-2022-0082
Duong, T. Q., & Huang, Y. C. (2022). The Mediation Effects of Tax Avoidance Between ESG and Cost Of Debt, Firm Value: Evidence from Asean Listed Corporations. Journal of Entrepreneurship, Business and Economics, 10(2S2), 201–232. http://scientificia.com/ index.php/JEBE/article/view/198
E-Vahdati, S., Wan-Hussin, W. N., & Mohd Ariffin, M. S. (2022). Sustainability performance and board compensation in Japan and ASEAN-5 countries. Borsa Istanbul Review, 22, S189–S199. https://doi.org/10.1016/j.bir.2022.12.004
El-Deeb, M. S., Ismail, T. H., & Banna, A. A. El. (2023). Does audit quality moderate the impact of environmental, social and governance disclosure on firm value? Further evidence from Egypt. Journal of Humanities and Applied Social Sciences, 5(4), 293–322. https://doi.org/10.1108/jhass-11-2022-0155
Fajarwati, P. A. N., & Ramadhanti, W. (2021). Pengaruh Informasi Akuntansi (ROA, Leverage, Sales Growth, Capital Intensity dan Company Size) dan Company Age Terhadap Tax Avoidance. Jurnal Investasi, 7(1), 1–15. https://doi.org/10.31943/investasi.v7i1.112
Fajriah, N., & Nursita, M. (2024). Pengaruh Pertumbuhan Penjualan, Intensitas Modal, Umur Perusahaan dan Ukuran Perusahaan terhadap Penghindaran Pajak. AKUA: Jurnal Akuntansi Dan Keuangan, 3(2), 62–72. https://doi.org/10.54259/akua.v3i2.2432
Falbo, T. D., & Firmansyah, A. (2019). Thin Capitalization, Transfer Pricing Aggresiveness, Penghindaran Pajak. Indonesian Journal of Accounting and Governance, 2(1), 1–28. https://doi.org/10.36766/ijag.v2i1.11
Firmansyah, M. Y., & Bahri, S. (2022). Pengaruh Leverage, Capital Intensity, Sales Growth, dan Ukuran Perusahaan Terhadap Tax Avoidance. Jurnal Penelitian Dan Pengembangan Sains Dan Humaniora, 6(3), 430–439. https://doi.org/10.23887/jppsh.v6i3.53401
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Cambridge University Press.
Fuadah, L. L., Mukhtaruddin, M., Andriana, I., & Arisman, A. (2022). The Ownership Structure, and The Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable. Economies, 10(12), 314–329. https://doi.org/10.3390/economies10120314
Ghozali, I. (2021). Aplikasi Analisis Multivariate Dengan Program IBM SPSS26. Badan Penerbit Universitas Diponegoro.
Globalwitness. (2019). Jaringan Luar Negeri Milik Adaro. Globalwitness.org, 1–11. https://www.globalwitness.org/ en/campaigns/oil-gas-and-mining/pengalihan-uang-batu-bara-indonesia-bagian-3-saatnya-adaro-membayar-pajak/.
Gunawan, A. (2022). Peranan Good Corporate Governance Dalam Meminimalisir Praktik Penghindaran Pajak Pada Perusahaan Go Publik. Owner: Riset & Jurnal Akuntansi, 6(1), 379–385. https://doi.org/10.33395/owner.v6i1.618
Hidayat, K., & Zuhroh, D. (2023). The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia. International Journal of Energy Economics and Policy, 13(6), 311–320. https://doi.org/10.32479/ ijeep.14557
Inawati, W. A., & Rahmawati. (2023). Dampak Environmental, Social, dan Governance (ESG) Terhadap Kinerja Keuangan. Jurnal Akademi Akuntansi, 6(2), 225–241. https://doi.org/ 10.22219/jaa.v6i2.26674
Ismanto, H., & Pebruary, S. (2021). Aplikasi SPSS Dan Eviews Dalam Analisis Data Penelitian. Deepublish.
Jensen, M. C., & Meckling, W. H. (1979). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure BT - Economics Social Institutions: Insights from the Conferences on Analysis & Ideology (K. Brunner (ed.); 163–231). Springer Netherlands. https://doi.org/10.1007/978-94-009-9257-3_8
Jiang, H., Hu, W., & Jiang, P. (2024). Does ESG Performance Affect Corporate Tax Avoidance? Evidence from China. Finance Research Letters, 61(1), 1–8. https://doi.org/10.1016/ j.frl.2024.105056
Karyani, E., & Perdiansyah, M. R. (2022). ESG and Intellectual Capital Efficiency: Evidence from Asean Emerging Markets. Jurnal Akuntansi Dan Keuangan Indonesia, 19(2), 166–187. https://doi.org/10.21002/jaki.2022.08
Khlifi, S., Chouaibi, Y., & Chouaibi, S. (2024). Do ESG practices mediate the relationship between board characteristics and tax avoidance in G20 countries? Corporate Governance (Bingley), January. https://doi.org/10.1108/CG-11-2023-0498
Kurniawan, T. (2020). Faktor-Faktor yang Mempengaruhi Rasio Beban Pajak Perusahaan: Studi Empiris Sektor Manufaktur di Indonesia. Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara Dan Kebijakan Publik, 5(4), 273 - 283. https://doi.org/10.33105/itrev.v5i4.178
Laqui, I. (2024). BIR Files Tax Evasion Raps vs Alice Guo. Philstar Global.
Law, S. H. (2018). Applied Panel Data Analysis Short Panels. Universitas Putra Malaysia Pers.
Lukman, C. F., Marcello, N., & Andrian, T. (2024). Bridging ESG Disclosures and Corporate Financial Performance: A Study on Top-Listed Companies of the ASEAN-5 Countries. International Journal of Sustainability Policy and Practice, 20(2), 1–26. https://doi.org/ 10.18848/2325-1166/CGP/v20i02/1-26
Maharani, F. S., & Baroroh, N. (2019). Accounting Analysis Journal The Effects of Leverage, Executive Characters, and Institutional Ownership to Tax Avoidance With Political Connection as Moderation. Accounting Analysis Journal, 8(2), 81–87. https://doi.org/10.15294/aaj.v8i2.30039
Mahdiana, M. Q., & Amin, M. N. (2020). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Dan Sales Growth Terhadap Tax Avoidance. Jurnal Akuntansi Trisakti, 7(1), 127–138. https://doi.org/10.25105/jat.v7i1.6289
Mkadmi, J., E., & Ali, W., B. (2024). How does tax avoidance affect corporate social responsibility and financial ratio in emerging economies? Journal of Economic Criminology, 5, 01-08. https://doi.org/10.1016/j.jeconc.2024.100070
Megeid, N. S. A. (2023). The Quadruple Impact of Integrated ESG and CSR Sustainability Voluntary Disclosure on Financial Reporting Quality, Firm Value, Stock Value, and Tax Avoidance: Evidence from Egypt. Journal of Accounting & Auditing, 12(2), 44–126. https://doi.org/10.21608/naus.2023.310136
Mu, H., Xu, J., & Chen, S. (2024). The impact of corporate social responsibility types on happiness management: a stakeholder theory perspective. Management Decision, 62(2), 591–613. https://doi.org/10.1108/MD-02-2023-0267
Muhmad, S. N., Haat, M. H. C., Taha, R., Rashid, N., & Muhmad, S. N. (2020). The Influence of The Financial Indicators Towards The Changes of The Corporate Tax Avoidance. Journal of Advanced Research in Dynamical and Control Systems, 12(1), 167–171. https://doi.org/10.5373/JARDCS/V12I1/20201026
Mukhtaruddin, Susanto, H., Andara, R. novitri, & Abukosim. (2024). Tax Evoidance Practices in Emerging Capital Market: The Effect of Environment, Social and Governance, Audit Quality and Company Risk. Revista de Gestao Social e Ambiental, 18(7), 1–26. https://doi.org/10.24857/rgsa.v18n7-053
Moeljono, M. (2020). Faktor-Faktor yang Mempengaruhi Penghindaran Pajak. Jurnal Penelitan Ekonomi Dan Bisnis, 5(1), 103–121. https://doi.org/10.33633/jpeb.v5i1.2645
Nani. (2022). Step by Step Analisis Regresi Data Panel Menggunakan Eviews (E. G. Ahmad & A. Nurcahyani (eds.)). Visi Intelegensia.
Nguyen, L. H. T., Nguyen, T. T., Le, T. V. N., & Mai, N. D. (2023). Applying Benford’s law to examine earnings management: evidence from emerging ASEAN-5 countries. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-10-2022-0390
Novriyanti, I., & Dalam, W. W. W. (2020). Faktor - Faktor yang Mempengaruhi Penghindaran Pajak. Journal of Applied Accounting and Taxation, 5(1), 24–35. https://doi.org/10.53916/ jam.v35i1.127
Nurlaely, H., & Dewi, R. R. (2023). Pengaruh Pengungkapan Corporate Governance, Environmental Social Governance, Environmental Uncertainty dan Corporate Reputation Terhadap Tax Avoidance. Jurnal Ilmiah Edunomika, 08(1), 1–15. https://doi.org/ 10.29040/jie.v8i1.10581
Nyman, R. C. S., Irawan, P. K., & Lingga, I. S. (2022). Pengaruh Firm Size, Return On Equity, dan Current Ratio Terhadap Tax Avoidance pada Perusahaan LQ 45 yang Terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi, 14(1), 172–186. https://doi.org/10.28932/ jam.v14i1.4375
OECD. (2024). Mobilising ASEAN Capital Markets for Sustainable Growth. Mobilising ASEAN Capital Markets for Sustainable Growth. https://doi.org/10.1787/196b5bde-en
Oktavia, O., Siregar, S. V., Wardhani, R., & Rahayu, N. (2019). The role of country tax environment on the relationship between financial derivatives and tax avoidance. Asian Journal of Accounting Research, 4(1), 70–94. https://doi.org/10.1108/AJAR-01-2019-0009
Omesi, I., & Appah, E. (2021). Corporate Governance and Tax Avoidance of Listed Consumer and Industrial Goods Companies In Nigeria. IOSR Journal of Economics and Finance (IOSR-JEF), 12(2), 17–31. https://doi.org/10.9790/5933-1202041731
Pamungkas, E. W., Effendi, A., & Saepudin, D. (2022). Analisis Pengaruh Profitabilitas, Sales Growth, Firm Size, Leverage dan Capital Intensity Terhadap Penghindaran Pajak. Techno-Socio Ekonomika, 15(1), 61–76. https://doi.org/10.32897/techno.2022.15.1.1083
Prabowo, A., & Sahlan, R. (2022). Pengaruh Profitabilitas, Leverage dan Capital Intensity Terhadap Penghindaran Pajak dengan Ukuran Perusahaan sebagai Variabel (Moderating) (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2015-2019). Media Akuntansi Perpajakan, 6(2), 55–74. https://doi.org/10.52447/map.v6i2.5126
Pratiwi, N. I., Fuadah, L. L., & Yunisvita, Y. (2024). The Influence of Environmental, Social, and Governance (ESG), Political Connections, Gender Diversity, and Capital Intensity on Tax Avoidance. Asian Journal of Management, Entrepreneurship and Social Science, 4(03), 1045–1068. https://doi.org/10.63922/ajmesc.v4i03.972
Putri, S. N., Hariyanto, E., Kusbandiyah, A., & Pandansari, T. (2022). The Effect of Capital Intensity, Leverage, and Institutional Ownership on Tax Avoidance With Profitability As a Moderation Variable. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 07(02), 86–97. https://doi.org/10.32424/1.sar.2022.7.2.7339
Rahma, A. A., Pratiwi, N., Mary, H., & Indriyenni, I. (2022). Pengaruh Capital Intensity, Karakteristik Perusahaan, Dan CSR Disclosure Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur. Owner, 6(1), 677–689. https://doi.org/10.33395/owner.v6i1.637
Rahmadani, I. M., & Abubakar, E. (2020). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, dan Manajemen Laba Terhadap Penghindaran Pajak Dimoderasi oleh Political Connection. Jurnal Riset Akuntansi Dan Keuangan, 8(2), 375–392. https://doi.org/10.17509/ jrak.v8i2.22807
Ramadhan, L., & Wadi, I. (2024). The Effect of ESG, Inventory Intensity and Managerial Ownership on Tax Avoidance. Educoretax, 4(8), 955–968. https://doi.org/10.54957/ educoretax.v4i8.1026
Rifai, A., & Atiningsih, S. (2019). Pengaruh Leverage, Profitabilitas, Capital Intensity, Manajemen Laba Terhadap Penghindaran Pajak. Econbank: Journal of Economics and Banking, 1(2), 135–142. https://doi.org/10.35829/ econbank.v1i2.48
Ruan, L., & Liu, H. (2021). Environmental, Social, Governance Activities and Firm Performance: Evidence from China. Sustainability (Switzerland), 13(2), 1–16. https://doi.org/10.3390/ su13020767
Sinaga, C. H., & Suardikha, I. M. S. (2019). Pengaruh Leverage dan Capital Intensity pada Tax Avoidance dengan Proporsi Komisaris Independen sebagai Variabel Pemoderasi. E-Jurnal Akuntansi Universitas Udayana, 27(1), 1–32. https://doi.org/10.24843/eja.2019.v27.i01.p01
Souguir, Z., Lassoued, N., Khanchel, I., & Bouzgarrou, H. (2024). Environmental performance and corporate tax avoidance: Greenwashing policy or eco-responsibility? The moderating role of ownership structure. Journal of Cleaner Production, 434, 140152 https://doi.org/10.1016/j.jclepro.2023.140152
Stawati, V. (2020). Pengaruh Profitabilitas, Leverage, dan Ukuran Perusahaan Terhadap Penghindaran Pajak. Jurnal Akuntansi Dan Bisnis: Jurnal Program Studi Akuntansi, 6(2), 147–157. https://doi.org/10.31289/jab.v6i2.3472
Suciarti, C., Suryani, E., & Kurnia, K. (2020). The Effect of Leverage, Capital Intensity and Deferred Tax Expense on Tax Avoidance. Journal of Accounting Auditing and Business, 3(2), 76–83. https://doi.org/10.24198/ jaab.v3i2.28624
Sugimin, Indarto, & Indudewi, D. (2024). Do Environmental, Social, and Governance (ESG), Leverage, and Financial Performance Affect Tax Avoidance? Jurnal Konsep Bisnis Dan Manajemen, 10(2), 209–222. https://doi.org/10.31289/jkbm.v10i2.11732
Sumunar, K., & Djakman, C. (2020). CEO Overconfidence, ESG Disclosure, and Firm Risk. Jurnal Akuntansi Dan Keuangan Indonesia, 17(1), 1–21. https://doi.org/10.21002/ jaki.2020.01
Tanujaya, K., & Cantikasari, A. (2022). Dampak Pengendalian Internal dan Penghindaran Pajak dengan Moderasi Kepemilikan Keluarga dan Ketidakpastian Lingkungan. Jurnal Akuntansi Trisakti, 9(2), 155–178. https://doi.org/10.25105/jat.v9i2.14762
Teja, A. (2024). Environmental, Social and Governance Disclosure Scores and Tax Avoidance. Jurnal Ilmiah Akuntansi, 9(1), 186–209. https://doi.org/10.23887/jia.v9i1.69573
Ulfa, E. K., Suprapti, E., & Latifah, S. W. (2021). The Effect of CEO Tenure, Capital Intensity, and Firm Size on Tax Avoidance. Jurnal Reviu Akuntansi Dan Keuangan, 11(1), 77–86. https://doi.org/10.22219/jrak.v11i1.16140
VOA Indonesia. (2019). Pengadilan Thailand Denda Philip Morris Karena Hindari Pajak. https://www.voaindonesia.com/a/pengadilan-thailand-denda-philip-morris-karena-hindari-pajak/5186156.html. Diakses pada 18 November 2024
Wang, J., Fan, W., & Wang, Z. (2024). Tax Incentives and Earnings Management: A Study Based on Accelerated Depreciation Policy in China. Economic Analysis and Policy, 81(8), 281–296. https://doi.org/10.1016/j.eap.2023.11.036
Widadi, F. A., Subroto, B., & Rahman, A. F. (2022). Tax Avoidance Mediated by Constitutional Ownership as Moderating Variables. Etikonomi, 21(2), 411–430. https://doi.org/10.15408/ etk.v21i2.25799
Yoon, B. H., Lee, J. H., & Cho, J. H. (2021). The Effect of ESG Performance on Tax Avoidance—Evidence from Korea. Sustainability, 13(12), 1–16. https://doi.org/10.3390/su13126729
Yudhanto, W., & Simamora, A. J. (2023). Environmental, Social, and Governance Risk on Firm Performance: The Mediating Role of Firm Risk. Binus Business Review, 14(2), 223–234. https://doi.org/10.21512/bbr.v14i2.8935
Zhang, C., Zhang, S., Lu, P., & Yan, J. (2021). ESG Ratings and Corporate Tax Avoidance-An Analysis based on Chinese A-share Listed Companies. Scientific Journal of Economics and Management Research, 3(12), 16–27. https://doi.org/10.1177/21582440251341282
Zoebar, M. K. Y., & Miftah, D. (2020). Pengaruh Corporate Social Responsibility, Capital Intensity dan Kualitas Audit Terhadap Penghindaran Pajak. Jurnal Magister Akuntansi Trisakti, 7(1), 25–40. https://doi.org/10.25105/jmat.v7i1.6315