The Influence of ESG (Environmental, Social, and Governance) on the Performance of Tax Payments in Technology Companies Listed on the IDX for the Period of 2017-2021
- Publication History
- Published online: August 31, 2023
- DOI
- https://doi.org/10.35877/454RI.daengku1920
- Copyright
- Copyright (c) 2023 Jessica Felicia, Yusnaini
Abstract
State revenues are sourced from various sectors, and one of its sectors comes from taxes. Indonesian state income from taxes is about 78% of total state income. ESG has become a new trend for investors in determining their investment decisions. Every company is not separate from its obligation to pay taxes. Meanwhile, technology companies are the companies that are included in the Indonesian stock exchange, which is one of the sources of tax revenue in Indonesia concerning Environmental, Social, and Governance (ESG). This type of research is quantitative research, and the type of data used secondary data. The population was from the technology company contained in the Indonesian Stock Exchange financial sector from 2022. The sampling technique used in selecting samples was purposive sampling. The results of this study reveal that ESG has no significant influence on the payment of a tax payment technology company that is running on the financial sector listed on the Indonesian Stock Exchange (IDX) since only Environmental variables (ENV) affect tax payment performance. Then, Social (SOC) and Corporate Governance (CGV) have no significant influence on tax payment performance. In addition, as an independent variable, ESG only affects 66.1% of the dependent variable of the tax payment performance.
References (22)
- Alexander, M., Doorn, N., & Priest, S. (2018). Bridging the legitimacy gap—translating theory into practical signposts for legitimate flood risk governance. Regional Environmental Change, 18 (2). https://doi.org/10.1007/s10113-017-1195-4
- Barus, AC, & Leliani. (2017). Analysis of the influencing factors that affect stock returns. Agribusiness Journal , 11 (6).
- Duque-Grisales, E., & Aguilera-Caracuel, J. (2021). Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack. Journal of Business Ethics , 168 (2). https://doi.org/10.1007/s10551-019-04177-w
- Freeman, RE, Dmytriyev, SD, & Phillips, RA (2021). Stakeholder Theory and the Resource-Based View of the Firm. Journal of Management , 47 (7). https://doi.org/10.1177/0149206321993576
- Iasha, C. (2021). Implementation of Regional Regulation Number 2 of 2018 Concerning Restaurant Tax at the Palembang City Regional Tax Management Agency (CASE STUDY OF ARTICLE 10 PARAGRAPH 1, 2, 3 AND 4). Journal of Administrative Studies , 3 (1). https://doi.org/10.47995/jian.v3i1.48
- Jamil, NA (2017). The effectiveness of implementing tax amnesty in Indonesia. Academica: Journal of Multidisciplinary Studies , 1 (1). https://doi.org/2579-9711
- Janges, ZP, & PANGESTU, IA (2021). THE EXISTENCE OF TAXES FOR NATIONAL DEVELOPMENT. SUPREMACY OF LAW , 17 (1). https://doi.org/10.33592/jsh.v17i1.1161
- Kartiko, ND (2020). TAX INCENTIVES IN RESPONSE TO THE IMPACT OF THE COVID-19 PANDEMIC ON THE TOURISM SECTOR. Journal of Taxes and State Finance (PKN) , 2 (1). https://doi.org/10.31092/jpkn.v2i1.1008
- Kivits, R., & Sawang, S. (2021). Stakeholder Analysis. In Contributions to Management Science . https://doi.org/10.1007/978-3-030-70428-5_4
- Management, M. (2019). Journal of Business Management and Entrepreneurship. Journal of Business Management and Entrepreneurship , 3 (1). https://doi.org/10.24912/jmbk.v3i1.4917
- Nasution, DAD, Erlina, E., & Muda, I. (2020). Impact of the COVID-19 Pandemic on the Indonesian Economy. Benefita Journal , 5 (2). https://doi.org/10.22216/jbe.v5i2.5313
- Nizam, E., Ng, A., Dewandaru, G., Nagayev, R., & Nkoba, MA (2019). The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector. Journal of Multinational Financial Management , 49 , 35–53. https://doi.org/10.1016/j.mulfin.2019.01.002
- Tax, DJ (2020). Tax Function Directorate General of Taxes. In Www.Pajak.Go.Id .
- Permatasari, MP, Luh, N., & Setyastrini, P. (2019). Disclosure of Corporate Social Responsibility in terms of Legitimacy Theory and Stakeholder Theory. In Journal of Accounting and Taxation (Vol. 5, Issue 1).
- Qadari, HF. &TS (2021). THE EFFECT OF ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) AND RETENTION RATIO ON STOCK RETURN WITH COMPANY VALUE AS A MODERATING VARIABLE. Juremi: Journal of Economic Research , 1 (Vol. 1 No. 2: September 2021).
- Riduan, NW, Anggrani, D., & Zainuddin. (2021). Analysis of Financial Ratios to Measure Company Financial Performance Before and During the Covid-19 Pandemic at PT Semen Indonesia Persero Tbk. Conference on Economic and Business Innovation , 1 (1).
- Riksaning Ayu, K., & Supartoko, B. (2020). Sido's Corporate Strategy Appears in the Development of Corporate Social Responsibility Activities. Information on ISKI , 3 (01). https://doi.org/10.25008/wartaiski.v3i01.47
- Sugiyono. (2017). Quantitative Research Methods, Qualitative and R&D. Alphabets. London .
- Sugiyono. (2019). Quantitative Research Methods, Qualitative, and R&D .
- Triyono B, Junarsin E, SE, MBA, P. . (2018). Analysis of the Effect of Environmental, Social and Governance Scores on Stock Return Study of Companies Listed on the Indonesia Stock Exchange for the 2010-2016 Period. Gadjah Mada University .
- Widodo, LL, Diana, N., & Mawardi, MC (2020). The Influence of Multinationality, Good Corporate Governance, Tax Haven, and Thin Capitalization on Tax Avoidance Practices in Multinational Companies Registered in Bei for the 2016-2018 Period. E-Jra , 9 (6).
- Wood, DJ, Mitchell, RK, Agle, BR, & Bryan, LM (2021). Stakeholder Identification and Salience After 20 Years: Progress, Problems, and Prospects. Business and Society , 60 (1). https://doi.org/10.1177/0007650318816522
