Can Tax Aggressiveness and Risk Tax Management Affect Firm Performance: Corporate Social Responsibility as a Mediating Variable

Abstract

Purpose: This study aims to examine and analyze the role of tax aggressiveness and risk tax management in influencing firm performance, with corporate social responsibility as a mediating variable.

Design/methodology/approach: This quantitative study utilizes panel data regression analysis with EViews 12 software to test the research hypotheses. The sample comprises energy sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2020–2024. A purposive sampling technique was employed to select data relevant to tax aggressiveness, risk tax management, and firm performance, while also examining the mediating role of CSR.

Findings: The results of this study demonstrate that Tax Aggressiveness has a negative effect on Corporate Social Responsibility, while the Risk Tax Management variable has no significant effect. Corporate Social Responsibility has a positive and significant effect on Firm Performance, and Corporate Social Responsibility is able to moderate the relationship between tax aggressiveness, risk tax management, and firm performance.

Practical implications: The implications of this study can enrich the literature on the relationship between Corporate Social Responsibility, tax aggressiveness, risk tax management, and firm performance.

Originality/value: This study extends the existing literature by examining the joint effects of tax aggressiveness and tax risk management on firm performance while incorporating Corporate Social Responsibility (CSR) as a mediating variable. It also provides recent empirical evidence from Indonesian energy companies during the 2020–2024 period, contributing to the understanding of taxation and corporate performance in an emerging economy.

Paper type: Empirical.