Tax Avoidance: CSR and Capital Intensity with Firm Size as a Moderating Variable

Muhammad Nugraha Agengsriwardana; Dwi Septa Aryani; Sasiska Rani; Kusminaini Armin

doi:10.37075/FABA.2025.2.02

Authors

Muhammad Nugraha Agengsriwardana Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia https://orcid.org/0009-0003-3856-4135
Dwi Septa Aryani Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia https://orcid.org/0009-0006-2794-605X
Sasiska Rani Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia https://orcid.org/0000-0002-8859-8363
Kusminaini Armin Faculty of Economics and Business, Tridinanti University, Palembang, Indonesia https://orcid.org/0009-0001-3313-8108

DOI:

https://doi.org/10.37075/FABA.2025.2.02

Keywords:

Tax Avoidance, Corporate Social Responsibility, Capital Intensity, Firm Size

Abstract

Purpose: This study aims to analyze the effect of Corporate Social Responsibility and Capital Intensity on Tax Avoidance, moderated by Firm Size, in energy sector companies listed on the Indonesia Stock Exchange for the 2021–2023 period.

Design/Methodology/Approach: The research population consists of 87 companies, and using the purposive sampling method, 18 companies were selected as samples. The research method employed is Moderated Regression Analysis.

Findings: The results of this study indicate that Corporate Social Responsibility affects Tax Avoidance, while Capital Intensity does not affect Tax Avoidance. Firm Size is unable to moderate the effect of Corporate Social Responsibility and Capital Intensity on Tax Avoidance.

Practical Implications: This study provides valuable insights for companies, especially in the energy sector, regarding the relationship between Corporate Social Responsibility (CSR), capital intensity, and tax avoidance. The findings suggest that CSR activities can significantly influence tax avoidance practices, highlighting the importance of incorporating social responsibility into corporate strategies to build public trust and minimize reputational risks associated with aggressive tax planning.

Originality/Value: This study provides a unique focus on the energy sector, which is highly regulated and scrutinized for its environmental and economic impacts. It explores firm size as a moderating variable, offering new insights into whether firm size influences the relationship between CSR, capital intensity, and tax avoidance. These findings enhance our understanding of how various internal and external factors of firms interact to shape tax decisions, particularly in an industry that is critical to national development and global sustainability.

Paper Type: Research Paper.

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References

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