The Impact of ESG Disclosure on Corporate Tax Avoidance: Evidence from Publicly Listed Companies

Authors

  • Loso Judijanto IPOSS Jakarta
  • Irwan Irawadi Barus Universitas Dian Nusantara
  • Mega Arum Universitas Pamulang
  • Kristanti Rahman STIE Muhammadiyah Cilacap
  • Warsono Warsono STIE Muhammadiyah Cilacap

Keywords:

ESG Disclosure, Corporate Tax Avoidance, Sustainability Reporting, Stakeholder Theory, Retail Investors

Abstract

This study investigates the effect of Environmental, Social, and Governance (ESG) disclosure on corporate tax avoidance among publicly listed companies. Using a quantitative approach, data were collected from 85 retail investors through a structured questionnaire measured on a five-point Likert scale and analyzed using SPSS version 25. The results show that ESG disclosure has a significant negative effect on corporate tax avoidance, with a regression coefficient of -0.589 and a significance value of 0.000. The coefficient of determination (R²) indicates that ESG disclosure explains 35.5% of the variation in corporate tax avoidance. These findings suggest that companies with higher ESG disclosure are perceived as less likely to engage in aggressive tax avoidance practices. The results support Stakeholder Theory and Legitimacy Theory, highlighting that transparency in sustainability reporting promotes responsible corporate behavior and strengthens stakeholder trust. This study contributes to the ESG and taxation literature from the perspective of retail investors and provides practical implications for managers, regulators, and investors in fostering sustainable governance and ethical tax practices.

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Published

2026-06-30

How to Cite

Judijanto, L., Barus, I. I., Arum, M., Rahman, K., & Warsono, W. (2026). The Impact of ESG Disclosure on Corporate Tax Avoidance: Evidence from Publicly Listed Companies. Review of Taxation and Public Finance, 1(1), 11–19. Retrieved from https://badrionpress.com/index.php/rtpf/article/view/21

Issue

Vol. 1 No. 1 (2026): Review of Taxation and Public Finance

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Articles

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Copyright (c) 2026 Loso Judijanto, Irwan Irawadi Barus, Mega Arum, Kristanti Rahman, Warsono Warsono

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