Tax Management in the Energy Sector: CSR Disclosure as Moderator and Profitability as Mediator in the Governance-Finance Nexus (International Journal of Accounting Management Economics and Social Sciences (IJAMESC))

Summary

• The study covers 15 energy companies listed on the Indonesia Stock Exchange, selected from a population of 91, yielding 60 observations for 2021 to 2024.p.1
• Institutional ownership has a significant negative effect on ETR (β = −1.230, p = 0.000), while independent commissioners have a significant positive effect (β = 1.294, p = 0.014).p.1
• CSR disclosure strengthened the relationship between institutional ownership and ETR (β = 1.137, p = 0.004).p.1
• The average effective tax rate was approximately 27.06 percent.p.15
• The Adaro Energy transfer-pricing case cost the state approximately US$125 million in taxes, roughly US$14 million each year, from 2009 to 2017.p.2
• The 22 percent corporate tax rate has applied from the 2022 tax year to the present.p.2
• The F-test gives an F-statistic of 4.667538 with a probability of 0.000252.p.17

Key insights

1. Leverage has no significant effect on ETR (B = −0.042; p = 0.648).p.21
2. Capital intensity has no significant direct effect on ETR (B = 0.237; p = 0.418).p.21
3. CSR disclosure negatively moderates the effect of independent commissioners on ETR (B = −1.644; p = 0.015).p.22
4. CSR disclosure does not moderate the effect of leverage on ETR (B = 0.084; p = 0.493).p.22
5. Profitability (ROA) mediates the effect of capital intensity on ETR, with a Sobel t-statistic of 2.33 and p-value of 0.0196.p.20
6. Profitability does not mediate the effect of independent commissioners on ETR (t = 0.28; p = 0.779).p.23
7. Profitability does not mediate the effect of leverage on ETR (t = 0.53; p = 0.592).p.23