The effect of tax aggressiveness, violation regulation of FSA, and foreign ownership on CSR disclosure

DOI

10.2991/icmemm-18.2019.23How to use a DOI?

Keywords

legitimacy theory, tax aggressiveness, foreign ownership, CSR

Abstract

Legitimacy theory considers that the company can be maintaining its existence by gaining legitimacy from stakeholders to comply with regulations and norms in the area of operation. This research aims to analyze the effect of tax aggressiveness, violation regulation of Financial Services Authority (FSA), and foreign ownership on Corporate Social Responsibility (CSR) disclosure. The sample of research consists of 52 companies listed in Indonesia Stock Exchange (BEI). The research data use annual financial statement during the period 2011-2014 collected from Indonesia Capital Exchange (IDX). The analysis technique of data uses multiple linear regression. The empirical results find that tax aggressiveness and violation regulation of financial services authority are not the determinants of CSR disclosure, while foreign ownership has positive affect on Corporate Social Responsibility disclosure. Multinational companies will be more concerned with fulfilling the information needs of stakeholders to produce broader CSR disclosure. In addition, transfer of culture in the presence of foreign ownership can contribute to CSR disclosure. Although the phenomenon in this study was not able to corroborate the legitimacy theory in the context of CSR, it can be explained by using stakeholder theory

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zoel Dirga Dinhi
AU  - Abdul Hamid Habbe
AU  - Yohanis Rura
PY  - 2019/03
DA  - 2019/03
TI  - The effect of tax aggressiveness, violation regulation of FSA, and foreign ownership on CSR disclosure
BT  - Proceedings of the First International Conference on Materials Engineering and Management - Management Section (ICMEMm 2018)
PB  - Atlantis Press
SP  - 112
EP  - 115
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmemm-18.2019.23
DO  - 10.2991/icmemm-18.2019.23
ID  - Dinhi2019/03
ER  -