Is Tax Aggressiveness Affected Corporate Social Responsibility Disclosure? A Meta-Analytical Review

Abstract

The aim of this research is to look at the robustness of the relationship between corporate social responsibility (CSR) and aggressive tax avoidance activities using a meta-analysis approach. A meta-analysis approach is an approach that operates by using the previous article within a specified period that has the same topic and has the same or different results. Theoretically, the more a company carries out its social responsibilities; it will have an impact on tax activities per the rules. The results showed that the higher the value of corporate social responsibility disclosures, the lower the tax aggressiveness. After synthesizing a total of 29 results from articles published between 2015 and 2019 in Indonesia and Malaysia, we consistently found that companies that practice social responsibility have a significant impact on tax aspects, particularly by reducing the incidence of tax fraud. The research approach chosen is a meta-analysis using only Indonesian and Malaysian samples; the results of the study may not be generalized. Therefore, researchers are encouraged to test within a wider research area. This research provides results that reinforce the negative relationship between CSR and tax aggressiveness. This research has provided input into the fields of accounting and taxation by giving confidence in the relationship between aggressive tax behavior and the existence of disclosures of social responsibility.