The Effect of Women’s Role on Board, ESG Performance, and Tax Avoidance

• Published in: Society (Bangka. Online) Vol. 12; no. 1; pp. 61 - 73
• Main Authors: Sambuaga, Elfina Astrella, Felicia, Donia
• Format: Journal Article
• Language: English
• Published: Laboratorium Rekayasa Sosial, Jurusan Sosiologi, FISIP Universitas Bangka Belitung 31-10-2024
• Subjects: Board Gender Diversity; Corporate Governance; ESG Performance; Indonesia Stock Exchange (IDX); Stakeholder Theory; Sustainability Reporting
• ISSN: 2338-6932; 2597-4874
• DOI: 10.33019/society.v12i1.651

This research examines the impact of board gender diversity on tax avoidance, with ESG performance as an intervening variable. Using 87 non-financial companies listed on the Indonesia Stock Exchange (IDX) with ESG scores from Thomson-Reuters ASSET4 during the 2017-2019 period, the study reveals that board gender diversity significantly influences tax avoidance, indicating that diversity does not improve tax compliance. The male-dominated boards in Indonesia limit the effectiveness of monitoring corporate activities, including tax avoidance. Additionally, gender diversity negatively affects ESG performance, suggesting that the small number of women on boards diminishes efforts to enhance sustainability. ESG performance does not mediate the relationship between gender diversity and tax avoidance, though it can reduce tax avoidance when transparency in ESG reporting is increased. Limitations include a small sample size and data restricted to the 2017-2019. Future studies could explore alternative tax avoidance measures and other corporate governance factors.
Penelitian ini bertujuan untuk menguji pengaruh keberagaman gender dewan terhadap penghindaran pajak dengan kinerja ESG sebagai variabel intervening. Penelitian menggunakan metode purposive sampling dan teknik pengumpulan data sekunder yang diperoleh dari S&P Capital IQ, website Bursa Efek Indonesia, website resmi perseroan, dan Thomson Reuters ASSET4. Sampel penelitian yang digunakan adalah perusahaan yang terdaftar di Bursa Efek Indonesia dan memiliki skor ESG dari Database Thomson-Reuters ASSET4 tahun 2017-2019. Hasil penelitian ini adalah keberagaman gender dewan berpengaruh positif terhadap penghindaran pajak, keberagaman gender dewan berpengaruh negatif terhadap kinerja ESG, dan kinerja ESG tidak dapat memediasi hubungan antara keberagaman gender dewan dengan penghindaran pajak. Oleh karena itu, jumlah observasi dalam penelitian ini adalah 87 observasi.