The Role of Environmental Disclosure in Tax Avoidance
DOI:
https://doi.org/10.38035/sijdb.v4i1.382Keywords:
Green Accounting, Stakeholder Pressure, Environmental Disclosure, Carbon Tax AvoidanceAbstract
This study analyzes the relationship between green accounting, stakeholder pressure, environmental disclosure, and carbon tax avoidance using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) approach via SmartPLS software. The research data were obtained through the distribution of a structured questionnaire to 280 companies from various industrial sectors in Indonesia. The analysis was conducted in two stages: testing the measurement model to ensure construct reliability and validity, and testing the structural model to evaluate direct, indirect, and mediating effects using the bootstrapping technique with 5,000 resamples. The results of the study show that green accounting and stakeholder pressure influence environmental disclosure, underscoring the importance of these two factors in enhancing corporate transparency. Environmental disclosure was found to have a negative effect on carbon tax avoidance, indicating that higher levels of transparency can reduce companies’ opportunistic behavior in carbon tax avoidance. However, green accounting does not have a direct effect on carbon tax avoidance; rather, it exerts an indirect influence through the mediating effect of environmental disclosure. Conversely, stakeholder pressure has a direct effect on carbon tax avoidance without going through a mediating mechanism. These findings enrich the sustainability accounting literature by integrating internal accounting practices and external stakeholder dynamics in explaining corporate tax compliance behavior.
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