The Effect of Accounting Conservatism and Cost of Debt on Tax Avoidance with CSR as a Moderation Variable

Abstract

This study examines the impact of accounting conservatism and the cost of debt on corporate tax avoidance, with Corporate Social Responsibility (CSR) considered as a moderating factor. The research is based on secondary data obtained from annual and sustainability disclosures of firms operating in the energy sector and listed under the IDX-IC classification on the Indonesia Stock Exchange. A purposive sampling technique was employed, yielding 105 firm-year observations from 35 companies spanning the 2021–2023 period. The analytical framework employed is moderated regression analysis. The findings reveal that accounting conservatism plays a significant role in influencing tax avoidance behavior, whereas the cost of debt does not demonstrate a measurable impact. Additionally, CSR effectively strengthens the link between accounting conservatism and tax avoidance, but fails to moderate the relationship between the cost of debt and tax avoidance.