SUSTAINABILITY AND TAX INCENTIVES
This study examines the link between sustainability practices and tax incentives for Indonesian firms by analyzing Bloomberg data from 2013 to 2022. It assesses sustainability through the Sustainability Growth Rate (SGR) and disclosures in the Environmental, Social, and Governance (ESG) domains, wh...
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| Format: | Article |
| Language: | Indonesian |
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Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya
2024-12-01
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| Series: | Ekuitas: Jurnal Ekonomi dan Keuangan |
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| Online Access: | https://ejournal.stiesia.ac.id/ekuitas/article/view/6844 |
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| _version_ | 1832589755017068544 |
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| author | Valentine Siagian Nensy Dwi Putri Sinaga |
| author_facet | Valentine Siagian Nensy Dwi Putri Sinaga |
| author_sort | Valentine Siagian |
| collection | DOAJ |
| description |
This study examines the link between sustainability practices and tax incentives for Indonesian firms by analyzing Bloomberg data from 2013 to 2022. It assesses sustainability through the Sustainability Growth Rate (SGR) and disclosures in the Environmental, Social, and Governance (ESG) domains, while tax incentives are measured by the Effective Tax Rate (ETR). A fixed-effects regression model controls firm-specific factors, revealing that a higher SGR significantly correlates with reduced tax liabilities. This study also suggests that firms with substantial sustainability growth are able to gain tax benefits. However, ESG disclosures alone do not significantly impact the ETR. Its robust sustainability practices have led to tax advantages rather than mere disclosure in Indonesia. Furthermore, this research contributes to the existing literature by highlighting the distinct impacts of various sustainability measures on financial outcomes, particularly in developing countries. They overview the importance of comprehensive sustainability strategies incorporating real growth in initiatives for achieving ethical and financial outcomes. This research also addresses critical insights for policymakers and business leaders in response to the emerging markets around developing countries.
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| format | Article |
| id | doaj-art-2fcb94a555264936acd9d4dc0d7ee836 |
| institution | Kabale University |
| issn | 2548-298X 2548-5024 |
| language | Indonesian |
| publishDate | 2024-12-01 |
| publisher | Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya |
| record_format | Article |
| series | Ekuitas: Jurnal Ekonomi dan Keuangan |
| spelling | doaj-art-2fcb94a555264936acd9d4dc0d7ee8362025-01-24T08:26:04ZindSekolah Tinggi Ilmu Ekonomi Indonesia SurabayaEkuitas: Jurnal Ekonomi dan Keuangan2548-298X2548-50242024-12-018410.24034/j25485024.y2024.v8.i4.6844SUSTAINABILITY AND TAX INCENTIVESValentine Siagian0Nensy Dwi Putri Sinaga1Universitas Advent IndonesiaSouthwestern University of Finance and Economics This study examines the link between sustainability practices and tax incentives for Indonesian firms by analyzing Bloomberg data from 2013 to 2022. It assesses sustainability through the Sustainability Growth Rate (SGR) and disclosures in the Environmental, Social, and Governance (ESG) domains, while tax incentives are measured by the Effective Tax Rate (ETR). A fixed-effects regression model controls firm-specific factors, revealing that a higher SGR significantly correlates with reduced tax liabilities. This study also suggests that firms with substantial sustainability growth are able to gain tax benefits. However, ESG disclosures alone do not significantly impact the ETR. Its robust sustainability practices have led to tax advantages rather than mere disclosure in Indonesia. Furthermore, this research contributes to the existing literature by highlighting the distinct impacts of various sustainability measures on financial outcomes, particularly in developing countries. They overview the importance of comprehensive sustainability strategies incorporating real growth in initiatives for achieving ethical and financial outcomes. This research also addresses critical insights for policymakers and business leaders in response to the emerging markets around developing countries. https://ejournal.stiesia.ac.id/ekuitas/article/view/6844Sustainability Growth RateESGTax IncentiveIndonesia Stock Exchange |
| spellingShingle | Valentine Siagian Nensy Dwi Putri Sinaga SUSTAINABILITY AND TAX INCENTIVES Ekuitas: Jurnal Ekonomi dan Keuangan Sustainability Growth Rate ESG Tax Incentive Indonesia Stock Exchange |
| title | SUSTAINABILITY AND TAX INCENTIVES |
| title_full | SUSTAINABILITY AND TAX INCENTIVES |
| title_fullStr | SUSTAINABILITY AND TAX INCENTIVES |
| title_full_unstemmed | SUSTAINABILITY AND TAX INCENTIVES |
| title_short | SUSTAINABILITY AND TAX INCENTIVES |
| title_sort | sustainability and tax incentives |
| topic | Sustainability Growth Rate ESG Tax Incentive Indonesia Stock Exchange |
| url | https://ejournal.stiesia.ac.id/ekuitas/article/view/6844 |
| work_keys_str_mv | AT valentinesiagian sustainabilityandtaxincentives AT nensydwiputrisinaga sustainabilityandtaxincentives |