Title:
The Influence of Financial Performance on Tax Avoidance: Green Accounting as a Moderating Variable

Authors:
Abriyani Puspaningsih* Anisa Vega Nur Azizah, Indonesia

Abstract:

This study aims to analyze the effect of financial performance on tax avoidance, using green accounting as a moderating variable. The implementation of green accounting is increasingly important in the business world, as it increases transparency and corporate responsibility for environmental impacts. The study was conducted on basic materials manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2019–2023 period. The data obtained were analyzed using multiple regression methods. The results show that liquidity has a positive effect on tax avoidance. Meanwhile, profitability has a negative effect on tax avoidance. Solvency has no effect on tax avoidance. In the moderation analysis, green accounting was shown to weaken the relationship between liquidity and tax avoidance. Green accounting was also shown to weaken the relationship between profitability and tax avoidance. However, green accounting did not moderate the relationship between solvency and tax avoidance. This study has implications that companies can utilize the results of this study to develop more responsible financial strategies oriented towards optimal tax compliance. Furthermore, the implementation of Green Accounting can also enhance the company's reputation. For regulators, the results of this study can serve as a basis for designing more effective tax policies, including incentives for companies that implement Green Accounting.

DOI: https://doi.org/10.51505/IJEBMR.2026.10402