Corporate Social Responsibility, Profitability, and Firm Size as Determinants of Firm Value: Evidence from Manufacturing Companies Listed on the Indonesia Stock Exchange with Tax Avoidance as a Mediating Variable (2020–2024)

Abstract

This study examines the effect of Corporate Social Responsibility (CSR), profitability, and firm size on firm value with tax avoidance as a mediating variable. The study employs a quantitative approach using secondary data collected from manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. A purposive sampling technique was applied, resulting in 110 companies and 550 firm-year observations. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings reveal that CSR has a positive and significant effect on firm value and tax avoidance. Tax avoidance also significantly influences firm value. Furthermore, tax avoidance mediates the relationship between CSR and firm value as well as between profitability and firm value. However, profitability and firm size do not significantly affect firm value, while firm size does not significantly affect tax avoidance. The results suggest that CSR practices contribute to enhancing company value both directly and indirectly through responsible tax management. This study contributes to the literature on corporate sustainability, taxation strategy, and firm valuation in emerging markets.