Environmental Tax Morale, Governance Signals, and Corporate Tax Aggressiveness

Amri Amrulloh; Yopie Diondy Kurniawan

doi:10.69725/jipi.v2i1.332

Authors

Amri Amrulloh Department Accounting, Politeknik Negeri Madiun, Indonesia, 63133
Yopie Diondy Kurniawan Department Accounting, Politeknik Negeri Madiun, Indonesia, 63133

DOI:

https://doi.org/10.69725/jipi.v2i1.332

Keywords:

Environmental tax morale, Corporate tax avoidance, Governance signal, Managerial ethics, Income shifting

Abstract

Purpose – This paper explores the role of civic environmental tax morale and governance signals in explaining corporate tax avoidance via managerial and organizational moral processes.

Design/methodology/approach – The work tests for direct, mediating and moderating relations within a behavioral governance model by means of structural equation modeling.

Findings – Results suggest that the strength of environmental tax morale materially declines corporate tax avoidance, mostly by the indirect methods instead of direct managerial decision. Empirical results reflect managerial tax morale, ethical tax culture and reputational risk sensitivity as core mechanisms that transform normative influence into conforming tax behavior. Governance signals tax enforcement salience, governance transparency and regulatory clarity – reinforce these moral mechanisms but their direct paths to tax avoidance are mixed. The findings also indicate that the income-shifting opportunity attenuates moral constraints by allowing firms to decouple moral intent from actual tax behavior, especially when structural flexibility is high. Taken together, the findings provide support for a multilayered governance process in which social norms and institutional signals simultaneously influence tax decisions via internalized managerial and cultural processes.

Originality/value – This contribution to tax governance literature consolidates environmental tax morale in a joint model with governance signaling and moral internalization mechanisms, thus moving beyond conventional deterrence-based accounts.

Research Implications – The findings reinforce the necessity to consider normative and behavioural elements in corporate tax research, and suggest a call for governance mechanisms that support ethical decision making beyond (reported) enforcement intensity.

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Author Biographies

Amri Amrulloh, Department Accounting, Politeknik Negeri Madiun, Indonesia, 63133

Amri Amrulloh, S.E., M.Ak., is a lecturer in the Department of Accounting at Politeknik Negeri Madiun, Indonesia. He holds a Master’s degree in Accounting and his academic interests focus on taxation, financial accounting, public sector accounting, and corporate governance. His research emphasizes behavioral aspects of taxation, tax compliance, and the role of governance and ethics in accounting practices, particularly in the context of developing economies. He has been actively involved in teaching, research, and academic community service, and contributes to applied accounting research aligned with vocational higher education and policy-relevant issues.
Yopie Diondy Kurniawan, Department Accounting, Politeknik Negeri Madiun, Indonesia, 63133

Yopie Diondy Kurniawan, S.Si., M.M. Yopie Diondy Kurniawan is a lecturer in the Department of Accounting at Politeknik Negeri Madiun, Indonesia. He earned a Bachelor’s degree in Science and a Master’s degree in Management. His scholarly interests include management accounting, financial management, performance measurement, and organizational governance. His research explores managerial decision-making, accountability systems, and the integration of management principles within accounting education and practice. He is actively engaged in academic research and teaching, with a strong orientation toward applied studies that support institutional performance and managerial effectiveness in both public and private sectors.

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