Tax Literacy (Educoretax) Based on Effective Tax Rate (ETR) as a Moderating Variable in the Relationship between CSR, Company Efficiency and Profitability (Study of banking companies listed on the IDX for the 2023-2024 period)

Abstract

This study aims to analyze the role of tax literacy (Educoretax) with the Effective Tax Rate (ETR) as a moderating variable in the relationship between Corporate Social Responsibility (CSR), company efficiency, and profitability in banking companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2024 period. The research employs a quantitative approach using secondary data obtained from annual financial reports of selected banking firms, with panel data regression analysis and moderation testing (Moderated Regression Analysis/MRA) to examine the interaction effects. The findings indicate that CSR and company efficiency have a significant positive effect on profitability, suggesting that socially responsible practices and efficient resource management enhance financial performance. Furthermore, ETR is proven to moderate these relationships, where a higher level of tax literacy strengthens the positive impact of CSR and efficiency on profitability, reflecting better tax planning and compliance strategies. These results highlight the importance of integrating tax literacy into corporate strategy to optimize financial outcomes and support sustainable business practices in the banking sector.