The Influence of Corporate Tax Strategy (CTS) On Consumer Reaction (Cr) With Consumer Perceived Ethicality (CPE) as A Mediating Variable Using Experimental Method
DOI:
https://doi.org/10.59141/jrssem.v4i6.776Keywords:
corporate tax strategy;, consumer reaction;, consumer perceived ethically;, mediation variablesAbstract
This study aims to examine the impact of Corporate Tax Strategies (CTSs) on consumer reactions, with Consumer Perceived Ethicality (CPE) acting as a mediating variable. Previous research on CTSs has largely focused on macro-level analyses, exploring whether aggressive tax minimization strategies lead to negative stakeholder reactions that affect company performance. However, findings on the effect of CTSs on company value remain inconclusive, with some studies reporting a negative influence and others finding no significant relationship. This research employs a quantitative approach using an experimental method to address this gap by focusing on consumer-level reactions. The methodology involves simulating scenarios to measure consumer responses to perceived ethicality in corporate tax practices. The results indicate that CTSs significantly influence consumer reactions, with CPE playing a critical mediating role. Specifically, when corporations engage in perceived unethical tax strategies, consumer trust and loyalty decline, reinforcing the importance of ethical considerations in corporate decision-making. The study concludes that incorporating ethical dimensions into tax strategies can mitigate negative consumer reactions and enhance corporate social responsibility (CSR) initiatives. These findings contribute to the literature on CSR and consumer behavior, offering practical insights for corporations aiming to align tax practices with ethical standards to foster positive consumer perceptions.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Kadarisman Hidayat, Dewi Noor Fatikhah Rokhimakhumullah, Devi Nur Cahaya Ningsih, Hefry Johan Ferdhianzah

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.