Do CEO Characteristics Matter? Evidence on Sustainability Reporting and Tax Avoidance from Indonesian Listed Companies in The SRI-KEHATI Index

<ns3:p>Background This study aims to analyze the effect of CEO characteristics on sustainability reports and tax avoidance, as well as to examine the effect of sustainability reports as a mediating variable. The focus of this study is on companies with relatively homogeneous sustainability commitments in order to gain an understanding of the effect of CEO characteristics on company policy. Methods The study uses panel data from the sustainability reports and annual reports of 25 companies listed on the SRI KEHATI Index during the period 2018–2024, with a total of 172 observations. Sustainability reports are proxied using the Global Reporting Initiative (GRI) Index, CEO characteristics are measured through education, age, and tenure, while tax avoidance is measured using the effective tax rate. The analysis was conducted using panel data regression with Eviews 13, incorporating company control variables. Results The results show that CEO education has a significant effect on sustainability report disclosure, while CEO age and tenure do not have a significant effect. In addition, CEO age and tenure are proven to affect the level of corporate tax avoidance. However, sustainability reports do not act as a mediating variable in the relationship between CEO characteristics and tax avoidance. Conclusions These findings indicate that CEO characteristics have different influences on corporate sustainability and taxation policies. CEO education can influence corporate strategic decisions related to sustainability disclosure, while CEO age and tenure are more closely related to tax avoidance strategies. However, sustainability report disclosure has not been proven to be a mediating mechanism between CEO characteristics and tax avoidance practices.</ns3:p>