Financial Literacy: Its Paradoxical Effect on MSME Financial Management in the Digital Era

Sat, 25 Jul 2026 00:00:00 +0700

Purpose: This study investigates the effects of financial literacy and financial technology (e-wallet usage) on the financial management practices of micro, small, and medium enterprises (MSMEs) in Palu City.

Method: A quantitative research design was employed using primary data collected through questionnaires administered to MSME owners. The proposed relationships were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM) with WarpPLS.

Findings: The results indicate that financial literacy significantly influences MSME financial management. However, higher levels of financial knowledge do not automatically translate into more effective financial management practices. In contrast, e-wallet usage exhibits a positive but statistically insignificant effect, suggesting that digital payment adoption alone is insufficient to improve financial management. These findings reveal a persistent gap between financial capability, technology adoption, and the practical implementation of sound financial management.

Practical Implications: Policymakers should complement financial literacy and digitalization initiatives with practical training that strengthens MSMEs' ability to integrate financial knowledge and digital technologies into everyday financial decision-making.

Originality: This study extends the MSME finance literature by simultaneously examining financial literacy and e-wallet adoption within an emerging economy context, demonstrating that digital financial technology does not necessarily enhance financial management unless supported by adequate financial capability and effective managerial application.

The Influence of Corporate Social Responsibility on Tax Avoidance among Manufacturing Companies Listed on the Indonesia Stock Exchange for the Period 2020–2023

Tiara Shava Tasya Ol Kau — Fri, 26 Jun 2026 00:00:00 +0700

Purpose: This study aims to examine the effect of Corporate Social Responsibility (CSR) disclosure on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2020–2023. This study is grounded in stakeholder theory and legitimacy theory, which suggest that CSR disclosure reflects corporate responsibility and may influence tax-related behavior.

Research Method: This study used a quantitative approach, drawing on secondary data from the annual and sustainability reports of 45 manufacturing companies, yielding 180 firm-year observations selected through purposive sampling. CSR disclosure was measured using the CSR Index (CSRI) based on GRI Standards, while tax avoidance was proxied by the Effective Tax Rate (ETR). The hypothesis was tested using a panel data regression with the Fixed-Effects Model.

Results and Discussion: The findings show that CSR disclosure has a significant negative effect on tax avoidance. Companies with higher CSR disclosure tend to have higher ETR values, indicating lower tax avoidance. This result suggests that CSR disclosure is associated with stronger tax compliance and supports stakeholder and legitimacy theories in explaining corporate tax practices.

Implications: This study provides practical implications for regulators, investors, and stakeholders by showing that CSR disclosure may signal corporate tax behavior. It also encourages companies to strengthen CSR as part of responsible corporate governance.

Originality: This study provides empirical evidence on the relationship between CSR disclosure and tax avoidance in Indonesian manufacturing companies during the post-pandemic period.

Advances in Taxation Research

Financial Literacy: Its Paradoxical Effect on MSME Financial Management in the Digital Era

The Influence of Corporate Social Responsibility on Tax Avoidance among Manufacturing Companies Listed on the Indonesia Stock Exchange for the Period 2020–2023