Is Corporate Social Responsibility Related to Corporate Tax Avoidance? Evidence from a Natural Experiment

2020 ◽  
Author(s):  
Michael Mayberry ◽  
Luke Watson
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Natural Experiment ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Corporate Social

The impact of ownership structure on corporate tax avoidance with corporate social responsibility as mediating variable

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anissa Dakhli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Corporate Tax ◽  
Data Set ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the direct and indirect relationship between institutional ownership and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable. Design/methodology/approach This study uses panel data set of 200 French firms listed during the 2007–2018 period. The direct and indirect effects between managerial ownership and tax avoidance were tested by using structural equation model analysis. Findings The results indicate that institutional ownership negatively affects tax avoidance. The greater the proportion of the institutional ownership, the lower the likelihood of tax avoidance usage. From the result of the Sobel test, this study indicated that CSR partially mediates the effect of institutional ownership on corporate tax avoidance. Practical implications The findings have some policy and practical implications that may help regulators in improving the quality of transactions and in achieving more efficient market supervision. They recommend to the government to add regulations and restrictions to the structure of corporate ownership to control corporate tax avoidance in French companies. Originality/value This study extends the existing literature by examining both the direct and indirect effect of institutional ownership on corporate tax avoidance in French companies by including CSR as a mediating variable.

scholarly journals Does Corporate Social Responsibility Influence Corporate Tax Avoidance of Chinese Listed Companies?

2018 ◽  
Vol 10 (12) ◽  
pp. 4549 ◽  
Author(s):  
M.A. Gulzar ◽  
Jacob Cherian ◽  
Muhammad Sial ◽  
Alina Badulescu ◽  
Phung Thu ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Primary Objective ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Chinese Listed Companies ◽  
Corporate Social

The primary objective of this paper is to empirically examine whether corporate social responsibility (CSR) influences corporate tax avoidance (CTA) of Chinese listed companies. The study is based on a sample of 3481 firm-year observations from 2009 to 2015 using CSR ratings from the Rankins (RKS) corporate social responsibility ratings agency in China, and all financial data extracted from the China Stock Market and Accounting Research (CSMAR). The authors foundthat CSR is negatively related to the current and cash effective tax rate (proxies of corporate tax avoidance), suggesting that responsible firms are more involved in tax avoidance as compared to less responsible firms. Their findings are robust against different control variables. Additionally, to the best of the authors’ knowledge, the paper is one of the first to document an empirical association between CSR and corporate tax avoidance of Chinese listed companies.

scholarly journals Corporate Social Responsibility and Corporate Tax Aggressiveness: A Scientometric Analysis of the Existing Literature to Map the Future

2021 ◽  
Vol 13 (11) ◽  
pp. 6225
Author(s):  
Osman Issah ◽  
Lúcia Lima Rodrigues
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Developing Economies ◽  
Tax Avoidance ◽  
The Body ◽  
Future Research ◽  
Scientometric Analysis ◽  
Corporate Tax ◽  
Tax Aggressiveness ◽  
Corporate Social

Using data from 2003 to 2020, this study uses a scientometric approach to investigate the nexus between Corporate Social Responsibility (CSR) and corporate tax aggressiveness research. The objective is to identify under-explored regions, variables, citation patterns, theories, and unexplored topics in the body of knowledge to establish trends in publications on issues about corporate social responsibility and corporate tax aggressiveness. In addition, the study also considers publication journal areas of focus. Research linking CSR and tax avoidance using VOSviewer and triangulating with CiteSpace, by way of approach, is not found in the literature. The findings suggest that CSR and corporate tax aggressiveness researchers do not use far-reaching relevant theories and applicable findings from studies beyond their clusters. Another finding is that African countries remain under-explored due to the absence of institutional representation and an adequate number of investigators regarding CSR and corporate tax aggressiveness research. Finally, the study reveals a number of research topics to be explored. Governments, particularly in developing economies, should create policies that define taxes as part of an entity’s CSR narrative to enhance transparency and legitimacy. In addition, the study is of immense significance to master and PhD students since it provides an agenda for future research.

scholarly journals A Theoretical Review on Corporate Tax Avoidance: Shareholder Approach versus Stakeholder Approach

2019 ◽  
Vol 4 (3) ◽  
pp. 82-88
Author(s):  
Nirmala Devi Mohanadas ◽  
Abdullah Sallehhuddin Abdullah Salim ◽  
Suganthi Ramasamy
Keyword(s):  
Corporate Social Responsibility ◽  
Theoretical Analysis ◽  
Social Responsibility ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Tax Avoidance ◽  
Legitimacy Theory ◽  
Corporate Tax ◽  
Stakeholder Approach ◽  
Corporate Social

Objective - Although corporate tax avoidance is a widely discussed topic in the literature, conflicts do emerge when it is analyzed through the context of primary corporate duty. Should companies, in managing their taxes, solely honor their obligation to increase shareholders' wealth or should they cater to the interests of all their stakeholders? Such conflicts are especially evident in the inconsistent empirical observations on how corporate tax avoidance relate to corporate social responsibility (CSR), which makes the dearth of theoretical analysis on this issue even more conspicuous. Taking into account the socio-political nature and human elements in corporate tax avoidance, theoretical analyses from social sciences' perspectives are becoming markedly crucial. Methodology/Technique – This paper critically reviews the extant literature for discussions on how corporate tax avoidance is influenced by the dissenting approaches towards primary corporate duty. Findings – By allowing an insight into how people act and the world they live in, these analyses form a constructive tool to rationalize and foretell managerial actions towards shareholders and stakeholders alike. Novelty – It focuses particularly on the theories that are widely used to lend supports for such approaches. These theories are the agency theory, stakeholder theory, and legitimacy theory. Type of Paper - Review. Keywords: Corporate Tax Avoidance; Corporate Social Responsibility (CSR); Theoretical Analysis; Shareholder Approach; Stakeholder Approach; Agency Theory; Stakeholder Theory; Legitimacy Theory. JEL Classification: G30, G32, G39.

Do women on corporate boardrooms have an impact on tax avoidance? The mediating role of corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anissa Dakhli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Gender Diversity ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Content Type ◽  
Board Gender Diversity ◽  
Indirect Relationship ◽  
Corporate Social ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the direct and indirect relationship between board gender diversity and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable. Design/methodology/approach This study uses a panel dataset of 200 French firms listed during 2007–2018 period. The direct and indirect effects between board gender diversity (BGD) and tax avoidance were tested by using structural equation model analysis. Findings The results indicate that the presence of women on corporate boardrooms negatively affects tax avoidance. The greater the proportion of women in boards, the lower the likelihood of tax avoidance practice. In the mediation test, CSR appears to partially mediate the link between women on boards and corporate tax avoidance. Additional analysis shows that the social dimension of CSR produces this mediating effect. Practical implications The results have practical implications for companies in regulating the composition of their boards. To benefit from diversity, firms have to increase women‘s percentage in their boards of directors. Also, investors are encouraged to pay attention to the percentage of female directors when investing and purchasing shares. Social implications This study proved empirically that the higher proportion of female directors significantly reduces the possibility of tax avoidance either directly or indirectly through enhancing CSR performance. The findings show that firms with gender diversified boards are more likely to get involved in CSR for hedging against the potential consequences of aggressive tax avoidance practices. In light of the above results, firms are well-advised to strongly apply the policy encouraging or mandating women as board members to take advantage of their expected benefits. Originality/value The originality of this paper consists in proposing the establishment of both direct and indirect relationships between BGD and corporate tax avoidance through CSR. Unlike prior studies that have been examining the direct relationship between corporate governance mechanisms and corporate tax avoidance, this study went further to investigate the indirect relationship between these two constructs. This study also differs from prior studies as it examines the effect of BGD on each of constituting pillars of CSR, namely, environmental, social and governance. To date, an extensive part of CSR research has used the combined score of CSR, but the effects on different CSR pillars remain little investigated.

Corporate Tax Avoidance : Mekanisme Corporate Governance Dan Corporate Social Responsibility Pada Perusahaan Manufaktur Sektor Industri Dasar Dan Kimia Di Indonesia

IJAcc ◽  
2020 ◽  
Vol 1 (2) ◽  
pp. 140-163
Author(s):  
Dadan Ramdhani ◽  
Sriyani Sriyani ◽  
Mardiana Mardiana
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Purposive Sampling ◽  
Corporate Social

Penelitian ini mengenai Pengaruh mekanisme corporate governance dan corporate social responsibility terhadap corporate tax avoidance pada perusahaan. Tujuan dari penelitian ini adalah untuk menguji pengaruh pengaruh mekanisme corporate governance dengan menggunakan indikator variabel kepemilikan institusional, komisaris independen, komite audit dan kepemilikan manajerial dan corporate social responsibility terhadap corporate tax avoidance, studi empitis pada perusahaan industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia pada tahun 2014-2018. Metode penelitian yang digunakan adalah metode penelitian kuantitati. Penentuan sampel pada penelitian ini adalah dengan teknik purposive sampling, sehingga diperoleh sampel penelitian 30 perusahaan dengan total 150 (30x5tahun) observasi yang sesuai dengan karakteristik yang ditentukan. Teknik analisis data yang digunakan dalam penelitian ini adalah analisis regresi linear berganda. yang dilakukan menggunakan bantuan software IBM SPSS 23.0. Hasil peneltian ini adalah kepemilikan institusional, komite audit dan kepemilikan manajerial berpengaruh positif terhadap corporate tax avoidance. Komisaris independen tidak berpengaruh terhadap corporate tax avoidance. Dan corporate social responsibility berpengaruh negatife terhadap corporate tax avoidance.

scholarly journals Corporate Tax Avoidance: Kontribusi Mekanisme Corporate Governance dan Corporate Social Responsibility Pada Perusahaan Industri Manufaktur Sektor Industri Dasar dan Kimia yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2018

2020 ◽  
Vol 2 (2) ◽  
pp. 109-132
Author(s):  
Ai Hendrani ◽  
Dadan Ramdhani ◽  
Thika Febriani ◽  
Sriyani Sriyani
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Purposive Sampling ◽  
Corporate Social

Tujuan dari penelitian ini adalah untuk menguji pengaruh pengaruh mekanisme corporate governance dengan menggunakan indikator variabel kepemilikan institusional, komisaris independen, komite audit dan kepemilikan manajerial dan corporate social responsibility terhadap corporate tax avoidance, studi empitis pada perusahaan industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia pada tahun 2014-2018. Metode penelitian yang digunakan adalah metode penelitian kuantitati. Penentuan sampel pada penelitian ini adalah dengan teknik purposive sampling, sehingga diperoleh sampel penelitian 30 perusahaan dengan total 150 (30x5tahun) observasi yang sesuai dengan karakteristik yang ditentukan. Teknik analisis data yang digunakan dalam penelitian ini adalah analisis regresi linear berganda. yang dilakukan menggunakan bantuan software IBM SPSS 23.0. Hasil peneltian ini adalah kepemilikan institusional, komite audit dan kepemilikan manajerial berpengaruh positif terhadap corporate tax avoidance. Komisaris independen tidak berpengaruh terhadap corporate tax avoidance. Dan corporate social responsibility berpengaruh negatife terhadap corporate tax avoidance.

Is Corporate Social Responsibility Related to Corporate Tax Avoidance? Evidence from a Natural Experiment

2020 ◽  
Author(s):  
Michael A Mayberry ◽  
Luke Watson
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research Question ◽  
Tax Avoidance ◽  
Third Party ◽  
Corporate Tax ◽  
Exogenous Shocks ◽  
Corporate Social ◽  
Rule Out ◽  
Identification Strategy

We employ states' enactment of constituency statutes as plausibly exogenous shocks to the marginal cost of corporate social responsibility (CSR) and examine the relation between CSRand corporate tax avoidance. We find almost no evidence of an association between the enactment of constituency statutes and tax avoidance. We use confidence intervals and other analysis to rule out low power as an explanation. Using an instrumental variables design, we find evidence that third-party CSR scores increase following constituency statutes, yet without a detectable impact on tax avoidance. The lack of results across multiple proxies and specifications suggests firms decouple CSR from tax policy. Our study introduces a strong identification strategy common in management research to the accounting literature, producing a novel noresult finding on a popular research question.

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