scholarly journals The Effect of ESG Performance on Tax Avoidance—Evidence from Korea

2021 ◽  
Vol 13 (12) ◽  
pp. 6729
Author(s):  
Bo-Hyun Yoon ◽  
Jeong-Hwan Lee ◽  
Jin-Hyung Cho
Keyword(s):  
Corporate Governance ◽  
Financial Market ◽  
Corporate Culture ◽  
Negative Relationship ◽  
Tax Avoidance ◽  
Sample Period ◽  
Socially Responsible ◽  
Culture Theory ◽  
Income Difference

We analyzed whether a firm’s engagement in socially responsible activities, as measured by environmental, social, and corporate governance (ESG) scores, influences their tendency to avoid tax in the Korean financial market. We found a negative relationship between Korean firms’ ESG scores and tax avoidance in terms of book-tax income difference during the sample period between 2011 and 2017. This result implies that firms with good CSR performance would tend not to manipulate taxable profits, which is in line with corporate culture theory. More interestingly, this trend has become more apparent for chaebol-affiliated firms, a special type of Korean conglomerate, than non-chaebol firms.

scholarly journals Literature Review on the Association between Earnings Management and Corporate Social Responsibility

2020 ◽  
Vol 5 (1) ◽  
pp. 22-31
Author(s):  
Ruksana Parvin ◽  
Md. Sohel Rana ◽  
Shahpar Shams
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Firm Value ◽  
Ethical Issues ◽  
Negative Relationship ◽  
Tax Avoidance ◽  
Socially Responsible ◽  
Corporate Governance Practice ◽  
Corporate Social

This paper aims to give an overview of the existing literature on the Earnings Management (EM) and Corporate Social Responsibility (CSR) relationship in different countries. This paper reviews preceding studies concerned about EM, CSR and their relationship. Out of 23 works of literature, 11 studies found a negative relationship, 6 studies found a positive relationship, 2 studies found blended relationships in case of different situations and 4 studies found no connection between CSR and EM. Most of the results demonstrated that probably the socially responsible organizations have a negative correlation with EM practice. The types of the relationship depend on cause-effect relationship, information asymmetry, how can a company use resources, awareness on environmental issues, awareness on ethical issues, tax avoidance tendency, corporate governance practice, nature of the firm, political environment, opportunistic incentive, and stakeholder capital, manager's psychology, etc. Relationships between EM and CSR influence on earnings quality, firm performance, and firm value. 

scholarly journals The relationship between tax avoidance, company characteristics and corporate governance: Evidence from Greece

2019 ◽  
Vol 16 (4) ◽  
pp. 77-86
Author(s):  
Evangelos Chytis ◽  
Stergios Tasios ◽  
Ioannis Georgopoulos ◽  
Zois Hortis
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Random Effect ◽  
Negative Relationship ◽  
Tax Avoidance ◽  
Company Size ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Return On Capital ◽  
Athens Stock Exchange

The purpose of this paper is to research a possible relationship between corporate tax avoidance with corporate governance characteristics such as board independence, the type of auditing company and the concentration of ownership, and a range of selected financial indicators such as return on capital employed, liquidity, leverage, and company size. For this reason, the analysis was based on quantitative and qualitative data derived from the annual financial reports from a sample of 56 companies listed on the Athens Stock Exchange covering the period 2011 to 2015. As a measure of tax avoidance, the cash effective tax rate was used, while a linear regression model using the random effect method was estimated in order to examine the factors that affect it. The results of the study show that the cash effective tax rate has a statistically significant positive relationship with company size and a significant negative relationship with return on capital employed. All in all, the research shows that Greek large-sized companies show less tax avoidance, whereas in companies with a high return on capital employed the extent of tax avoidance is higher. There was no statistically significant impact of corporate governance variables on tax avoidance.

scholarly journals Corporate Social Responsibility And Tax Avoidance: Evidence From Korean Firms

2017 ◽  
Vol 33 (6) ◽  
pp. 1059-1068 ◽  
Author(s):  
SungJong Park
Keyword(s):  
Economic Development ◽  
Corporate Social Responsibility ◽  
Social Services ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Tax Avoidance ◽  
Least Square ◽  
Socially Responsible ◽  
Corporate Social ◽  
The Relationship

This study examines the relationship between corporate socially responsible (CSR) activities and tax avoidance using residual book-tax differences (BTD), year residual BTD and total BTD. Using a sample of 1,148 publicly listed Korean firms on Korean Stock Exchange (KSE) covering periods between 2004 and 2009 it finds that the firms with higher CSR activities are less likely to avoid taxes regardless which proxy of tax avoidance is used. This finding is confirmed with two stage least square (2SLS) method after accounting for endogeneity of CSR. It also tests how seven different CSR activities affect tax avoidance, and finds that social services, satisfaction of employees and contributions to economic development are negatively related to tax avoidance. Overall, the empirical results of this paper support the previous studies arguing the negative relationship between tax avoidance and CSR.

scholarly journals TAX AVOIDANCE, RELATED PARTY TRANSACTIONS, CORPORATE GOVERNANCE AND THE CORPORATE CASH DIVIDEND POLICY

2017 ◽  
Vol 32 (3) ◽  
pp. 190
Author(s):  
Dewi Kartika Sari ◽  
Sidharta Utama ◽  
Hilda Rossieta
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Negative Relationship ◽  
Tax Avoidance ◽  
Payout Policy ◽  
Cash Dividend ◽  
Dividend Payout ◽  
Related Party Transactions ◽  
Dividend Payments ◽  
The Relationship

This study aims to investigate the relationship between tax avoidance, related party transactions and the corporate dividend policy. Furthermore, this study will also investigate the moderating effects of the implementation of Corporate Governance (CG) on the relationship between tax avoidance, Related Party Transactions (RPT) and corporate dividend policies. Our sample covers companies listed on the Indonesian Stock Exchange during 2011-2014. The results provide moderate support for the proposed hypotheses. First, the greater tax avoidance that a company makes will increase the size of the firm's RPT. Second, the higher that the company's RPT is, this will lower the company's cash dividend payout rate. Third, the greater the tax avoidance is, the lower the company's cash dividend payout rate will be, which is done through a related party transaction.Fourth, the impact of the implementation of strong CG will weaken the positive relationship between corporate tax avoidance and the company’s RPT size, strengthen the negative relationship between the RPT’s size and the cash dividend payout policy of the firm, and strengthen the negative relationship between the company’s tax avoidance and the company's cash dividend payout policy which is mediated by the company’s RPT. This study makes three contributions. First, this study shows an indirect relationship between tax avoidance and cash dividend payments, mediated by RPT. Second, this study tries to examine the effect of CG’s moderation on the relationship between tax avoidance and RPT, as well as the effect of CG’s moderation on the relationship between tax avoidance and cash dividend payments, mediated by RPT. Third, this study developed RPT measurements by looking at the RPT’s components more specifically (looking at components of transactions outside of the main business of the company - the "others" component).

The role of the media in socially responsible investing

2020 ◽  
Vol 38 (4) ◽  
pp. 823-841 ◽  
Author(s):  
Shan Lei ◽  
Yafei Zhang
Keyword(s):  
Media Coverage ◽  
News Coverage ◽  
Negative Relationship ◽  
Tax Avoidance ◽  
Computer Assisted ◽  
Media Content ◽  
Socially Responsible ◽  
Content Type ◽  
Media Sentiment ◽  
The Impact

PurposeThis study aims to understand how media content and media sentiment in corporate social responsibility (CSR) news coverage affect investment performance, as reflected in the S&P 500 Environmental and Socially Responsible Index from 2010 to 2016.Design/methodology/approachComputer-assisted content analysis and sentiment analysis are employed to analyze 818 CSR-related newspaper articles from mainstream newspapers. Autoregressive model is used to comprehend socially responsible investment (SRI) performance.FindingsThis study reveals the impact of media content and media sentiment of CSR-related news articles on SRI. The authors’ findings indicate that such topics as recognition of a company's CSR contributions in CSR-related news articles are positively associated with SRI performance, whereas topics such as tax avoidance and environmental protection show a negative relationship with SRI performance. In addition, this study contributes to the authors’ understanding of framing bias in investment by confirming a significant positive association between an uncertain or constraining media sentiment and SRI performance, as well as a negative relationship between a litigious sentiment and SRI performance.Originality/valueThere has been limited attention to examining the effect of media coverage of CSR on the financial market. Since SRI is one of the most useful financial indices for SRIs, it is meaningful to explore the relationship between media coverage of CSR and SRI. To fill the research gap, this study specifically examines how media coverage of CSR-related issues is associated with SRI performance.

THE EFFECT OF CORPORATE GOVERNANCE AND CORPORATE CULTURE ON FIRM MARKET VALUE TO IMPROVE FINANCIAL PERFORMANCE

2020 ◽  
Vol 1 (6) ◽  
pp. 930-940
Author(s):  
Fathiyah Fathiyah ◽  
Mufidah Mufidah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Culture ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Market Value ◽  
Company Performance ◽  
Financial Company

The purpose of this research is to analyze the effect of corporate governance and corporate culture  on firm market value to improve financial performance. Corporate governance  is measured by audit  committee,boards of directors, board meeting and nomination . Corporate culture is measured by Corporate culture promotion While financial  company performance is measured by return on assets.  This research was conducted on companies listed on the Indonesia Stock exchange on indexed LQ 45 for period of 2016-2018. The sample was selected for 25 companies. The method of analysis uses associate descriptive analysis with  path analysis. Based on the results of the study found that corporate governance and culture promotion indirectly effect on financial performance with firm market value as intervening variable.

Faktor-Faktor Yang Mempengaruhi Tax Avoidance Dengan Profitabilitas Sebagai Varibel Intervening

IJAcc ◽  
2020 ◽  
Vol 1 (2) ◽  
pp. 120-131
Author(s):  
Imam Aji Santoso ◽  
Hendriyati Haryani ◽  
Wyne Febrianti
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Good Corporate Governance ◽  
Corporate Social

Penelitian ini bertujuan untuk mendapatkan bukti empiris dan rasional mengenai pengaruh pengungkapan corporate social responsibility (CSR), good corporate governance (GCG), dan karakteristik perusahaan terhadap tax avoidance dengan profitabilitas sebagai variabel intervening, pada perusahaan sektor industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia. Metode yang digunakan dalam penelitian ini adalah metode analisis regresi linier berganda dengan bantuan smart PLS. Penelitian ini didasari dari penelitian yang sudah dilakukan sebelumnya. Penelitaan ini lakukan untuk mengetahui apakah hasil penelitian terdahulu dengan penelitian sekarang masih sama atau beda. Hasil penelitian menunjukan bahwa secara simultan, variabel corporate social responsibility, good corporate governance, dan karakteristik perusahaan terhadap tax avoidance dengan profitabilatas sebagai variabel intervening, berpengaruh signifikan dan positif. Peneliti disini menemukan beberapa perbedaan hasil dengan peneliti yang terdahulu atau sebelumnya, Hasil penelitian ini diharapkan dapat dimanfaatkan oleh pembaca sebagaimana semestinya. Bahkan bisa dilakukan penelitian lebih lanjut atas hasil yang sudah saya teliti.

SOCIALLY RESPONSIBLE MARKETING AS A TOOL OF ORGANIZATION'S REPUTATION MANAGEMENT

2017 ◽  
Author(s):  
Zoya Ostropolska ◽  
Keyword(s):  
Corporate Culture ◽  
Modern Society ◽  
Reputation Management ◽  
Corporate Ethics ◽  
Special Role ◽  
Communication Policy ◽  
Socially Responsible ◽  
Positive Image ◽  
Long Run ◽  
The Impact

It is noted that in modern socio-economic conditions the problem of social responsibility of business, which is based on the responsibility of the organization for the impact of its decisions on society, its welfare, the environment; the interrelation of such concepts as social corporate responsibility, corporate ethics, corporate culture, business ethics, social and ethical marketing, image, reputation is analyzed. Emphasis is placed on the fact that compliance with the principles of socially responsible marketing directly affects the formation of a positive image and reputation of the company, which in turn are the same assets of the company as others, but do not have a material component. The essence of the concepts "image" and "reputation" is revealed, the interrelation between these concepts is investigated and their fundamental differences are determined. The special role of trust in the process of managing the reputation of the organization is determined; the definition of trust as the basis for the formation of reputation is given; emphasis is placed on the crisis of confidence in modern society and approaches to overcoming this crisis. It is noted that the formation of trust is possible due to the openness of the company and public dialogue, which is based on the organization's communication policy, not only with the use of advertising in all its manifestations or PR technologies, but also certain social actions, active participation in public life. solving social problems, ie all those issues that are outside the scope of business, but indirectly affect it. It is concluded that socio-ethical, environmental, cultural problems have long acquired a global character, solving these problems brings additional benefits to business in the long run, strengthens its reputation and forms a positive image in society, to implement all these intentions designed socially responsible marketing , which becomes a tool in managing the reputation of the organization. It is noted that the problem of reputation management as an asset of the organization, which is becoming increasingly important and requires a strategic approach, needs special attention.

Corporate Governance and Tax Avoidance: Evidence from Governance Reform

2021 ◽  
Author(s):  
Jon N. Kerr ◽  
Richard A. Price ◽  
Francisco J. Román ◽  
Miles A. Romney
Keyword(s):  
Corporate Governance ◽  
Tax Avoidance ◽  
Governance Reform
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