Corporate social responsibility and tax avoidance

Goerke, Laszlo

doi:10.1111/jpet.12341

Cited by 37 publications

(28 citation statements)

References 59 publications

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“…In the CSR literature, little is known about the effects of tax policy on corporate socially responsible behaviours. Theoretical and empirical literature mainly questioned whether corporate tax payments and CSR act as complements or substitutes (Goerke, 2018). Empirical research suggests competing predictions about the relationship between tax payments and CSR (Laguir, Staglianò, & Elbaz, 2015;Landry, Deslandes, & Fortin, 2013;Lin, Cheng, & Zhang, 2017).…”

Section: Theoretical Framework and Research Hypothesismentioning

confidence: 99%

“…However, little is known about the effects of corporate tax policy on CSR activities. Theoretical and empirical literature mainly investigated the relationship between CSR and tax avoidance, finding interesting but ambiguous results (Davis, Guenther, Krull, & Williams, 2016;Goerke, 2018;Huseynov & Klamm, 2012). Recently, Lòpez-Gonzàlez, Martìnez-Ferrero, and Garcìa-Meca (2019) find that social and environmental performance is negatively related with tax This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.…”

Section: Introductionmentioning

confidence: 99%

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Do income taxes affect corporate social responsibility? Evidence from European‐listed companies

Gandullia

Piserà

2019

Corp Soc Responsibility Env

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This study explores empirically the effects of corporate income taxes on the incentive to invest in corporate social responsibility (CSR) activities. We estimate the relation between CSR ratings and firm‐specific corporate effective tax rates for a large sample of nonfinancial‐listed companies from 15 European countries during 2006–2016. By employing an instrumental variable approach, we find that average effective tax rates are negatively correlated with CSR ratings. Our findings are also consistent under additional tests and robustness checks. We, therefore, can provide suggestive evidence that corporate taxation discourages corporate socially responsible behaviour. At the same time, in a tax policy perspective, our analysis suggests how countries could encourage through the tax system the corporate provision of sustainable investments.

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Section: Theoretical Framework and Research Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Do income taxes affect corporate social responsibility? Evidence from European‐listed companies

Gandullia

Piserà

2019

Corp Soc Responsibility Env

View full text Add to dashboard Cite

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“…One of the reasons, with the CSR activity, company can reduce tax paying. Companies will spend a lot of cost hence they can reduce profits and pay less taxes (Goerke, 2019). Graham et al (2014) suggest that when determining tax avoidance strategies, tax managers are sensitive to the potential negative reputation and the sanction risk.…”

Section: Ceo Overconfidencementioning

confidence: 99%

“…Many companies try to reduce the amount of costs that are not allowed by the Taxation Law (Mao, 2019). Reducing on costs is also supported by the Corporate Social Responsibility (CSR) activity which increases rapidly (Goerke, 2019). With the existence of CSR activities, companies will spend a lot of cost in order to reduce profits and pay less taxes.…”

Section: Introductionmentioning

confidence: 99%

CEO overconfidence, tax avoidance, and education foundation

Sumunar

Jannah

Aulia

2019

JAAI

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Companies use tax avoidance to maximize after-tax income. This study examines whether CEO overconfidence has a positive effect to tax avoidance, and whether education foundation as a moderating variable strengthens or weakens that effect. Many studies on tax avoidance only focus on CSR activities in general and do not analyze the role of CEO in decision making. Using panel datasets from 305 companies in Indonesia from 2013-2017 that obtained from Thomson Reuters, the results show that CEO overconfidence has a significant positive effect on tax avoidance, and education foundation weakens the positive effect of CEO overconfidence on tax avoidance. With the role of CEO overconfidence, companies will do tax avoidance because CEO overconfidence can use their strong policy preferences to make decisions.

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“…Dietsch [10] posits that asking entities that engage in conscious tax minimisation strategies to pay more taxes is like "asking the fox to guard the henhouse". Indeed, these are common the world over, even in advanced economies, where economic systems effectively control such behaviours [11]. Ironically, CSR disclosure reports do not always consider corporate tax payments as part of an entity's CSR agenda.…”

Section: Introductionmentioning

confidence: 99%

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

Issah

Rodrigues

2021

Sustainability

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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.

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Corporate social responsibility and tax avoidance

Cited by 37 publications

References 59 publications

Do income taxes affect corporate social responsibility? Evidence from European‐listed companies

Do income taxes affect corporate social responsibility? Evidence from European‐listed companies

CEO overconfidence, tax avoidance, and education foundation

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

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