Corporate Tax Payments and Corporate Social Responsibility: Complements or Substitutes? Empirical Evidence from Europe

Preu, Arne; Preu, Bjorn

doi:10.4172/2151-6219.1000326

Cited by 4 publications

(2 citation statements)

References 59 publications

(133 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In line with the view of those who do not believe that the principles of CSR are real and adequately addressed in management practices, Preuß and Björn [35] found that CSR is negatively associated with tax payments and they suggested that corporate tax payments and CSR from European public companies act as substitutes. These authors concluded that corporate tax payments may not be viewed as part of CSR.…”

Section: Theoretical and Practical Issues On Social Responsibility Ethics And Tax Managementmentioning

confidence: 75%

Corporate Behavior: An Exploratory Study of the Brazilian Tax Management from a Corporate Social Responsibility Perspective

2020

View full text Add to dashboard Cite

A look into the literature on corporate social responsibility (CSR) reveals few studies focusing on the relationship between ethical concerns and corporate behavior of companies that perform tax evasion management. This study links tax management with ethics and CSR reporting. The purpose of this article is to analyze financial and social responsibility information disclosed by the five main Brazilian construction companies that are being investigated in Brazil’s Operation Car Wash (Operação Lava-Jato—in Portuguese) because of inappropriate behavior. Based on the theoretical concepts of organizational façades and organized hypocrisy, we used content-analysis methodology and lexical search approach to analyze the consistency between the practices of tax management and CSR reporting. The results reveal evidence of aggressive tax management. To meet its tax management objectives, a company usually manages and plans taxes accordingly, delaying the payment of tax debt and not reporting all tax risks, thus being fined for violations of the law. We found evidence of organized hypocrisy and organizational façades, since there are contradictions between the tax behavior of the investigated companies and their CSR and ethical discourse.

show abstract

Section: Theoretical and Practical Issues On Social Responsibility Ethics And Tax Managementmentioning

confidence: 75%

Corporate Behavior: An Exploratory Study of the Brazilian Tax Management from a Corporate Social Responsibility Perspective

2020

View full text Add to dashboard Cite

show abstract

“…Golden Tax Project III enhanced tax administration and reduced opportunities for tax avoidance, thus increasing the tax and cost burden on firms [4][5][6]. In addition, studies have pointed out that corporate tax payments and corporate social responsibility are substitutes for each other and that degree of corporate tax avoidance is significantly and positively related with ESG performance [7,8]. This suggests that taxation may increase cost pressure on firms and reduce their willingness to engage in ESG activities.…”

Section: Introductionmentioning

confidence: 99%

Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III

Ling

Zhang

2023

Sustainability

View full text Add to dashboard Cite

With the growing importance of sustainable development, ESG is receiving attention from governments, firms, and investors. This study uses the reform of China’s tax inspection system—Golden Tax Project III—as a quasi-natural experiment to examine the impact of the enhanced tax administration on firms’ ESG performance with a sample of Chinese A-share listed companies from 2008 to 2020. The findings, which were identified via a time-varying difference-in-differences (time-varying DID) approach, indicate that Golden Tax Project III significantly reduces firms’ ESG performance and has the most significant impact on the environmental dimension and the minor impact on the social dimension. The negative impact of Golden Tax Project III on ESG performance is more substantial among non-state firms and firms in regions with higher levels of marketization than other firms. The mechanism test shows that Golden Tax Project III negatively affects ESG performance by increasing the tax burden on firms. The moderating effect test shows that tax incentives can effectively mitigate the dampening effect of strengthened tax administration on ESG performance. This study enriches the literature on the factors influencing firms’ ESG performance to a certain extent; it helps the government use taxation policies to inspire firms to improve ESG performance, contributing to sustainable development.

show abstract

Social and ethical factors versus tax fraud: the role of corporate social responsibility in the Romanian context

Amelio,

Gazzola,

Vatamanescu

et al. 2024

SRJ

View full text Add to dashboard Cite

Purpose Tax evasion and tax avoidance consistently strip national budgets of tremendous financial resources. Consequently, the discussion on tax fraud remains topical and a moving target subject matter. Various antecedents and moderators of tax fraud have been investigated over the years, yet the literature dedicated to the linkage between corporate social responsibility (CSR) and tax practices exhibited ambiguous results. In this respect, the purpose of this study is to present the results of an investigation into the nonfinancial factors affecting tax fraud and the moderating effect of CSR-related behaviors. Design/methodology/approach Structural equation modeling (SEM) was applied in a multivariate statistical analysis technique to analyze structural relationships. The measurement and structural models were evaluated using component-based partial least squares (PLS), a rigorous statistical instrument. The opportunity to use PLS-SEM is supported by the advancement of models comprising both reflective and formative constructs as in the present case. Findings Data collected from a sample of 290 respondents from Romania confirmed that social and ethical factors significantly impact tax fraud and CSR-related behaviors. In addition, the latter plays a moderating effect between nonfinancial factors and tax fraud. Research limitations/implications The research sample is country-centric (i.e. subjects come from Romania) while the questionnaire-based survey relies on self-reported measures. Originality/value The paper adds new evidence to the extant knowledge and points to theoretical and managerial implications.

show abstract

Corporate Tax Payments and Corporate Social Responsibility: Complements or Substitutes? Empirical Evidence from Europe

Cited by 4 publications

References 59 publications

Corporate Behavior: An Exploratory Study of the Brazilian Tax Management from a Corporate Social Responsibility Perspective

Corporate Behavior: An Exploratory Study of the Brazilian Tax Management from a Corporate Social Responsibility Perspective

Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III

Social and ethical factors versus tax fraud: the role of corporate social responsibility in the Romanian context

Contact Info

Product

Resources

About