Effect of corporate social responsibility on corporate tax avoidance: evidence from a matching approach

Mao, Chih-Wen

doi:10.1007/s11135-018-0722-9

Cited by 47 publications

(45 citation statements)

References 37 publications

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“…In addition, the CSR variable coefficient is positive, which means that the higher the level of CSR performance carried out by the company, the higher the level of corporate tax aggressiveness. The results of this study are consistent with the research conducted by Maraya and Yendrawati (2016) and Mao (2019). Maraya and Yendrawati (2016) show that the companies seem to have double obligations to budget the funds for both CSR and taxation activities.…”

Section: Discussionsupporting

confidence: 90%

“…Thus, the companies would tend to be more aggressive in tax planning. Whereas Mao (2019) found that the companies involved in CSR programs have a higher level of tax aggressiveness compared to the companies that are not involved in CSR. Mao (2019) argues that companies involved in CSR activities have the motive to hide the practice of tax avoidance because the companies' involvement in CSR can reduce the risk of tax audits by the tax authority.…”

Section: Discussionmentioning

confidence: 98%

“…Therefore, by taking a passive attitude towards taxes, the company will gain legitimacy in the community and can choose the sustainability of its business activities in the community. In other words, CSR and taxes are complementary (Mao, 2019). Minor and Morgan (2011) state that companies that have a high reputation tend to avoid serious problems related to political, regulatory, and social violations.…”

Section: Literature Of Hypothesis Review and Developmentmentioning

confidence: 99%

“…Minor and Morgan (2011) add that CSR can function like insurance that can help companies in reducing sanctions when they are involved in a negative case. The practice of tax avoidance by utilizing CSR can also be explained using a perspective of risk management strategies (Mao, 2019). In this perspective, companies tend to comply with CSR activities.…”

Section: Literature Of Hypothesis Review and Developmentmentioning

confidence: 99%

“…In this perspective, companies tend to comply with CSR activities. CSR programs are used by the company as a tool to cover up the tax avoidance practices it does (Mao, 2019). In other words, the relationship between CSR and taxes is substitute or CSR has a positive influence on the level of tax aggressiveness.…”

Section: Literature Of Hypothesis Review and Developmentmentioning

confidence: 99%

See 4 more Smart Citations

Do Corporate Social Responsibility and Corporate Governance Affect Tax Aggressiveness? Evidence from Indonesia

Hasibuan

Khomsiyah

2019

Journal of Accounting, Business and Finance Research

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For businesses in Indonesia, corporate social responsibility (CSR) is still seen as an additional burden that will incriminate the company. Based on the observations of two companies that received awards for the CSR programs, it seems that the company always received a Tax Underpayment Assessment Letter (SKPB) from the Directorate General of Taxes for the period 2014-2017. This suggests that the burden of CSR incurred by the company exceeds the limits set out in the provisions of Minister of Finance Regulation Number (2011). The indications that arise for these conditions are the efforts made by the company to practice tax avoidance by posting CSR expenses above the applicable provisions with the aim of reducing corporate's income taxes. But the aggressive tax planning measures should be minimized by implementation of good corporate governance (GCG). This study aims to examine the effect of CSR and corporate governance (CG) on corporate tax aggressiveness and the effect of CSR on tax aggressiveness which is moderated by corporate governance. The objects of the research are the financial statements of public companies listed on the Indonesia Stock Exchange (IDX) with the observation period of 2014-2017. The data are analysed using multiple linear regression. The test results show that CSR has a positive effect on tax aggressiveness, however corporate governance does not affect tax aggressiveness. Furthermore, corporate governance has no effect in moderating the effect of CSR on tax aggressiveness.

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Section: Discussionsupporting

confidence: 90%

Section: Discussionmentioning

confidence: 98%

Section: Literature Of Hypothesis Review and Developmentmentioning

confidence: 99%

Section: Literature Of Hypothesis Review and Developmentmentioning

confidence: 99%

Section: Literature Of Hypothesis Review and Developmentmentioning

confidence: 99%

See 3 more Smart Citations

Do Corporate Social Responsibility and Corporate Governance Affect Tax Aggressiveness? Evidence from Indonesia

Hasibuan

Khomsiyah

2019

Journal of Accounting, Business and Finance Research

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Tax avoidance and sustainability reporting: Alignment or greenwashing strategy?

Nasih,

Harymawan,

Abdul Rasid

et al. 2024

Corp Soc Responsibility Env

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This study examines the relationship between sustainability reporting and tax avoidance, distinguishing genuine alignment with environmental and social commitments from greenwashing strategies. We also examine the impact of tax amnesty programs on these reporting motives. Using Indonesian nonfinancial listed firms in the 2010–2018 period, this study reveals that these firms employ sustainability reporting as a means of impression management to conceal their tax avoidance practices. Moreover, we document a negative relationship between sustainability reporting and tax avoidance when the firms participate in the tax amnesty program. Our findings are robust, and we provide several additional analyses to expand our contribution. Lastly, our study is believed to be one of the few that focuses on providing empirical evidence on how sustainability reporting is utilized as a “smokescreen” of tax avoidances.

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Corporate social responsibility and tax avoidance: Channeling effect of family firms

Özbay

Adıgüzel

Gökmen

2023

J Corp Accounting Finance

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Although the relationship between tax avoidance and corporate social responsibility has been the subject of many studies, results have been inconclusive. In this study, we investigate this relationship from the agency perspective of family firms. Using 1156 firm‐year observations from 94 firms listed on the Istanbul Stock exchange, we found that socially responsible non‐family firms engage in tax avoidance activities through discretionary book‐tax differences rather than tax avoidance through aggressive tax planning and tax sheltering, and this behavior is opposite in family firms. According to findings, family firms engage in more aggressive tax planning than non‐family firms. This study also provides evidence about the external effects on the relationship between CSR and tax avoidance when family firms are monitored effectively by institutional investors or debtors. More specifically, external monitoring by institutional investors or debtors only affects the tax avoidance behaviors of non‐family firms.

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Effect of corporate social responsibility on corporate tax avoidance: evidence from a matching approach

Cited by 47 publications

References 37 publications

Do Corporate Social Responsibility and Corporate Governance Affect Tax Aggressiveness? Evidence from Indonesia

Do Corporate Social Responsibility and Corporate Governance Affect Tax Aggressiveness? Evidence from Indonesia

Tax avoidance and sustainability reporting: Alignment or greenwashing strategy?

Corporate social responsibility and tax avoidance: Channeling effect of family firms

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