How does corporate social responsibility affect tax avoidance?

Document Type

Conference Proceeding

Publication Title

2016 AFAANZ Conference

School

School of Business and Law

RAS ID

22406

Comments

Li, Y., Wang, Q., & Xiang, E. (2016). How does corporate social responsibility affect tax avoidance? [Paper presentation]. In 2016 AFAANZ Conference, Jupiters Hotel, Gold Coast, Australia.

Abstract

This paper empirically investigate the impact of corporate social responsibility (CSR) on tax avoidance and the moderation effect of disclosure initiative and ownership on CSR-tax avoidance relation in China. We find that firms with higher CSR fulfilment have a lower level of tax avoidance, which is consistent with stakeholder theory and corporate culture theory. We also find that the impact of CSR on tax avoidance is stronger in firms that voluntarily disclose their CSR information and in non-state-own enterprises. Findings in this paper would have some implications on the policymaking of the taxation authorities and capital market regulatory authorities.

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