Companies adjust tax payments to offset changes in publicly perceived impact on environment, social, and governance factors.
Corporate tax avoidance is a significant international issue, resulting in annual losses of USD 100–240 billion for governments globally. Understanding the relationship between firms' corporate social responsibility (CSR) and tax avoidance activities is crucial to uncovering their motivations for ta...
| Published in: | Humanities & Social Sciences Communications Vol. 12; no. 1; pp. 1 - 17 |
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| Main Authors: | , , , |
| Format: | Article |
| Published: |
Springer Nature
1/31/2025
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=182614185&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 182614185 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: MVR0 jtl: Humanities & Social Sciences Communications maglogo: N pubinfo: dt: 1/31/2025 vid: 12 iid: 1 pid: 237 pub: Springer Nature artinfo: ui: 182614185 10.1057/s41599-024-04199-4 ppf: 1 ppct: 16 formats: tig: atl: Companies adjust tax payments to offset changes in publicly perceived impact on environment, social, and governance factors. aug: au: Okuyama, Akihiro Tsugawa, Shuichi Matsunaga, Chiaki Managi, Shunsuke affil: https://ror.org/00hx57361 Department of Civil and Environmental Engineering, Princeton University, Princeton, NJ, USA https://ror.org/012tqgb57 Faculty of Economics, Ryukoku University, Kyoto, Japan https://ror.org/00skwgg83 Department of Environmental Science, International College of Arts and Sciences, Fukuoka Women's University, Fukuoka, Japan https://ror.org/00p4k0j84 Urban Institute, Kyushu University, Fukuoka, Japan su: Social responsibility of business Environmental, social, & governance factors Tax base Reputational risk Corporate taxes sug: subj: Social responsibility of business Environmental, social, & governance factors Tax base Reputational risk Corporate taxes keyword: Auditing and Accountability Business and Management Commerce Management Tourism and Services Accounting ab: Corporate tax avoidance is a significant international issue, resulting in annual losses of USD 100–240 billion for governments globally. Understanding the relationship between firms' corporate social responsibility (CSR) and tax avoidance activities is crucial to uncovering their motivations for tax avoidance. However, this relationship remains unclear. This study investigates firms' tax payment motivations from environmental, social, and governance (ESG) perspectives by examining samples of firms with high, low, and no ESG-related reputational risk. We utilize the ESG index, which offers a broader scope than conventional CSR measures. Our empirical analysis includes 3981 firm-year observations from 31 OECD countries between 2017 and 2019. To determine the relationship between ESG and tax avoidance, we develop a reputation-based ESG risk dataset that addresses the endogeneity associated with managerial decisions and simultaneity bias. This study is among the few that explore the international relationship between ESG performance and tax avoidance, contributing to the shift from CSR to ESG in discussions of tax avoidance. Our findings reveal that companies' tax payment behavior varies based on their ESG reputational risk. Specifically, firms with high ESG risk pay more taxes when their ESG risk is elevated, whereas firms with low ESG risk do not alter their tax payments based on ESG risk. Additionally, firms without any ESG risk tend to pay more taxes as their ESG scores increase. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 2025 holdings: @attributes: islocal: N |
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