Do Socially Responsible Firms Pay More Taxes? Academic Article

abstract

• ABSTRACTWe investigate the relation between corporate tax payments and corporate social responsibility. Because existing theory and empirical studies find inconsistent evidence on the relation between these constructs, we investigate whether the two activities act as complements or substitutes. We estimate the relation between measures of corporate social responsibility and (1) the amount of corporate taxes paid, and (2) the amount invested in tax lobbying activities using both ordinary least squares and a system of simultaneous equations. We find consistent evidence that corporate social responsibility is negatively related to five-year cash effective tax rates and positively related to tax lobbying expenditures. Our evidence suggests that, on average, corporate social responsibility and tax payments act as substitutes.Data Availability:Data are available from sources identified in the paper.

authors

• Williams, Brian

published proceedings

• The Accounting Review

altmetric score

• 17.3

author list (cited authors)

• Davis, A. K., Guenther, D. A., Krull, L. K., & Williams, B. M.

citation count

• 292

complete list of authors

• Davis, Angela K||Guenther, David A||Krull, Linda K||Williams, Brian M

publication date

• January 2016

publisher

• American Accounting Association  Publisher

published in

• Accounting Review  Journal

keywords

• 35 Commerce, Management, Tourism And Services
• 3501 Accounting, Auditing And Accountability
• 3507 Strategy, Management And Organisational Behaviour
• Generic Health Relevance

Digital Object Identifier (DOI)

• 10.2308/accr-51224

start page

• 47

end page

• 68

volume

• 91

issue

• 1

URL

• http://dx.doi.org/10.2308/accr-51224