The relationship between CSR decoupling and Corporate Tax avoidance: The moderating effect of Country- and firm-level governance

dc.contributor.advisorReimsbach, Daniel
dc.contributor.authorRessing, Jelle
dc.date.issued2022-08-29
dc.description.abstractThis study provides no significant evidence for the positive relationship between CSR decoupling and tax avoidance. However, additional analyses show that different tax avoidance measures provide significant evidence for either a positive or a negative relationship with internal, external and the total sum of CSR actions. Furthermore, this study investigates the potential moderating effect of country- and firm-level governance on the relationship between CSR decoupling and tax avoidance. CSR decoupling can be defined as the discrepancy between the internal CSR performance and the external CSR disclosure. The measure for CSR decoupling is based on the renowned study of Hawn & Ioannou (2016) which created a variable based on 44 internal- and external actions. Corporate tax avoidance is calculated based on three different effective tax rate (ETR) measures. In order to investigate the relationship between CSR decoupling and tax avoidance, the study makes use of an ESG Europe sample of 556 firms during the 8-year period of 2013-2020. Using fixed-effects models, the results show no significant positive relationship between CSR decoupling and tax avoidance. Country-level governance is significantly strengthening the positive relationship between CSR decoupling and corporate tax avoidance. However, due to the insignificant relationship between CSR decoupling and tax avoidance, the significant moderating effect of Country-level governance does not make sense. The expected effect of firm-level governance as a strengthening moderator in the relationship between CSR decoupling and tax avoidance cannot be confirmed. This paper provides insights into in what the relationship is between CSR decoupling and tax avoidance based on a European sample. Furthermore, the study provides evidence on the potential moderating effect of country- and firm-level governance in this relationship. These insights can be of value for stakeholders, board members and policymakers.en_US
dc.identifier.urihttps://theses.ubn.ru.nl/handle/123456789/13887
dc.language.isoenen_US
dc.thesis.facultyFaculteit der Managementwetenschappenen_US
dc.thesis.specialisationAccounting & Controlen_US
dc.thesis.studyprogrammeMaster Economicsen_US
dc.thesis.typeMasteren_US
dc.titleThe relationship between CSR decoupling and Corporate Tax avoidance: The moderating effect of Country- and firm-level governanceen_US
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