Corporate ethical decision-making: the role of top management and board compostion in tax avoidance and corporate social responsibility decoupling

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2024-07-04
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en
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Abstract
This study examines how the composition of top management and the board of directors affects a corporation’s usage of tax avoidance and corporate social responsibility (CSR) decoupling. For an international sample of 754 firms, for the period 1997 to 2022, the results indicate that the composition of the board of directors influences the levels of tax avoidance and CSR decoupling exhibited by corporations. The findings suggest that corporations with a more independent board of directors employ less tax avoidance and CSR decoupling. Moreover, board members’ expertise positively moderates the relationship between board independence and both tax avoidance and CSR decoupling. These findings suggest that, when board members possess sufficient expertise and independence, they are better able to detect and inhibit the usage of tax avoidance and CSR decoupling.
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Faculteit der Managementwetenschappen
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